Daltons Nickel Joint Venture (Giralia 75%, Haoma Mining NL 25%)

Giralia's Daltons nickel joint venture is located 150 kilometres south of Port Hedland in Western Australia's Pilbara region.  Giralia has earned 75% interest from Haoma Mining NL ("Haoma") in large tenements including more than 150 strike kilometres of lightly explored nickel prospective ultramafic rocks, with Haoma retaining rights to tantalum and gold.

The Kingsway prospect at Daltons comprises a 400 metre long basal contact segment at the irregular northern tip of the 5 kilometre long Daltons ultramafic body.  Two reported 1970s drill intersections of 0.9 metres @ 9.3% nickel, 3.6% copper, (within 3.5 metres @ 2.55% nickel, 1.2% copper), and 0.7 metres @ 11.8% nickel, 3.1% copper, (within 3.7 metres @ 2.41% nickel, 0.61% copper) recorded grades of more than 20% nickel over narrow intervals (ie: hole KDDH5 reportedly returned 0.36 metres @ 22.5% nickel, 4.12% copper).

Hole RDDN029, completed in late September 2005 returned Giralia's most significant intersection to date of 3.5 metres @ 1.61% nickel, 0.85% copper and 0.81 g/t PGE, including 1.35 metres @ 2.29 % nickel and 1.09% copper, hosted by metasediments in the immediate footwall of a thick serpentinised ultramafic body.  The grade of the intersection (around 2% nickel equivalent) is regarded as significant as total sulphide content is relatively low (up to 10%) confirming the presence of highly enriched base and precious metal sulphides at Kingsway.

The intersection in hole RDDN029 is located 65 metres up dip of previous Giralia holes RDDN022 (which intersected 0.5 metres @ 1.98% Ni, 0.97% Cu, 0.42 g/t PGE, including 0.15 metres @ 5.82% Ni, 1.41% Cu, 1.35 g/t PGE) and 60 metres west of RDDN025 (0.2 metres @ 2.57% Ni, 1.42% Cu, 0.83 g/t PGE).

Initial interpretation of a major detailed (1,479 line kilometre, 150 metre line spaced) VTEM airborne electromagnetic survey indicates over 100 first rank conductors. The survey was  flown by Falconbridge (Australia) Pty Ltd over the Daltons property in late 2006, just prior to its notice of withdrawal from a $15 million farm-in agreement at Daltons following its takeover by Xstrata.   Many of the conductivity features are associated with ultramafic units, and warrant field follow-up work.