Western Creek Iron Ore Project – (Giralia 100%)

Significant iron ore potential has been identified from preliminary field work at the Company's 100% owned Western Creek iron ore project, located 10 kilometres west of the town of Newman in the Pilbara Region of Western Australia and adjoining the BHP Mt Newman iron-ore mining leases in the Western Ridge area.  At Western Ridge, several BHP owned iron ore deposits are known, hosted by both the Brockman and Marra Mamba iron formations close to the Whaleback Fault (including the Silver Knight and Mt Helen deposits).

Giralia's Western Creek tenement covers around 3 square kilometres of Marra Mamba Formation outcrop, directly along the key Whaleback Fault.  BHP’s Marra Mamba formation hosted Silver Knight deposit, drilled between 1989 and 1991 by a BHP/Renison Ltd joint venture, lies immediately to the north and east of Giralia's ground.  Reports on the activities of the BHP/Renison joint venture, released to open file only very recently, show very significant drilling intersections within close proximity of the boundary of Giralia's tenement, including results from the last reported phase of drilling in September 1991 (holes EXPO178 to 183).  These six holes are the closest recorded to Giralia’s boundary at Silver Knight and show thick zones of Marra Mamba iron ore mineralisation;

Grid cords are Newman local grid, raw assay data sourced from WAMEX Item13955, BHP/Renison Report for 1991-1992 Programme. Intersections quoted are length weighted average grades using 52% Fe lower cut off.

Hole EXPO183 is plotted on historic BHP/Renison plans as being located just north (less than 200 metres) of  Giralia's current tenement boundary, with the thickest, highest grade part of the Silver Knight deposit interpreted as dipping towards, and being open towards Giralia's tenement.

Mapping and rock sampling carried out in early November 2007 on Giralia's tenement encountered thick zones of hematitic Marra Mamba Formation in a clear outcropping extension to the west of the Silver Knight deposit, with surface grades to 63.5 % Fe.

Landsat image of Giralia's Western Creek project showing iron ore deposits and November 2007 rock samples

Giralia has reported significant iron ore intersections from initial RC drilling testing direct extensions to BHP's Silver Knight iron ore deposit at Western Creek, including thick zones of near-surface, low phosphorous direct shipping iron ore ("DSO") hosted by the Marra Mamba Formation.

Intersections quoted using lower cut-offs of 50% and 55% Fe.  Up to 6 metres included material below cut-off.  All coordinates in MGA Zone 50 GDA 94, by hand held GPS (± 10m).  XRF analyses by Spectrolab Laboratory Geraldton.  RC drill samples collected as 2 metre riffle split composites.  QA/QC included typically field duplicate samples and standards (Certified Reference Material).

Potential for channel iron deposits ("CID") and detrital (scree) deposits is also recognised in Giralia's Western Creek tenement, with several mesas of pisolitic gravels located during initial field mapping, returning grades from surface sampling to 59.4% Fe. Additionally, samples of hematitic Archaean Banded Iron Formations of the Sylvania Inlier in the Spearhole Hills returned up to 61.25% Fe from Giralia'’s initial field reconnaissance evaluation of the extensive outcropping iron formations.  There is no record of previous iron ore exploration of these units.