Earaheedy Project (iron ore) - Giralia 100%

Giralia's 100% owned tenements cover 570 square kilometres, including 130 strike kilometres of the most iron-ore prospective areas of the Miss Fairbairn Hills in the northern Earaheedy Basin, 100 km north of Wiluna, and 200 km south of Newman in Western Australia.  Past exploration work in the late 1970s, principally by Amax Exploration (Australia) Inc. ("Amax"), resulted in the location of widespread areas of hematite enrichment with surface grades up to 66% Fe.  A small program of shallow drilling by Amax returned intersections of 22 metres @ 56.5% Fe including 14 metres @ 59.3% Fe, and 4 metres (to end of hole) @ 60.4% Fe wholly within Giralia's current tenements. Giralia's mapping and rock sampling has confirmed high-grade outcropping hematite mineralisation.

Giralia completed a 121 hole  RC drilling program in October-November 2008 to test for direct shipping iron ore beneath widespread hematite outcrops in the Miss Fairbairn Hills area.

A total of 8 of the 23 hills of known +57% Fe outcrop were tested in Giralia’s first significant drill program.  Holes were drilled predominantly as single traverses of 200 metres spaced vertical holes along new tracks constructed to access the crests of the low hills.

Of the 8 hills tested in this initial program, 4 produced significant intersections of hematite at shallow depths. The results are regarded as encouraging and confirm deep penetrative hematite enrichment of the iron formations in the Miss Fairbairn Hills, with many intersections commencing from surface.

Better intersections include hole RCE047; hematite mineralization from surface to end of hole, including 20 metres @ 55.7% Fe, within an overall zone of 40 metres @ 51.6% Fe, hole RCE088; 24 metres @ 53.8% Fe from surface including 8 metres @ 58.7% Fe, hole RCE117; 12 metres @ 57.3%Fe from surface and hole RCE150; 38 metres to end of hole @ 53.6%Fe, including 8 metres @ 56.8%Fe.

Further drilling at Earaheedy, once permitted, will target extensions to mineralised intercepts along with first pass tests of additional hills of hematite outcrop, particularly in the lightly explored east and south of Giralia’s tenements.  Selected intersections received are shown below;

Earaheedy Project October-November 2008 RC Drilling Results >4 metres @ 50% Fe

RC drill samples collected as 4 composites.  Intersections quoted using lower cut-offs of 50% and 55% Fe.  Up to 8 metres included material below cut-off.  All coordinates in MGA Zone 51 GDA 94, by hand held GPS ( 5m).    XRF analyses by Spectolab Laboratory Geraldton.  EOH =  open at end of hole.  QA/QC included typically field duplicate samples and two standard (Certified Reference Material), comprising one coarse standard and one pulverised standard for each drill hole. * cavity  9-14m (no sample)

Earaheedy Project, grey scale aeromagnetics with Giralia tenure (yellow) showing iron formation outcrops (pink) and October-November 2008 drilling (blue dots).