In late 2006 the Group commenced a shallow drilling exploration programme to identify the most important and immediately available shallow gold mining opportunities within the Central Rand Project (refer to Figure 1 below). As a result of this, nine areas that warrant further assessment for shallow mining operations were identified. These areas - or ''slots'' - are located over the Main, Bird and Kimberley Reefs, located in the Central Rand Goldfield which lies to the south of the City of Johannesburg (refer to Figure 2 below).

Currently, the Group is engaged in a drilling and exploration programme targeting the Kimberley Reef sequence on Consolidated Main Reef.

A conceptual mine plan has been developed for Consolidated Main Reef, Langlaagte, Crown Mines and City Deep within the Central Rand Project. This plan was submitted to the Department of Minerals and Energy (DME) on 25 July 2007 and formally accepted (although not yet approved) on 10 August 2007. The Company submitted an updated conceptual study to the DME on 1 October 2007, and is awaiting approval from the DME for the FEIC Mining Right Application.

The Group has a contractual entitlement to acquire the entire issued share capital in FEIC upon ministerial approval being granted to a Section 11 Application, which has been lodged. In so doing, the Group will ultimately become the holder of any mining right granted to FEIC.

The Group intends to continue updating and refining this work in order to complete a definitive feasibility study by the end of the first quarter of 2008 covering the initial intended gold production.

As at 23 September 2007, the Group had completed some 36,076 metres of drilling and had submitted 75,003 samples to the South African National Accreditation System (SANAS) accredited laboratories for assaying.

Figure 1: Central Rand Project area

Figure 2: Geological map of the Central Rand Project and surrounding area