LYUBOV – Chita Region, Russia The Lyubov project is located in the Chita region, 400 kilometres to the southwest of the city of Chita and 25 kilometres north of the Mongolian border. The project includes the exploration and mining rights for the adjoining Malo-Fedorovskoye and Lyubavinskoye deposits which are part of a larger license area of 132 sq. km. Both deposits and a number of other prospects on the property feature vein-type, disseminated and stockwork-style gold mineralization hosted in a sedimentary sequence which are intruded by small stocks and dykes.

Lyubov region

Property acquisitions were made pursuant to public auctions at a total cost of Rbl 66.4 million (US $2.33 million). The properties are accessible by road and are linked to the State electrical power grid. Historic exploration and mining activities on the properties originally focused on high-grade veins, but in the late 1990s exploration was directed towards developing a near surface, bulk tonnage resource that would be amenable to heap leaching. Consequently, a Russian C2+P1 resource of 230.000 ounces of gold grading 2.1 g/t Au was outlined at Malo-Fedorovskoye.

The multi-disciplinary field programme of 2006 has been completed on schedule including 1,500 metres of diamond drilling, 850 metres of trenching, 3,500 core and trench samples, and geophysical surveys (IP, resistivity, magnetics) covering a 10 sq. km area. Drilling at the Malo-Fedorovsky prospect visually confirmed previous results and identified additional wide intersects of visible sulfide mineralization; all assaying is in progress. The geophysical surveys identified several well-defined broad anomalies over an area of 6 sq. km in continuity of known zones of significant gold mineralization. The new anomalies are to be tested in 2007 with a 3,500 metres diamond drilling programme in addition to resource delineation drilling at the Malo-Fedorovsky prospect.

UNKURTASH – KASSAN, Kyrgyzstan Unkurtash (11 sq. km) is an advanced exploration project featuring stockwork-disseminated gold mineralization hosted in a granitic intrusion. The property has good potential for hosting a low grade open-pit bulk-mineable gold deposit and is located within the Kassan license, northwestern Kyrgyzstan. Barrick's 2005 trenching and diamond drilling program on the property identified significant gold grades in the 1- 2 ppm range over a wide area. A follow-up bulk sampling program in 2006 led to improved grades and confirmed bulk-mineable potential. All preparatory works (access roads, drill pads) have been completed for a 4,000 metre large-diameter reverse-circulation

Unkurtash region

KASSAN – Kyrgyzstan

Large grass root exploration property of 760 sq. km encompassing the Unkurtash license in the Kassan region, Northwestern Kyrgyzstan. Kassan hosts the two prospects Sarytube and Karytube with Unkurtash-style gold mineralization which are included for drill testing in the 2007 Unkurtash program.