East Kalgoorlie Project

Western Australia, Gold Prospect

East Kalgoorlie Project Tenement Location Plan:

Blair North E25/268 (NMI 79%, Balagundi Gold 21%)

Blair North Auger Geochemistry Plan:

Magenta = >10ppb Au, blue triangles = RAB/Aircore drilling, small circles = geochemistry sampling points.

During September 2011, results were received for surface auger geochemistry programs completed to the west of George’s Reward. Conducted on a 100m x 100m spacing closing down to 50m x 50m spacing in areas of gold anomalism, the programs identified two areas of gold anomalism.

Anomaly 1 comprises several anomalies within a broad 2600 metre long by 500 metre wide corridor extending in a west-northwesterly direction from George’s Reward. The anomalies are low order, defined by gold values greater than 10ppb Au with peak values between 25 and 30 ppb Au. Immediately west of George’s Reward, NMI has previously completed rotary air blast (RAB) drilling (100 metre spacing) and limited reverse circulation (RC) drilling across a portion of this anomaly with no reported intercepts. This group of anomalies trends across geology and NMI is uncertain of their significance. Field reconnaissance is planned to investigate this broad low order gold anomaly.

Anomaly 2 comprises a coherent 600 metre long by 200 metre wide northwest trending gold anomaly (contoured at 10 ppb Au threshold) with a peak value of 53 ppb Au. The anomaly, 3.2 kilometres northwest of George’s Reward, occurs in an area adjacent to a zone of structural disruption and dislocation identified in the aeromagnetics. This zone is considered to be highly prospective for gold mineralisation. Planning for a RAB drill program across this anomaly is in progress.

George's Reward, Southern Zone:
An initial inferred resource estimate of 375,000 tonnes @ 1.89g/t au for 22,850 ounces gold amenable to open pit mining remains open at depth and along strike. Mineralisation commences 7 metres from surface and there is considerable potential to increase resource with deeper drilling. Outstanding gold intersections open at depth and along strike: 66m @ 2.9g/t Au, 43m @ 3.4t/t Au, 45m @ 0.9g/t Au, 24m @ 1.6g/t Au, 42m @ 2.7g/t Au, 20m @ 1.3g/t Au. Mineralisation confirmed from surface to 200m below surface. Coarse, free gold.

George's Reward Cross Section:

Gold Mineralisation Blair North showing 4 zones of mineralisation and almost 2kms untested between George's Reward and Northern Zone:

Blair North, Northern Zone Gold:

Four distinct zones of bedrock gold anomalism defined by maximum gold in bedrock greater than 0.5g/t Au, including 700m trend of high grade mineralisation defined by RC and RAB drilling. Open to northeast and unconstrained in other directions.

Induced polarization (IP) survey reveals new geophysical anomalies and additional gold potential.

Diamond drilling in January 2011 revealed considerable potential for large mineralised body with high grade gold shoots, enveloped in a low grade gold halo.

Wide, lower grade halo extends to south of Northern Zone, within ~900m George's reward.

New drilling (diamond and RC) will be planned to target gold resources in vicinity of largely untested 600m x 200m IP anomaly A.

Blair North E25/268 Nickel:
RC drill testing of a massive nickel sulphide target, identified from a downhole TEM survey undertaken in hole BNRC008 earlier in the year, intersected significant nickel sulphides, assaying up to 4.4% Ni, in two of three holes drilled in the programme. The recent soil sampling programme revealed several areas anomalous in nickel with peak values of 2181ppm abd 1078ppm Ni. Follow-up RAB drilling in October 2009, encountered 22m @ 0.18% Ni, 464ppm Cu. This equates to a bedrock response for magmatic nickel sulphides.

Nickel Sulphide Occurence E25/268 showing 8m @ 1.8% Ni: