Tasmanian Projects Overview

MINEMAKERS' AIMS

Minemakers aims to resume profitable mining and treatment of tungsten and tin around the old production centres and from previously discovered but unmined deposits. It will concentrate upon open cut operations and employ modern selective mining and metallurgical practices.

PROJECTS

THE ROSSARDEN DISTRICT

The Rossarden district contains the town of the same name, which serviced the Storey's Creek and Aberfoyle mines, the town of Avoca on the main east coast highway and also the village of Royal George which is adjacent to the old mine of that name. It is a strongly mineralized district with numerous additional prospects for tin, tungsten, uranium, coal and base metals. Minemakers intends initially to assess the main old mines, and the uranium potential, then to seek for new deposits utilising modern exploration methods.

The aim is to develop open cuts over the old Aberfoyle and Storey's Creek underground mines which are separated by 3km.

It is envisaged that a common mill would treat material from both deposits and, depending on relative metal prices on the day, production could be preferred from either Storey's Creek (which is tungsten-rich) or Aberfoyle (which is tin-rich). The Lutwyche underground mine would be brought on stream as the pits mature, and the Royal George open cut would provide supplementary feed which would be trucked to Rossarden. Modern exploration will seek buried deposits.

COMMODITIES

Tin, Tungsten, potential by-product base metals.

TUNGSTEN AND TIN PRICE OVERVIEW

After the collapse of the tin producer cartels in the early 1980s, the tin price declined. However, it rose strongly in 2003, and in 2006 the price doubled. Tin's future now seems assured. It is generally considered that the long-term outlook for tin is very positive as identified supplies seem less than projected demand and there is already a significant supply deficit. Until recently, the tungsten price has been fairly stable, with China supplying most of world demand; however, in 2005 that country was not able to do so and prices have increased dramatically. Minemakers has a positive view on the future tungsten price in light of world consumption growth, Western mine closures and Chinese export limitations.

TENEMENTS AND EQUITY POSITION

Minemakers purchased outright Allstrong Investments Pty Ltd which wholly owned granted Exploration Licences 27/2004, 28/2004 and 29/2004. Application has subsequently been made for EL59/2007. Minemakers also purchased 55M/1989 over the historic Anchor mine.

AUSTRALIAN SIZE CONTEXT

This area of north eastern Tasmania is Australia's premier combined tungsten and tin mining field and Minemakers' tenements cover all of its major hard-rock mining centres.

HISTORY AND OUTLOOK

The Rossarden or Avoca (containing Storey's Creek and Aberfoyle), the Upper Scamander and the Anchor or Blue Tiers mining centres in the tenements have historically produced from hard-rock mining about 25,000 t of tin and 18,000 t of tungsten. At recent prices of A$20,000/t for Sn, and A$180/metric tonne unit of tungsten oxide (WO₃), this equates to a value of over A$800M. Production spanned the interval from 1891 to 1982. Tin quotas in the 1980s and then prolonged weak tin prices caused closure of the mines and the abandonment of the patchwork of smaller tenements which had characterized these mining centres. With minor exceptions, Minemakers has obtained clear title to all of the major centres and deposits in the district. While Minemakers initially intends to concentrate on the old mines, from an exploration viewpoint, in due course this will allow the Company to seek further deposits by modern exploration methods without the encumbrance of a fragmented landholding. Significant prospects are evident from the historical reports and plans and exploration success will lead to production longevity.

The Company has signed a Memorandum of Understanding with the Austrian tungsten miner and products manufacturer, Wolfram Bergbau-und Hutten-GmbH Nfg.KG (“WB”), and it is anticipated that it will lead to a Joint Venture covering the development of Rossarden should tungsten drill results prove sufficiently attractive.

CURRENT RESOURCES AND MINERALIZATION

Further details are presented in the discussions on the individual deposits.