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Location:

40 km from the capital city of Kuching, in Sarawak, East Malaysia.

Principal Minerals:

Gold, silver, copper, molybdenum.

Exploration Stage:

Advanced. Extensive geological, geophysical and geochemical surveys and diamond drilling have systematically investigated a series of highly prospective well defined mineralization zones.

Overview:

Operating since 1864, the Bau Goldfield has recorded 1.5 million oz of gold production, with estimated historic production of more than 3.0 million oz gold. Regional analogies and exploration results to date indicate significantly greater undiscovered targets.

Equity:

Zedex has 50.05% controlling interest and is project operator in Joint Venture with the Malaysian mining group, Gladioli Enterprises SDN BHD.

Tenure:

Consolidated Mining and Exploration tenements collectively cover more than 828 km2 of the most highly-prospective ground within the Bau Goldfield.

Geology:

Identified mineralization environments include the following:

• Porphyry-gold-copper-molybdenum and related skarn deposits.
• Carbonate replacement gold deposits (Carlin Style).
• Tectonic breccia-hosted gold deposits.
• Epithermal quartz-carbonate vein deposits.

Key Results:

Current JORC status resources: 1.612M oz gold plus identified geological targets possibly containing a further 4.4 to 4.75M oz of gold. Examples of significant deposits that have to date been partially explored include:

• Jugan Sector:

  Carbonate replacement style mineralization (670,000 oz gold) [9.22Mt @1.66 g/t Au (indicated), plus 2.514Mt @ 2.20 g/t Au (inferred)].

• Pejiru Sector:

  Carbonate replacement style mineralization (497,000 oz gold) [8.576Mt @ 2.24 g/t Au (inferred)].

• Sirenggok Sector:

  Porphyry gold style mineralization (310,000 oz gold). [7.185 Mt @ 1.23 g/t Au (Inferred)].

• Bekajang Sector:

  Historic mine tailings: (135,000 oz gold). [1.291 Mt @ 1.332 g/t Au (indicated), plus 1.878 Mt @ 1.332 g/t Au (inferred)].

• Tabai Sector:

  Extensive quartz-breccia style mineralization. Fault hosted mineralization up to 20m thick, extending along 1,200m of strike. Selected drill intercepts include: DH104-87 (11.10m @ 5.9 g/t Au); DH104-9 (38.70m @ 25.85 g/t Au); DH104-111 (9.70m @ 12.97 g/t Au); DH104-112 (9.20m @ 43.76 g/t Au); DH104-116 (19.50m @ 5.49 g/t Au); DH104-151 (35.50m @ 4.93 g/t Au).

• Juala Sector:

  Porphyry Cu-Mo style mineralization. This is a virgin discovery. Best intercept to date is 5.0m @ 1.58 g/t Au, 4.44 g/t Ag and 0.77% Cu (in hole JWDDH10), yet to be followed up.

Ongoing validation of historic drilling and in-fill drilling during 2009 is expected to progressively convert much of the identified geological resource targets (4.4 to 4.75M oz of gold) into JORC status resource.

During 2009, the company aims also to examine the feasibility of generating early cash flow from zones that are considered amenable to rapid low-capex development.

Beyond the Bau Gold Project, the Joint Venture also holds a number of regional exploration tenements, covering 1,236.38 km2 of highly prospective, but relatively unexplored terrain in Sarawak.

Photo Gallery: Bau Project Photo Gallery

Competent Person JORC Statement Scientific or technical information in this news release has been prepared under the supervision of Rod Murfitt, Chief Geologist of the Company and a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Murfitt has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person, as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code). Mr Murfitt consents to the inclusion in this report of the information, in the form and context in which it appears. The information in this report relating to the Bau JORC resource is based on information compiled by John Ashby who is a fellow of the Australasian Institute of Mining and Metallurgy and who is employed by Ashby Consultants Ltd. John Ashby has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to resource estimation to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.” John Ashby consents to the inclusion in the report of the matters based on His information in the form and context in which it appears. Reference to geological resource potential is based on information announced on October 15. Geological resources are conceptual in nature and insufficient exploration has to date been completed to allow estimation of a mineral resource, as defined in the JORC code. It is uncertain whether further exploration will result in the determination of a mineral resource.;