Chairman's Report

Dear Fellow Shareholder,

Welcome to Morning Star Gold’s 2008 Annual Report.

The company has spent 2008 moving from explorer to mine developer and production hopeful. In the process we were 
imminently at the period end, unveiling a very respectable JORC Gold Resource. Our Maxwell Pilot Mining Program announcement of earlier this year has accelerated plans to produce gold in eastern Victoria for the first time in 50 odd years.

Over the past year, we increased infrastructure spending on our marquee asset, the Morning Star mine at Woods Point near Melbourne. We also continued to up scale our mining tenement holdings in the Matlock - Woods Point – Gaffney’s Creek area and we finally ratified Victoria’s first Indigenous Land Use Agreements with the National Native Title Tribunal.

Your company completed substantial exploration via underground diamond drilling and channel sampling in the ‘Gap Zone’ of the mine and diamond drilling at surface on the exciting new 100% held prospect, the Waverly dyke. Our drilling programs were largely carried out using company owned equipment purchased over the year by MCO and by company staff rather than contractors. We have a very loyal local group of staffers who are mostly long term Woods Point area residents.

Morning Star also completed a review of its overall endowment across its tenements in
order to prioritise exploration and resource development over the coming years. A great deal of surveying and mapping of regional dyke targets was done. These regional dykes were historically all yielders of high-grade gold from mostly shallow workings, so hold
great promise.

Morning Star was privileged to welcome to the board of directors, our chief geologist Dr Peter Jackson BSc PhD MAIG, who has extensive experience in eastern Victoria’s hard rock gold fields.

Thank you for being loyal shareholders of the company over 2008, we look forward to more positive news as we gear up our production opportunities, in the coming year. The Managing Director’s Report and Review of Operations will now give you more complete updates on the Woods Point Gold Project.

 

Max Garling 


Chairman