Exploration Potential

The Company believes the Exploration Potential on its current Mining Licences is at least 4-5 million ounces of Gold.

Between 1995 and 1998 the Company conducted an extensive program of Drilling and Trenching at the Morning Star Hill site directly above the Morning Star mine and following this program, stated a Resource Potential for the Morning Star Mine from surface down to Level 8. This resource statement is not ratified under the current JORC guidelines but further modeling and exploration is being undertaken now to ensure a resource statement for the program area can be JORC compliant in the near future.

The historic estimate of resource referred to in the 1998 report by Morrie Goodz MSc, MBA, MAusIMM was around 430,000 ounces of Gold. (See pdf link at bottom of page).

Interim JORC Resource Statement by Morning Star Gold - Planned for July 2008  ## DELIVERED JULY 2008 ##

Morning Star is working hard digitising old mine records left behind by GMA. In addition our intensive drilling program at present is intended to add to our overall in situ resources. An interim statement of resources will be made in July 2008 by MCO. At this time a statement of the potential endowment of Morning Star's overall tenements will also be made. Click on this link for a graphic depicting some of the work being done - in this graphic, work on the 'V-Floor' of the Morning Star mine (the 'V-Floor' was extensively developed but only mined to a small extent by GMA in the 1950s.

Resource Definition - 'V-Floor' (0.55 Mb)

Additionally, MCO is hopeful that further exploration potential can be proved in its many Regional Dykes, which historically produced rich returns of high grade gold above the water table only. The first three priority dykes being prepared for further exploration via sampling programs and drilling are the Waverly, All Nations and Tingha Dykes which collectively produced around 250,000 Ounces of Gold in mostly shallow workings at high grade.

Currently Morning Star is finalising permitting issues on two of the above drill-sites. Surface Diamond Drilling expected to commence Q2 2008.

Historic (pre-JORC) stated resources at Morning Star mine can be found in this report:

June 1998 Morning Star Resource Report (242.77 Kb)