QUARTERLY REPORT FOR THE PERIOD ENDED DECEMBER 31, 2007 HIGHLIGHTS KIPOI PROJECT • Initial JORC resource for Kipoi Central expected to be available in early February. • Testwork confirms viability of setting up a Heavy Media Separation process at Kipoi producing 32,000 tonnes of blister Copper per annum. • 4 Diamond and 1 RC drill rigs operating on site conducting resource and exploration drilling of highly prospective zones at Kipoi Central and Kipoi North. • 44 diamond holes (KPCDD058 to KPCDD101) and 6 RC (KPCRC001 to KPCRC006) holes completed at Kipoi Central for a total of 5,435m and 654m respectively. • Significant results received during the quarter include: Kipoi Central o KPCDD029: 133.5m @ 6.4% Cu o KPCDD032: 67.5m @ 5.0% Cu and 0.1% Co o KPCDD034: 109.0m @ 5.0% Cu and 1.0% Co o KPCDD037: 11m @ 8.9% Cu and 75.8m at 5.3% Cu (0.1% Co) o KPCDD038: 106.0m @ 6.7% Cu and 0.2% Co (including 12.6m @15.8% Cu, 0.5% Co) o KPCDD041: 61.5m @ 5.0% Cu and 0.1% Co o KPCDD044: 79.5m @ 6.7% Cu (including 4.5m @ 22.4% Cu) o KPCDD049: 70.6m @ 3.4% Cu (including 5.5m @ 15.4% Cu) o KPCDD051: 10.0m @ 4.0% Cu and 42.0m @ 1.4% Cu o KPCDD056: 46.0m @ 3.5% Cu and 0.2% Co o KPCDD057: 82.0m @ 4.3% Cu and 0.4% Co (including 5.5m @13.5% Cu and 1.4% Co) o KPCDD065: 10.5m @ 3.7% Cu and 0.1% Co Kipoi North o KPNDD010: 24.0m @ 1.1% Cu and 0.1% Co o KPNDD014: 15.1m @ 2.5% Cu Kipoi West and Kipoi Central West o Exploration and drill results indicate that mineralisation extends over a significant area.