Ojolali Gold-Silver Project

The Ojolali Project comprises 5,921 Ha of Exploration KP concessions in Lampung Province in Sumatra. Finders holds a 71.7% interest in the project through its subsidiary, Way Kanan Resources Pty Ltd, in partnership with Great Northern Resources (22.8%), and PT Batutua Kharisma Permai (5.5%).

Finders has an option to purchase 100% of the project on completion of a feasibility study. Finders controls the entire Ojolali mineral district which comprises over 20 named prospects located in gently rolling countryside within the Sumatran gold belt in Indonesia.

The individual prospects comprise a complex of high level epithermal gold-silver vein systems currently known within an area approximately 8km north south and 4 km east west within the Finders controlled KPs.

Finders acquired the project in 2005 and has since carried out an extensive exploration programme with the two-fold aim of establishing an initial mining resource at the Jambi oxide gold prospect, and also defining the potential of the remaining area for additional discoveries.

Finders exploration has included surface mapping, detailed ground geophysics, including pole dipole induced polarization (IP) and ground magnetics (25 km2 ), composite soil sampling (35 km2), and an ongoing programme of follow up surface trenching and channel sampling of target areas, including extensive sampling of local miner workings.

Resources

Based on diamond and reverse circulation drilling by Finders, Hellman and Schofield Pty Ltd has independently estimated resources of approximately 140,000 oz gold at the Jambi oxide gold deposit, as detailed in the table below.

The Jambi resource remains open to the north, west, southwest, north-east and at depth. With a hill-top location and favourable metallurgy, Jambi has potential for mining as a low stripping ratio open cut.

An additional Inferred Resource of 7.9m tonnes at 167 g/t Ag and 0.7 g/t Au (using a 1 g/t Au equivalent cut-off) containing approximately 40 million ounces of silver and 170,000 oz of Au, based on drilling by other companies, has been previously announced for part of the 2.5km long Tambang vein system.

Finders' current exploration strategy is to increase the oxide gold resource to +300,000 oz Au equivalent, to provide the basis for a low cost 30-50,000 oz gold per year open pit mine based on the Jambi oxide resource, and to use the cash flow from this plant to fund exploration for additional resources and progressive expansion of the project.

Potential for Additional Discovery

With widespread local miner activity for gold and strong gold in soil geochemical anomalies over an area so far 8km north south and up to 5km wide, Finders considers that there is strong potential for additional discoveries, including a number of target types:

• Bulk low grade disseminated gold (Jambi, Jambi North, Jambi West and Belida prospects)
• High grade Ag in supergene enriched zones (Tambang supergene and Jambi supergene zone)
• Bonanza grade gold-silver vein targets (Way Neki, C1, Kencur, Batu Kuning and Suban prospects)
• Major vein systems in feeder structures at depth (Tambang, Talangharno).

Current Exploration

Current exploration at Ojolali is focused on increasing the potentially open pit resource from 140,000 oz Au to at least 300,000 ounces gold equivalent to underpin development of an economically robust start-up mining operation.

Prime targets for additional mineralization are lateral and depth extensions of the current Jambi resource, and the near surface, part oxidized portions of the Tambang gold-silver vein system, where intersections from limited previous drilling indicate strong enrichment of silver values around the base of oxidation.

Tambang Prospect showing target areas on IP resistivity image

Competent Person Statement

The information in this report that related to exploration potential, mineral resource and ore reserve estimation is the responsibility of Dr Russell Fountain.  Dr Fountain is a Director of Finders and a Fellow of the Australian Institute of Geoscientists.  Dr Fountain has sufficient experience that is relevant to the styles of mineralisation and types of deposits under consideration and to the activity that he is undertaking to qualify as Competent Person in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) and as a Qualified Person as defined in the AIM Rules.  He consents to the inclusion in this report of the matters based on his information in the form and context in which they appear.  All assaying of drill core samples was undertaken by the ITS laboratory in Jakarta.  ITS is one of the world's largest product and commodity testing, inspection and certification organisations.  The Jakarta laboratory is ISO 17025 accredited and employs a Laboratory Information Management System (LIMS) for sample tracking, quality control and reporting.