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Paterson - WDLAC Exploration JV Agreement

In addition to the areas outside the Rudall River national park, De Grey, through wholly owned subsidiary Winterwhite Resources Pty Ltd, has applied for six exploration licences totalling 3,116 sq km within the park. The applications cover areas of the Rudall Complex of the Paterson Orogen prospective for uranium, base metal and gold mineralisation, and are centred about 35km south of the Kintyre uranium deposit. Several occurrences of uranium, gold and base metals were identified by previous explorers in the 1990's but were not evaluated further due to access difficulties at the time.

De Grey tenements and major mineral deposits in the Paterson area, WA.

Winterwhite has entered into a Land Access and Mineral Exploration Agreement with the Western Desert Lands Aboriginal Corporation (WDLAC), the body that represents the Martu People. The agreement facilitates and supports Winterwhite's applications and lays out agreed protocols for the conduct of any future mineral exploration in the area.

The Company has also entered into a Heads of Agreement for an exploration Joint Venture with WDLAC. That agreement, combined with the earlier Land Access and Mineral Exploration Agreement, commits WDLAC to supporting the grant of the tenements and sets out the conditions under which mineral exploration may proceed.

The Joint Venture commences upon grant of the tenements which, in turn, depends upon conclusion of negotiations between WDLAC and the WA State Government over the conditions that will apply to Martu's title proposed under the Indigenous Conservation Title Bill 2007.