| Turner River Iron Exploration Project |

OVERVIEW

• The figure below shows the proximity of Mt Dove Iron to Port Hedland. Being located just 12km west of the Great Northern Highway and 69km from Port Hedland, Mt Dove is a potential iron resource of value to De Grey.

Mt Dove prospect location map, 31 st December, 2007.

• In a reconnaissance sampling program, 25 samples were collected from outcropping BIF from over a total (folded) strike length of 800m. Twenty-one samples returned grades above 55% iron at an average of 59.7% and to a maximum of 62.5%.
  
  
• Samples containing below 55% iron were collected from minor deposits of surficial secondary ferricrete. Iron grades of the in situ hematitic BIF samples were consistently above 55% iron over the 600m x 80m area sampled, as shown in the figure below.

Mt Dove rock sampling iron results on aerial photograph, 31 st December, 2007.