Mindarie Zircon Project - Australia Zircon NL

MINDARIE ZIRCON PROJECT:

Estimates of the Mineral Resources and Ore Reserves for the Mindarie Project as at 30 June 2008 and reported in the Australian Zircon 2008 Annual Report are tabled below. These estimates have been classified according to the JORC Code guidelines (The Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, Joint Ore Reserve Committee 2004).

RESOURCES

Mineral Resource Estimates1 (1.0% THM cut-off grade) as at 30 June 2008
	Millions of Tonnes	Total heavy minerals %	Slimes %	Mineral Assemblage
	Millions of Tonnes	Total heavy minerals %	Slimes %	Zircon2 %	Leucoxene3 %	Rutile4 %	Ilmenite5 %
Measured	43.3	3.6	10.6	21.9	6.1	5.1	63.9
Indicated	127.4	3.1	10.1	17.8	6.6	4.6	66.3
Inferred	5.3	3.3	9.0	17.0	5.1	3.9	67.2
Total	176.0	3.2	10.2	18.8	6.4	4.7	65.7

RESERVES

Ore Reserve Estimates (Variable cut-off grade) as at 30 June 2008
	Millions of Tonnes	Total heavy minerals %	Slimes %	Proportion of mineral within heavy mineral component
	Millions of Tonnes	Total heavy minerals %	Slimes %	Zircon %	Leucoxene %	Rutile %	Ilmenite %
Proved	24.0	4.4	10.8	23.9	6.3	5.1	62.5
Probable	34.1	4.2	11.1	19.3	6.5	4.6	66.4
Total	58.1	4.3	11.0	21.2	6.4	4.8	64.8

Notes: Mineral proportions assigned to resource block models. These proportions are derived from combined physical magnetic and densimetric separations and chemical analyses for leucoxene, rutile and ilmenite on composited THM samples. Zircon proportions estimated on chemical analysis of one-meter samples intervals and composited single-hole drill samples. The Mineral Resource and Ore Reserve estimates include data based on 45μm and 63μm grain sizes

Note 1: Mineral Resource estimates are inclusive of Ore Reserve estimates.

Note 2: Zircon content estimated using THM ›45μm and XRF data.

Note 3: Leucoxene estimated as TiO2 in the ›4.05SG fraction of 12000 gauss non-magnetic fraction of ›45μm THM for Mindarie A L2 and ›63μm THM for the other deposits.

Note 4: Rutile estimated as TiO2 in the ›4.05SG fraction of 12000 gauss non-magnetic fraction of ›45μm THM for Mindarie A L2 and ›63μm for the other deposits.

Note 5: Ilmenite estimated using 8000 gauss magnetic and non-magnetic fractions, Ilmenite estimated as ›45μm THM% 'mags+mids THM%' for Mindarie A L2 and ›63μmTHM% 'mags+mids THM%' for the other deposits. It is recognised that not all of the 'mags+mids THM%' is ilmenite and based on the TiO2 content of the 'mags+mids THM%' it is estimated that ~9% of this may not be ilmenite

The Mineral Resource and Ore Reserve statements have been respectively compiled by Mrs. Christine Standing and Mr Ron Secis of Snowden Mining Industry Consultants. Mrs. Standing and Mr Secis are members of The Australasian Institute of Mining and Metallurgy and both have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mrs. Standing and Mr Secis consent to the inclusion in this report of the matters based on the information in the form and context in which it appears.