Withdrawal of IPO Prospectus

            20 January 2011

Dear Shareholder and Investor,

Withdrawal of Prospectus

The Company wishes to advise that on this date it has withdrawn its Prospectus Offer dated 15 November 2010 which was prepared for its IPO and proposed listing on the ASX.  

Accordingly, the Offer has closed and the Company will not be accepting further applications for shares under the Offer, which previously had been due to close on the extended date of 31 January 2011.  The Company’s application to join the Official List of the ASX also has been withdrawn.

All application monies that have been received will be refunded in full.  As stated in the Prospectus, no interest is payable on refunded Application monies.

The Directors determined to close the Offer early after considering the advice of the Company’s  Advisors, Austock Securities Limited (Lead Manager to the Offer) and Sinonew Capital Advisory of Beijing.  The level of Applications received was significantly below that required to enable the minimum subscription level of the Offer to be reached.  This response occurred despite an active IPO marketing program within Australia and in selected international markets.

The Directors are very disappointed at this outcome.  We are cognizant of the desire of many shareholders for listing to occur, and we intend to re-examine the prospect of listing the Company at a future date and will remain alert to other opportunities that could lead to providing a market for the Company’s shares.

We are aiming to make the Company more attractive to a wider investor audience.  The Company is fortunate in having a strong management team and a number of corporate shareholders who have expressed a willingness to inject further equity into the Company in its unlisted form.   This additional funding, when confirmed, will enable us to continue exploration work at our Omitiomire copper project.  Our immediate focus will be on further drilling with the objective of expanding the inferred copper resource at Omitiomire rather than on completing a Definitive Feasibility Study at this time. 

If we are successful in expanding the resource at Omitiomire substantially above the existing level of 579,000 tonnes of contained copper (at a cut-off grade of 0.25% Cu), Directors believe that the value added should help to make Omitiomire and the Company more attractive to both the IPO market and potential joint venture partners.

We thank those shareholders and new investors who participated in the Offer even though it did not have a successful conclusion.

Yours sincerly

James Macdonald

Chairman