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Crystalhaven Project

The Mungana tenements are located within the Georgetown Inlier, and 25 km south-west of the Red Dome Mine. Red Dome (pictured below) was a copper-gold mine with over 24 million tonnes of ore extracted and reflects the polymetallic regional geology showing copper-gold skarns, tin and wolfram veins, quartz vein hosted gold, copper-molybdenum-fluorite-quartz veins and epithermal precious metals. Recently, Kagara Zinc Limited have proven up an additional 45 million tonnes of gold-silver-copper resource within the region.

The regional geology and QNRMW data on the Victory Mine suggest mineralization of an exposed porphyry molybdenum-fluorite-copper-tin-tungsten system in the region and may be a priority target for extraction of copper and gold skarn deposits. High levels of alluvial tin and gold have also been historically mined from the region surrounding the Crystal Brook Volcanic Neck.

Exploration Plan

The eastern region of the Mungana tenement encompasses the Crystalbrook volcanic neck (“The Neck”). The Neck appears to be under explored, and based on the historic reports of tin, tungsten and gold being sourced from the creeks leading from the volcanic neck itself.

The Neck contains a polyphasic igneous intrusive complex, the youngest having visually distinct topology and a number of gold prospects associated to it. There are also tin and tungsten occurrences in the margins between the igneous complex and the metamorphics. Both of these indicators will be investigated using the one exploration program.

Strategy

A high-density rock chip and soil geochemistry program will commence in the third quarter of 2007, along with a complete analysis for precious and base metals. KML believes The Neck represents a gold target that will be advanced in the second quarter 2008.