The VALMIN Code

1 code for theTechnical Assessment and ValuationofMineral and Petroleum Assets and SecuritiesforIndependent Expert Reports~ The VALMIN code ~2005 EditionPrepared by:The VALMIN Committee, a joint committee of The Australasian Institute ofMining and Metallurgy, the Australian Institute of Geoscientists and theMineral Industry Consultants Association with the participation of theAustralian Securities and Investment Commission, the Australian StockExchange Limited, the Minerals Council of Australia, the PetroleumExploration Society of Australia.

2 The Securities Association of Australia andrepresentatives from the Australian finance for the Technical Assessment and Valuation of Mineral and Petroleum Assets and Securities for Independent Expert Reports (The VALMIN code ) 2 The Australasian Institute of Mining and Metallurgy The VALMIN code is binding on members of The AusIMM when preparing publicindependent expert reports required by the Corporations Act concerning mineral andpetroleum assets and securities. Australian Institute of Geoscientists"The Australian Institute of Geoscientists supports the VALMIN code and endorsesit as a statement of industry and professional best practice.

3 The VALMIN code isbinding on members of AIG when preparing public independent expert reportsas required by the Corporations Act covering mineral and petroleum assets andsecurities."Australian Stock Exchange Australian Stock Exchange supports the issue of the code and any serious breachesof which ASX is made aware will be brought to the attention of The AusIMM. Australian Securities & Investments Commission The Australian Securities & Investment Commission (ASIC) refers to the VALMINCode when reviewing mining and exploration prospectuses and takeover regards the code as indicative of best practice, and expects that when specialistmining terms used in the code are contained in such documents that they will havethe same meaning as in the code .

4 Compliance with the code does not relieve issuersand others involved in the preparation of prospectuses and takeover documents fromtheir broader disclosure obligations under the Corporations Act. Mineral Industry Consultants Association To be advised by Council of Australia The Minerals Council of Australia endorses the VALMIN code as a statement ofindustry and professional good practice and recognises that companies and issuersand others involved in the preparation of prospectuses and takeover documents arerequired to comply with their disclosure obligations under the Corporations Act andwith any requirements under Australia's International Accounting and ReportingStandards.

5 Securities Institute of Australia Securities Institute of Australia supports the code as indicative of best practice forindependent experts preparing valuations and assessments in relation to specialistmining WITH AND SUPPORT FOR THE VALMIN CODECode for the Technical Assessment and Valuation of Mineral and Petroleum Assets and Securities for Independent Expert Reports (The VALMIN code ) 3 TABLE OF CONTENTS CODESUBJECTCLAUSEPAGE of the CodeC 1 5 Preparation of the CodeC 25 DisclaimerC 35 TerminologyC 45 Fundamental PrinciplesC 55 Obligations of Valuation PractitionersC 6 105 6 Purposes of ReportsC 116 Applicability of CodeC 12 136 Types of ReportsC 146 7 MaterialityC 15 177 CompetenceC 18 237 IndependenceC 24 277 8 TransparencyC 28 318 Valuation MethodologyC 328 The Commissioning EntityC 33 369 Experts

6 And SpecialistsC 37 419 10 Commissioning a ReportC 42 4310 Intention of a ReportC 44 4510 11 DeclarationsC 46 4811 Cost of a ReportC 4911 Content of a ReportC 50 11 Data and InformationC 51 5411 12 Referring to Existing ReportsC 55 5712 Nature of ValueC 58 6112 Illustrations C 6212 AdministrationC 63 6413 Site InspectionsC 65 6613 TenementsC 67 7313 14 Mineralisation.

7 Resources and ReservesC 74 8214 15 Mining and Ore ProcessingC 83 8815 16 Capital and Operating CostsC 89 9316 Completion and CommissioningC 9416 RevenueC 95 9616 17 Finance C 97 10017 Share Market and Economic ConditionsC 101 10217 RiskC 10317 code for the Technical Assessment and Valuation of Mineral and Petroleum Assets and Securities for Independent Expert Reports (The VALMIN code )

8 4 DEFINITION OR ACRONYMNUMBERPAGE 119 Advanced Exploration Areas D 2021 AIGD 219 AssetD 20 and 2621 and 22 ASICD 319 ASXD 419 AusIMMD 5 19 Commissioning EntityD 619 Competence/CompetentD 719 Corporations ActD 819 Development ProjectsD 2021 Disclosure DocumentD 919 Expert and SpecialistsD 1019 Exploration Areas D 2019 Fair Market ValueD 4323 Fairness and Reasonableness ReportD 1120 General Mining or Petroleum Industry ExperienceD 1220 Independent/IndependenceD 1320 Independent Expert ReportD 1420 JORC code D 1520 Listing Rules D 419 Material/Materiality D 1620 MCAD 1721 MICAD 1821 MineralD 1921 Mineral Assets D 2021 Mineral Resources and Ore ReservesD 2121 Mineral or Petroleum SecuritiesD 2221 Mining/Petroleum IndustryD 2321 Operating MinesD 2021 Pre-Development ProjectsD 2021 PESAD 2422 PetroleumD 2522 Petroleum AssetsD 2622 Professional AssociationD 2722

9 Public ReportsD 2822 ReportD 4223 Reasonableness Test D 2922 Risk D 3022 Securities D 3122 Senior Specialist D 1019 SIAD 3222 SPED 3322 Specialist D 1019 Technical Assessments D 34 22 Technical Assessment Reports D 3523 Technical Value D 36 23 Tenement D 37 23 Transparency/ TransparentD 3823 Uncertainty

10 D 39 23 Valuation D 4023 Valuation DateD 4123 Valuation Report D 4223 Value D 4323 Vendor Consideration Opinion D 44 23 WPCD 45 23 DEFINITIONS and ACRONYMSCode for the Technical Assessment and Valuation of Mineral and Petroleum Assets and Securities for Independent Expert Reports (The VALMIN code )Note: Procedural and mandatory clauses and paragraphs are in normal typeface, except that the word must is in bold,discretionary clauses and paragraphs are in italicsand those Definitions incorporated in the text of the code are in bold.