The highly-weathered ultramafic body has an oval shape with the 1000 m. axis open at both ends and at depth. It was delineated through a preliminary program of shallow auger holes and channel sampling of pits and trenches which commenced in September, 2005. A total of 56 holes were hand-augered to an average depth of 6.87 m. The holes were widely spaced to cover the large area encompassed by the nickeliferous ultramafic body. In addition, several pits and trenches were dug for sampling.

A total of 409 samples were taken as part of this preliminary program. After sample preparation in the Company’s laboratory in Antananarivo, the samples were sent to ALS Chemex RSA in Johannesburg, S.A. for assay. Results were highly encouraging, returning a highest value of 2.6% Ni over 2 m. A total of 109 samples throughout the ultrabasic body returned values > 0.5% Ni, with 13 samples returning >1.0% Ni. The nickel is associated with minor disseminated chromite and magnesite, as well as traces of cobalt. The body is open at depth since samples taken by hand augers, pitting and trenching reached a maximum depth of 10 m.

This mineralized ultramafic body appears to be associated with several other similar untested ultramafic bodies the Company has now identified within the Nickel Valley permit area. Starting in the dry season in April, the Company intends to undertake a more comprehensive trenching and mechanized shallow drilling program to further evaluate the size and tenor of the body discovered at Nickel Valley. A deeper diamond drilling program will be carried out to evaluate the nature and Ni content of the underlying peridotite host rock below the nickeliferous laterite. A comprehensive regional sampling program will also be undertaken to start evaluation of the other ultramafic bodies which have been identified on the property.

The Nickel Valley Project is being managed by Francois J. Lampietti, B.S. Mining, M. Sc. Economic Geology. He has over 30 years experience in international exploration, including work for companies such as Anglo American Corp.of S.A.; Cominco; Asarco; Homestake; Newmont; Bema Gold and Warburg Pincus . Mr. Lampietti resides in Virginia, U.S.A. Dr. Peter Christopher of Peter A. Christopher & Associates of Vancouver, B.C., Canada has been engaged to prepare an independent engineering report on the prospect in accordance with National Instrument 43-101.

Roger Billington, P.Geo., has recently joined the Company’s nickel team as a Senior Geological Consultant and will be participating in the site visit as well as development of the exploration program. Mr. Billington brings over 25 years of international exploration experience, including extensive work in identification, evaluation, exploration and development of nickel laterite opportunities worldwide. He served as Manager of Laterite Exploration for Falconbridge from 1995 through 2002. The Company’s Nickel Valley Project is managed by Francois J. Lampietti, B.S. Mining, M.Sc. Economic Geology.