RED METAL EXPLORATION IN PROGRESS:

Mount Isa Inlier
Maronan J.V. - drilling by BHPBilliton Minerals is targetting Broken Hill or Cannington type targets.  Recent drilling at Maronan has intersected encouraging widths of moderate-high-grade silver-lead mineralisation, including 14.1 metres @ 11.4% lead and 176 g/t silver from 501 metres depth.  Further drilling is planned for 2008.

McKinlay J.V.  - drilling by BHPBilliton Minerals to date has intersected broad zones of Broken Hill type alteration with anomalous silver, lead and zinc values at the Breena Prospect.  Drilling on a 200 metre wide zone of alteration at Breena prospect has returned encouraging lead and silver intercepts including 6.6 metres from 646.55 metres depth at 4.1% lead and 39.9 ppm silver.  Further investigations are planned for 2008.

Western Valhalla Uranium Project - new tenements targeting uranium radiometric anomalies located 12 kilometres west of the Valhalla uranium deposit, north-west of Mount Isa.  Like the Valhalla anomaly, the radiometric targets within the Western Valhalla Project trend in a north-north-westerly orientation and are hosted within the Eastern Creek mafic volcanic unit. First-pass field verification and drill target definition are planned for 2008.

Corkwood Project - Phelps Dodge Australasia, Inc. commenced funding a drilling program during late 2007 testing a range of IOCG targets including a deep drillhole below a wide zone of copper-gold mineralisation at Jimmy's Creek Prospect.

Other Projects - gravity targets proximal to copper mineralisation at Taldora and Elizabeth Springs projects are due to be drilled in the 2008 field season.  Additional IOCG targets defined following regional gravity surveys over several other projects.

Sedimentary Hosted Uranium Projects
Recognition of the potential for Sedimentary Hosted uranium deposit types in new target settings has lead to an expanded uranium focus in South Australia and the Northern Territory.  Roll-front type uranium targets in a similar geological setting to the Beverley Uranium Mine and Four Mile Prospect have been defined on the Lakes Project and Algebuckina Project.

A widely spaced regional drilling program on the Algebuckina Project has identified anomalous levels of uranium and vanadium mineralisation in targeted Mesozoic sedimentary units and the underlying weathered basement rocks, which support target models.  Results from this first pass program are considered encouraging given the wide drill spacing.  Anomalous uranium and vanadium values are also observed in target units surrounding the Beverley uranium mine and Four Mile prospect.  Airborne EM surveys were conducted in late 2007 to map basement topography and potential uranium trap sites in preparation for drilling in 2008.

Gawler Craton
Pernatty Lagoon J.V. - several untested gravity targets in an alteration setting identical to the Carrapateena copper-gold-uranium discovery less than 50km to the north where Teck Cominco recently announced an impressive intercept of 905 metres at 2.1% copper and 1g/t gold.  The project is 8 kilometres west of the Ground Hog copper sulphide drill intercept announced by Monax Mining Limited.  A recently completed eight hole program intersected encouraging broad zones of intense sericite-tourmaline alteration, a zone of hematite breccia and a wide interval of low-grade lead-zinc-copper mineralisation interpreted as a possible distal halo to copper mineralisation. Follow-up drilling is being planned.

Robins Rise J.V. - In late 2006, Red Metal, in alliance with Phelps Dodge Australasia, Inc. formed a farm-in joint venture with Stellar Resources Limited on its Robins Rise copper-gold project located 100 kilometres north-west of the Prominent Hill copper-gold deposit within the Gawler Craton.  Processing of the expanded gravity survey has highlighted several anomalies which are considered prospective for copper-gold mineralisation.  Drilling is planned for early 2008.

Peake Denison J.V. - Late-stage overprinting hematite alteration, considered a regionally prospective indicator of copper mineralisation, was intersected during the 2005 drilling program and an expanded gravity survey was completed during 2006 to map possible hematite breccia targets.  Several low magnetic, high gravity anomalies targeting hematite associated copper-gold-uranium mineralisation have been defined for basement drilling in 2008.  Precollar drilling has been completed.

Ooldea Projects - group of tenements covering the northern and southern extension to the prospective beach strand line which hosts Iluka Resources new zircon-rich heavy mineral sand discoveries in the Eucla Basin, as well as higher shore lines interpreted to the east.  A joint venture with Rio Tinto Exploration Pty Limited conducted initial test drilling on the Watraba project in June 2006 however no economically significant results were discovered.  Planning is in progress for an aircore program following-up anomalous heavy mineral sand concentrations in historic drill holes on the Barton tenement, including 10 metres from 24 metres with 1.45% heavy minerals and 4 metres from 22 metres with 3.81% heavy minerals.

Curnamona Craton
Frome J.V. - A step-out basement drillhole to follow-up encouraging copper mineralisation with associated hematite alteration at Quinyambie was completed in mid-2007.  Modelling of basement targets in the eastern half of the Callabonna tenement has highlighted four gravity targets prospective for IOCG style mineralisation.  A review of the uranium potential within the Tertiary cover sequences has identified possible channel sand facies within the prospective Namba Formation which hosts the Beverley uranium mine.  An airborne electromagnetic survey designed to map faults and channel sand positions was completed in late 2007 to map basement topography and potential uranium trap sites in preparation for drilling in 2008.

Tennant Creek Inlier
Regional gravity surveys over magnetic targets have been completed over accessible tenements.  A drilling program was conducted in late 2006 testing eight gravity and/or magnetic targets. No significant mineralisation was intersected however, a wide interval of red siderite±silica±talc alteration typical of minerals observed in a halo to copper and gold mineralisation was encountered in one hole.  A follow-up program is being assessed.