Region:		Western Australia
Commodity:		Au
Project Name & Location:		Fraser Range North
Target Deposit Type & Model:		>1 million ounce intrusion related gold
Land Status:		3 Exploration Licences
Ownership:		100% AusMF (Part of the Tropicana Alliance Agreement with between Teck-Cominco and Australian Mineral Fields)

In June 2007, Australian Mineral Fields successfully completed the grant process for three exploration licenses along the northern margin of the Fraser Ranges, about 150 km east-northeast of Norseman and 275 km southwest of AngloGold Ashanti / Independence Group's Joint Venture Tropicana Discovery (See Figure 1). The tenements are also approximately 60km southwest, and interpreted to be along strike from AngloGold Ashanti / Independence Group's recently announced "New Gold Discovery" at the Beachcomber 1 Prospect, where 1km x 200m spaced AC drilling intersected 3m @ 65.8g/t from 25m. (see Idependence Group NL Quarterly report Dec-2006 at www.igo.com.au) The Fraser Range North tenements are subject to the Tropicana Alliance Agreement with Teck-Cominco Australia Ltd.

The project area comprises approximately 775 square kilometers of the Yilgarn Craton-Fraser Range Mobile Belt Collision Zone, in the southeastern part of Western Australia. Access is via the Baldonia road east from Norseman. Tenure occurs variously as open scrub and brush land, with substantial outcrop in the area of the Fraser Ranges at the southern part of the project area.

Figure 1: Location plan for Fraser Range North tenements over combined gravity (colour) and magnetics (texture) image.

CONCEPTUAL TARGET PLAY FOR TROPICANA STYLE MINERALIZATION

The Company considers its Fraser Range North Project to be a conceptual target play, as was Tropicana, and will be exploring for a similar style of mineralization. Drilling at Tropicana intersected gold mineralization associated with intense pyritic and sericitic hydrothermal alteration cross-cutting a package of metamorphic rocks. (See Tropicana JV Update 18-Aug-2005 at www.igo.com.au.) The AngloGold Ashanti / Independence Group JV are likewise targeting a multi-million ounce gold deposit and announced an Australasian Joint Ore Reserves Committee (JORC)-compliant resource in December 2007 of 4.05Moz Au (62.8Mt @ 2.01g/t Au at a 0.6g/t Au cut-off). (See Independence Group NL news release 3-Dec-2007 at www.igo.com.au.)

GEOCHEMISTRY RESULTS

The Geological Survey of Western Australia (GSWA)1 conducted a surface sampling program in the Fraser Range region in 1998 at approximately 4 x 4km spacing. The sampling covered a large proportion of AusMinFields' tenements (Figure 5), and several anomalous areas were defined within the Project area.

DRILLING RESULTS

Drilling was conducted over four main target areas at line spacings of between 1km and 400m, with holes spaced at approximately 200m along lines (see inset in Figure 2).  The drilling program returned the following significant results:

• 1m @ 1.38 g/t Gold (Au) from 49m in FRA211
• 1m @ 1.19 g/t Au from 53m in FRA233

The significant intersections are both from the Similkameen Prospect area where several other low level but elevated gold values (>5ppb Au) were returned from composite samples (See Figures 2 and 3).

Figure 2: Location of drill holes in the Fraser Range North Similkameen prospect area showing maximum gold values in ppb for each hole over a total magnetic intensity image.

Figure 3: 6496760N drill section showing the significant gold intersection of 1.7g/t

The Company considers these results to be extremely significant given the early stage of exploration, and comparable to recently reported results by other explorers in the province.

Table 1: All drilling intercepts greater than or equal to 10ppb Au²

*All intercepts quoted are down hole depths, true widths are not known.

Table 2: Summary of Composite and Re-split samples from the Similkameen Prospect^2,3

FUTURE WORK

The first pass drilling program at the southern anomaly was completed at 400m line spacing, and 200m hole spacings. It is planned to infill this drilling coverage to outline supergene target zones for potential Reverse Circulation drill testing of the primary sources of gold mineralisation. It is also planned to extend line coverage to both the north and south of those currently drilled. The infill and extension Aircore program is anticipated for October 2008.

Figure 4: Geological interpretation of the Fraser Range North area with a summary of the targets generated from Australian Mineral Fields' soil geochemical sampling.

Below, Figure 3 shows arsenic values from the GSWA¹ sampling over the region;

Figure 5: GSWA1 soil sampling in the Fraser Range area, Arsenic values (ppm)

Project Borders AngloGold Ashanti's Holdings

Figure 6: Fraser Range North tenements location relative to the extent of AngloGold Ashanti and Independence Group's tenement.

Figure 7: Schematic cross-section showing target model for the Fraser Range North Project, regionally located close to the leading edge of the Albany-Fraser Mobile Belt which on-laps onto the Archaean Yilgarn craton. Crustal thickening and magmatism along the suture maybe important in the ore forming processes.

¹ Morris, P.A., Sanders, A.J., McGuiness, S.A., Coker, J., and King, J.D., 2000, Geochemical mapping of the Fraser Range region: Western Australia Geological Survey, 1:250,000 Regolith Geochemistry Series Explanatory Notes, 45p. (ISSN 1321-229X). In this reference, refer to Appendix 4 (page 36) for description of quality control procedures and methodology.

² 4m composites were collected for each hole and samples were submitted for analysis for Au (gold) and As (arsenic) to Genalysis in Kalgoorlie (4m composites assayed for gold by aqua regia digestion, graphite furnace atomic absorption spectrometry, detection limit 1ppb). Composites were collected using a metal scoop by Company staff from 1m samples laid out on the ground by the drilling contractors. All samples were bagged, checked and sealed on site and then transported to the Kalgoorlie Genalysis sample preparation facility, by Company staff.

³ 1m re-splits were collected where 4m composite samples returned anomalous gold values. Samples were submitted for analysis for Au (gold) to Genalysis in Kalgoorlie (re-splits assayed for gold by fire assay followed by graphite furnace atomic absorption spectrometry, detection limit 1ppb). Re-splits were collected using a metal scoop by Company staff from 1m samples laid out on the ground by the drilling contractors. All samples were bagged, checked and sealed on site and then transported to the Kalgoorlie Genalysis sample preparation facility, by Company staff.