Coyote Gold Project Drill Programs

2007 DRILLING PROGRAMS

A diamond drill program which commenced in April 2007 included a number of diamond core drill holes into the Muttley lode at Coyote to achieve a higher level of confidence in the tonnes and grade of that lode and to test for extensions of the lode which is open along strike.

The infill diamond core drilling program into the high grade Muttley Lode was completed in late May 2007 with visible gold encountered in six of the eight holes drilled.

Drill hole CYDD0156 returned 0.8 metres at 252.85g/t Au from 224.5 metres which has confirmed the continuity of the very high grade central core of the Muttley Lode.  (For further assay results for the Muttley Lode infill drilling program refer to Table 1 in ASX announcement dated 28 June 2007).

Since completion of the Muttley program, additional diamond core drilling has been completed at Coyote targeting extensions to known lodes including Gonzales and Buggsy and at the Road Runner prospect located 8 kilometres south of Coyote. (Assay results are pending).