Exploration - Overview

Western Tanami

The Company's Western Australian tenements contain many highly prospective targets identified from previous exploration programs and recent target generation studies. These targets include high grade vein intersections located immediately below the current Coyote Mine workings, down-plunge extensions to lode style deposits in the Bald Hill area and advanced regional prospects hosting significant gold mineralisation within trucking distance of the Western Tanami treatment plant.

Central Tanami

The exploration potential of the entire Central Tanami Project tenement holdings is considered by the Company to be exceptional. Over and above the mineralised trends within the current Mineral Leases, the Exploration Licence areas host in excess of 90 strike kilometres of favourable host lithologies that have been subject to minimal historic deep sub-surface exploration. These areas are prospective for both high grade lode gold and bulk tonnage deposits and will be intensively explored in line with the Company's target ranking and prioritisation process.

ABM Resources NL (Tanami Gold NL 21%)

On 21 December 2009 the Company announced that it had completed the sale of its interest in its Northern Territory tenements to ABM Resources NL (ABM) which will see ABM explore for gold, copper and other minerals in the highly prospective Tanami-Arunta Province in the Northern Territory of Australia.

Tanami Gold's 23.7% fully diluted interest in ABM gives the Company excellent exposure to a large highly prospective land package in Central Australia, as evidenced by ABM's announcement of their inaurgural Resource estimate of 1.7m ounces of gold.