Drilling continues on the Broulan Reef gold project with Hole BR08--2 now at 1,040 metres. The hole continues in the felsic pyroclastic sequence of rocks. The Balmer assemblage host rock has not yet been encountered but is expected within the next 200 metres.

To date, the drill contractor has utilized 11 removable wedges in hole BR08-2. The wedges are necessary to maintain a minimum of deflection in the mother hole. It is the Company's intent to keep the hole as straight as possible (approx. 285 degree azimuth). The direction of the hole is paramount to the encountering as much of the Balmer assemblage as possible. With a relatively straight hole being completed, this will allow the Company to conduct several angle holes (wedged holes) from the original mother hole. The ground that is being drilled is proving to be very hard rock to penetrate. This has slowed the anticipated completion of the mother hole. However, the drilling is proceeding in a timely fashion and will be drilled to a proposed depth of about 2200 metres.