Key highlights include: · Extensional drilling in footwall zone at Cinnamon continues to deliver impressive results · Best downhole intercepts include; o DBDRC0017: 31m at 3.80g/t Au (from 98m) § Incl. 21m at 5.04g/t Au (from 104m) o DBDRC0021: 18m at 2.16g/t Au (from 125m) § Incl. 5m at 3.92g/t Au (from 131m) · Work on scoping study suspended in favour of growing resource base with further drilling planned at priority targets including Trident, Cinnamon, Prickley's West and Skyhawk · Drill rig currently completing an additional 14 holes at Cinnamon to follow up on the recent impressive gold intercepts in the footwall zone Drilling Program The Company is pleased to report results received from recent RC holes completed at Cinnamon, K1 and Keillor East. Cinnamon Results from the first 8 holes completed at Cinnamon have been received. The majority of these holes were designed to further evaluate the substantial zone of gold mineralisation (now referred to as the Footwall Zone) previously reported in Dampier's ASX release dated 7 February 2011. The current results continue to extend and enhance the Footwall Zone. In particular, the Company is encouraged by the results from hole DBDRC0017 which returned a near true width intersection of 31m at 3.80g/t Au including a higher grade core of 21m at 5.04g/t Au. An additional 14 RC holes are planned to be drilled at Cinnamon during June to further outline the extent of the Footwall Zone. Keillor East At Keillor East, 8 holes were drilled to test a series of previously untested IP chargeability geophysical targets adjacent to the K1 and K2 resources. All the holes successfully intersected significant widths of silica-pyrite alteration typical of the mineralisation hosting the K1 and K2 deposits. While only anomalous gold results were returned further detailed work is planned over these and several other promising geophysical targets. Scoping Study Update Preliminary output from the open pit scoping study currently in progress on the K1, K2 and PPP resources has demonstrated that the application of conservative forward gold price assumptions results in sub-optimal levels of ore production and an unattractive return on capital employed. The Company has therefore elected to suspend further work on the scoping study in favour of accelerating the evaluation of its other priority resource targets (in particular Trident, Cinnamon, Skyhawk, Prickley's West) to generate the economies of scale required to lower unit production costs. The Company remains focused on becoming a gold producer. However, margin pressures due to rapid input cost increases (fuel, labour), the as yet unknown impact of a carbon taxand the pegging of the gold price by a strong Australian dollar has led the Board to conclude that it would be more prudent at this time to continue growing the project's resource base in favour of embarking on an expensive infill drilling campaign at K1, K2 and PPP in expectation of a higher Australian dollar gold price.

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