ATTAPULGITE

The deposit is very large - 21kilometre by 2.5kilometre mining tenement (Lake Nerramyne Western Australia - 2.5 hrs NE of Geraldton) The Company’s high-grade attapulgite deposit is situated at Lake Nerramyne which is 137 kilometres north east of Geraldton, Western Australia. The measured reserves of the deposit are 4 million tonnes and inferred reserves 10 million tonnes. The total area covered by our mining leases is approximately 52.5 square kilometers of which a large part is still unexplored.

Test drill programs conducted in the mining tenements resulted in a determination that the proven reserves are 4 million tonnes, inferred reserves 10 million tonnes and potential for finding more is likely to be ‘inexhaustible’.

The deposit (a special sedimentary rock layer several metres thick) is geologically special and rare (one could say ‘unique’ in certain aspects) because of:

° only very minor compaction because of small thickness of sediment that was deposited above the ore layer, so that loose packing of particles was preserved, resulting in relatively very high natural porosity and high absorptive capacity for water, cats pee as well as hydrocarbons

° reasonable cementation by natural processes, resulting in a sedimentary rock of certain compressive strength which increases after drying in sun and drying in oven at 90-100 degree Celsius

Special natural characteristics of the lithified / cemented sedimentary rock that represents the ore layer at Lake Nerramyne are preserved in fragments of ore after crushing and provide the foundation for current uses / products and for new uses / products to be developed in future. The fragments are more valuable than the powdery fines however there may be many future uses for the fines, including making of light weight masonry products comprised of a blend of fragments and fines.

ILLUSTRATIVE PROPERTIES

CHEMICAL PROPERTIES	Typical Value %	PHYSICAL PROPERTIES	Results
Silica Dioxide	59.5	Appearance	Powder
Aluminum Oxide	12.6	Colour	Light buff/grey
Magnesium Oxide	5.6	Particle Size	Passing 300 um – 90% Average 160 um
Iron Oxide	4.0	Moisture (when packed)	3%-8%
Calcium Oxide	2.1	Loose Bulk Density	0.45-0.70 g/cm3 (450-700 kg/cm3
Potassium Oxide	1.8	pH (5% suspension)	7.5-9.5
Other Oxides	2.0	Absorption (% w/w) Water Oil	80-120 70-110
Loss of Ignition	12.1	Surface Area (m2/g) Cation Exchange Capacity	135-140 30-40 meq/110g