CHAIRMAN'S OUTLOOK
(15 May 2008)

Directors would like to make some observations

1. ALLENDALE - drilling is set to recommence. Casing completed today to 91 metres, coring to begin tomorrow Friday 16th May.
   
2. GLENFINE - Directors have noted the government received no objections from any party, the next step depends on a response from government - expected soon
   
3. CLUNES - Directors have received an interesting and encouraging report from a petrologist, which is under consideration.

(24 April 2008)

RECENT ACTIVITY

CLUNES - MIN 5391
These two photographs provide some indication of the limited surface extent of a well known and substantial mineralised zone, Victorian style gold deposit.

In the above photo the rehabilitation area (at left) covers the southern part of the former New North Clunes gold mine. This area generated total dividends (paid) of £516,266, on a called up capital of £ 41,120. In today's figures that might be $120 million on outlays of $10 million.

From historic data, the nearer-to-surface portion of a much larger formation stretched a distance of some 800 metres, all north of Creswick's Creek. There is also a southern extent to this field, making a total reef formation of more than 2000 metres extent.

Mount Rommel have by drilling (2006/2007) found unmined gold in previously unsuspected internal sub-horizontal veins, with values sufficient to examine how development might occur. The Mount Rommel portion of the overall 2000 metres is about one-fifth, and sufficient for the foreseeable future.

In the above photo the illustration shows the environs in which the Company hopes and plans for a renewal to occur. The elements to be addressed for progress will emerge through meetings with the community prior to physical changes to this landscape.

ALLENDALE - EL 3821
This series of photos and illustrations defines for viewers the exploration objective.

Substantial exploration drilling in years 1996 to 2003 led to more clearly defined zones of exploration interest in the eastern part of the licence area. Drilling in 2006 (an aborted hole on 3 Chain Road) did provide practical reasons to pursue these objectives where the basalt thickness was materially less, further south.

Any considerations about gold distribution on the ancient surface near Allendale is required to generate an explanation for the significant quantity of gold won from the Ristori deep lead mine, and upstream of it, the De Murska etc. mines.
For example -

gold obtained, Ristori	104,224 oz
dividends paid	£200,400
royalty paid	£32,300

The other factor to note is that the level of erosion of the Ordovician surface at Allendale is more or less that of Ballarat. Thus gold distributed on the ancient surface, Allendale vicinity, could be regarded as having eroded from a system of veining with ultimate depths equivalent to those at Ballarat. For this reason, any geophysical signature needs to be of the order equivalent to one relevant to structures at Clunes and/or one of the lode structures of Ballarat.

That is - at a minimum, Mount Rommel have been seeking a geophysically active zone of at least 50 metres east-west width, extending to depth well beyond the oxidised ground probed as was in the Aberfoyle drilling program of 1996/1997, across EL 3821 and (then) west of the Ristori deep lead position.

The Zonge anomaly, Stag Road, is positioned within parts of EL 3821 where no exploration has taken place other than the stripping out of gold in the narrow deep lead known as Hawkin's.

Investors could note -

1. the shallow deep leads crossing or adjacent to this Stag Road IP/resistivity anomaly yielded gold in aggregate over 10,000 oz.
2. the coarsest piece on record is a 9 oz nugget from Hawkin's Lead, less than 50 metres south of the present drill site (reported 26 July 1875)

The following section looks north and is positioned south of the workings of the Hawkin's Company 1874 which led northwards towards the current drilling site. Gold was reported as freely seen in the washdirt of Hawkin's Lead.

The following section looks east along Hawkin's Lead -

Repetition of geophysical field collection procedures have confirmed an IP anomaly of sufficient extent to warrant investigative drilling. Three holes, percussion, have been completed 24/4/2008. One hole - see diagram - is to be extended by diamond core drilling, to probe a zone interpreted due to the presence of sulphides. In this environment, there is a real possibility of a repeat formation below that eroded to cause deep lead gold.
The photograph below looks south

The length along the line of gutter as worked between Hawkin's Co shaft and Stag Road is given in the records as 1500 feet. The graphic record of gold yields week by week for the Hawkin's Co appears below. The depth to wash at the shaft of that Company was 140 feet (42.6m). The aggregate yield is recorded as 5793 oz, which the graph demonstrate shows a marked concentration of values between 150 metres and 260 metres distance NNW from the Hawkin's shaft position. This information re gold is encouraging, given the data from geophysical survey work (see below) suggests a wide zone prospective for mineral accumulation.

For any investigation, it is (obviously) desirable to procure material for assessment from those places regarded as "most favourable". Hole H #2 (see below) is in such a position, and will be completed to depth by coring to 125 metres.

Arrangements have been made for follow-on diamond drilling, sufficient to complete the probe.

Shareholders please note : there is a time delay on samples going to assay/analysis. (A queue exists).

The level of excitement will begin to rise as and when analyses begin to indicate the mineralogy present in samples.

It should be noted that the IP work has also directed attention to a second location about 350 metres further west, which appears aligned with the BHP gold-in-soil anomaly. Work on that site has been deferred for the present.

GLENFINE - MIN Application 5492
This application is for the operation of a treatment plant.

The photograph below clearly indicates the present character of the site.

A comprehensive series of samples peripheral to this site (on the adjacent agricultural land) were taken in order to establish the present base-line environment, given that 100 years have passed since mine closure. No data is yet available from the laboratories for more recent sampling, including those for environmental purposes.

For any further information about this "Outlook" please contact directors at the Thomastown office.

Fred Hunt
Chairman
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