RELINQUISHMENT REPORT

EPM 14404

MIRAMBEENA

December 2006

Suite 41 Level 4 MILLHOUSE IAG SQUARE545 Queen Street BrisbanePh: 07 3831 3544 Fax: 07 3831 3522Email: admin@kingsminerals.com KINGS

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Table of Contents

INTRODUCTION..............................................................................................................................................3TENEMENT......................................................................................................................................................3NATIVE TITLE..................................................................................................................................................4GEOLOGY.......................................................................................................................................................4WORK COMPLETED.......................................................................................................................................6

Table of Figures

Figure 1 Project Location.................................................................................................................................3

Table of Plans

Plan 1 Regional Geology

Plan 2 Regional Magnetics

Plan 3 Regional Gravity

Plan 4 Regional Radiometrics

Plan 5 Regional Stream Sediment Au

Plan 6 Target Location and Reconnaissance Sampling

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INTRODUCTIONEPM 14404, Mirambeena, was granted to Mt Dockerell Mining Pty Ltd (a 100% subsidiary of Kings

Minerals NL) on October 13th 2004 for a period of five years. The tenement is composed of 100 sub-

blocks and is located 75 kilometers southwest of Townsville in North Queensland.

Figure 1 Project Location

The tenement is being relinquished to allow Kings to focus its exploration activities on the Mount Isa

Block.

The tenement has potential to host:

porphyry style gold mineralization similar to Mt Leyshon and Kidston;

shear zone hosted gold deposits of the Charters Towers and Ravenswood type;

epithermal gold deposits similar to Pajingo and Vera Nancy.

TENEMENTEPM 14404 is comprised of 100 sub-blocks totaling 322 square kilometers (Table 1, Figure 1). The tenement

is one of 15 contiguous applications totaling 4,000 sq km which makes up the Ravenswood Project.

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Table 1 Tenement Definition

BIM BLOCK Sub-blocks

TOWN 3122 R V W X

TOWN 3193 D E J K O P U

TOWN 3194 A B C D F G H J K L M N O P Q R S T U V W X Y Z

TOWN 3266 A B C D E F G H J K L M N O P Q R S T U W X Y Z

TOWN 3267 A B C D E F G H J K L M N O P Q R S T U V W X Y Z

TOWN 3338 B C D E

TOWN 3339 A B C D E F G H J K O P

NATIVE TITLEEPM 14404 was granted in October 2004 using the Native Title Protection Conditions. Subsequent to the

granting of the tenement the Gudjala People lodged a Claim in early 2005 (QC05_006) over the entire

Ravenswood Project. A project wide agreement was finally reached with the Gudjala People in July

2006.

GEOLOGYEPM 14404 is principally underlain by shallow marine sediments of the Dotswood Group that are folded

into broad domal structures. The sediments have a faulted contact in the south onto the River View

Granodiorite (Silurian to Devonian age) and display a temporal unconformity with the Ordovician Lavery

Creek Granite to the east.

The northeast trending Keelbottom Lineament crosses the northern end of the tenement area. This

structure is believed to have been an active growth fault from the Ordovician though to at least the

Carboniferous. Orthogonal to this lineament and occurring on the eastern margin of the tenement is the

Alex Hill Shear Zone, a broad northwest trending zone of deformation occurring within the Late Cambrian

to Early Ordovician granitic basement and dated at 464-426 Ma.

Small high level intrusive complexes are known at a number of locations, including Mt Keelbottom. These

are of Carboniferous to Permian age and consist of both intrusive and extrusive rhyolitic variants. The

known occurrences of gold mineralization at Mount Keelbottom are associated with these high level

plutons.

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Table 2 Geologic Summary

Rock Unit Age Lithologic Summary Rock Type

DominantRo cktype

Map_ Symbol

CPir- Kennedy Province

Carboniferous- Permian

Mainly buff, pale grey to dark grey or brown, aphyric to highly porphyritic, intrusive rhyolite; commonly flow-banded; locallygrades into microgranite

Intru

Felsites (Lavas, Clastics & High-LevelIntrusives)

Cpir

Hardwick Formation

Late Devonian - Carboniferous

Grey mudstone, lithofeldspathic sandstone, fossiliferous sandy limestone and calcilutite, and cherty mudstone

Strat Sedimentary Rock Dckh

Lollypop Formation

Late Devonian - Early Carboniferous

Pebbly quartzose to polymictic conglomerate, pebbly feldspathic sandstone (locally fossiliferous), and minor grey siltstone, mudstone, and fossiliferous limestone

Strat Arenite- Rudite Dkl

Myrtlevale Formation

Late Devonian - Carboniferous

Green to grey, fossiliferous mudstone, fine to medium-grained feldspathic to lithic sandstone and minor sandy limestone; abundantplant fossils

Strat Arenite- Mudrock Dkm

Julia Formation

Late Devonian

Medium to coarse-grained feldspathic to quartzose sandstone, polymictic conglomerate, and red calcareous mudstone and siltstone

Strat Sedimentary Rock Ddj

Stud Formation

Late Devonian

Red calcareous mudstone and siltstone, fine-grained red to grey feldspathic sandstone, and minortuff and conglomerate

Strat Arenite- Mudrock Dds

Burdekin Formation

Early Devonian - Middle Devonian

Fossiliferous limestone (calcirudite, calcarenite, and lesser calcilutite); minor sandy limestone, calcareous sandstone and mudstone

Strat

Mixed Siliciclastic/Carbonate Rocks

Dfb

River View Granodiorite

Silurian - Devonian

Grey to light grey, fine to coarse-grained, porphyritic hornblende- biotite granodiorite

Intru Granitoid Sdgv

OSg/gd- western RavenswoodBatholith

Silurian?Probable granodiorite or tonalite with strong magnetic response; mostly not exposed

Intru Granitoid Osg/Gd

Lavery Creek Granite

Ordovician - Silurian

Pink to grey, medium-grained, locally foliated, slightly porphyriticbiotite granite; rare pegmatite, locally muscovite-bearing

Intru Granitoid Ogl

Blisters Swamp Granite

Ordovician

Light grey, fine to coarse-grained, hornblende-biotite granodiorite characterised by large quartz andK-feldspar phenocrysts

Intru Granitoid Ogbs

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WORK COMPLETEDAlthough field access was available to Kings under the Native Title Protection Conditions it was

considered “political” to restrict fieldwork in the area until a Project Wide Native Title Agreement was

signed with the Gudjala People. As such little field work was completed.

Desk top studies have included preliminary compilation of previous exploration data; purchase and re-

processing of regional magnetic, radiometric and gravity data; preparation of project base maps and

compilation of 1:100,000 scale geology over the project area.

Regional Magnetics

The Hodgkinson Basin- Georgetown Block D and Drummond Basin Airborne Survey data was acquired

from Geoimage. The located and gridded data was reprocessed by Arctan geophysical Services Pty Ltd

and provided to Kings as enhanced images (Plan 2).

Major lineaments and significant anomalies were identified and rated for ground follow-up. Two major

sets of lineaments transect the tenement. The northeast trending Keelbottom Lineament cuts through the

centre of the tenement. Orthogonal to this is a northwest trending structure parallel to the Burdekin River

and borders the Quaternary sediments to the west. A number of magnetic anomalies occur within the

tenement, some of which are known to concur with outcropping Permo-Carboniferous instrusives.

Regional Gravity

The regional gravity fabric is dominated by a significant northeast trending linear comparable to the

Keelbottom Lineament and two regional highs which may be related to the River View Granodiorite in the

southeast and the Blisters Swamp Granite in the northeast (Plan 3).

Regional Radiometrics

The radiometric fabric is dominated by northeast structures comparable with the gravity and magnetic

linears. A number of discrete radiometric anomalies occur within the tenement, two of which are directly

related to Permo-Carboniferous intrusives – specifically targets M-11 and M-12 (Plan 4).

Regional Stream Sediment Sampling

Regional Geochemical Sample data was acquired from TerraSearch. The data distribution is confined to

the central portion of the tenement within Devonian sediments (Plan 5).

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Target Identification and Reconnaissance Sampling

First pass evaluation of the regional data resulted in the identification of a number of geological /

geophysical targets, 14 of which occur within EPM 14404. Of these Anomalies M-4,5,7,8,12,14 & 20

were located and sampled during regional reconnaissance (Plan 6).

Anomalies 4, 5, 8, 12 and 20 are located on mapped Permo-Carboniferous intrusives. No anomalous

samples were recovered although intense iron alteration at Mt Keelbottom (Anomaly 20) was identified

but not sampled as it occurs within a Reserved Area. Narrow, shallow dipping quartz veins were

recorded at Anomaly 7 (Marlow).

The best result was returned from a Saprolite sample taken near Anomaly 14 (magnetic high) which

contained 17g/t Ag and 0.29%Cu with anomalous lead and zinc. Assays are attached.

Sample Number Description East North

4868 saprolite 415179 78129274869 pisolitic laterite 412638 78126774875 qfp 25x5m stock within arkose 416710 7814404

4876sheared arkose to sth 50x5m Fe &clay alt 415154 7813223

4877 gossan over 25m 415538 78127214878 rhyolite, patchy Fe alt 410352 78113274879 rhyolite, patchy Fe alt 410517 7811397

4880arkose, m.g. qtz rich ss, clay matrix, gossanous in part 408762 7811721

SampleAu-

AA25ME-

ICP41sME-

ICP41sME-

ICP41sME-

ICP41sDescription Au ppm Ag ppm Cu ppm Pb ppm Zn ppm

4868 0.003 17.4 2920 974 3144869 0.002 <0.2 57 62 204875 0.001 <0.2 44 16 824876 0.001 <0.2 42 31 354877 0.001 <0.2 39 46 1134878 0.001 <0.2 8 14 334879 <0.001 <0.2 7 11 374880 0.004 <0.2 35 21 21

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