ELSMORE TIN PROJECT

The Elsmore project is based on ELs 6196 (“Elsmore”), 7177 (“Macintyre”) and the northern part of EL 7349 (“Kings Gap”), all of which are held 100% by Malachite. These tenements are located in northern New South Wales, about 20km east and southeast of Inverell and about 25 km northeast of the Company’s Conrad silver project. The two ELs cover approximately 450km² but exclude the Elsmore Tin Mine, which occupies about 2.5 km² of land, with attaching mineral rights, in the northern part of EL 6196. The Company explored this land under an option agreement with the current owner in 2004 but allowed the option to lapse when results obtained at the Elsmore mine were found to be inferior to those obtained on the Company’s own ground.

The Elsmore mine was the first commercial tin mine in Australia and has produced tin from various alluvial deposits intermittently since 1871. Newstead, located 5km southeast of the Elsmore mine, has a similarly long history of mining but appears to have been less extensively worked over the years. Newstead is currently the focus of the Company’s exploration at Elsmore, with particular emphasis on a tin-bearing paleo-alluvial deposit, known as the Karaula Lead.