RIVERTREE SILVER PROJECT

The Rivertree project comprises an exploration licence (EL 5714) of 13 units, covering about 40 km², located in north eastern NSW, 55 km northeast of Tenterfield and just to the west of Tooloom. The licence is held by Malachite and incorporates numerous old mines and prospects. Historic production took place prior to 1925 and ceased due to ore processing difficulties with the technology of the day and lack of interest at the time in zinc.

In November 2004 Malachite entered into a joint venture agreement with Macmin Silver Limited under which Macmin purchased an initial 60% interest in Rivertree and later earned a further 15% interest.

Sampling of dumps at Rivertree has tended to confirm the high grade, polymetallic nature of mineralisation, with substantial values in silver (100-2500 g/t Ag), gold (0.5-8.5 g/t Au) and zinc (up to 20% Zn), and accessory to significant values in lead, copper and tin.

Very little modern exploration has been conducted at Rivertree. Reconnaissance drilling by Malachite and Macmin intersected mineralised veining and/or alteration in discrete lode structures up to 4 m wide, some with potentially economic grades of silver mineralisation.

In 2008 Macmin went into administration. In 2009 the company emerged from administration, renamed as Alcyone Resources Limited (ASX Code: AYN).

Alcyone has reactivated exploration at Rivertree and plans to drill some of the more promising lodes in 2010.