HIGHLIGHTS (Quarterly report for the period ended 30 September 2008):

Mt Cattlin Lithium-Tantalum Project

• Bankable Feasibility Study (BFS) for the development of the Mt Cattlin tantalum and lithium project is progressing

• Lithium bearing pegmatite repetitions discovered at depth

• RC holes completed to the west and northwest of the deposit indicate the pegmatite is open in these directions

• Follow up RC infill and extension drilling program has confirmed further repetitions below the existing near surface pegmatite resource

• “Dowling Pit” area, west of Floater Road, has been indentified as the first area to be mined and expected to produce ore for the first five years of the operation

• An optimisation study on the Dowling Pit has been completed by Orelogy

• The processing and metallurgical testwork continued during the quarter helping further optimise the minerals plant flow sheet

• First stage approvals process is currently being progressed

Lithium Carbonate Project

• Sighting testwork by Outotec commenced during the quarter

• Calcination tests performed by Outotec demonstrated good conversion rates

• Leaching steps involving both the sulphuric acid and soda ash leach routes completed

Corporate

• Exercise of options on 30 September raises $0.7 million

Lithium News

• Billionaire investor, Warren Buffett’s Berkshire Hathaway announces investment in BYD Company Ltd, a Chinese battery and automaker planning on electric car production

• World’s top lithium producer, Chile's Soquimich announces expectations of growing demand and tight supply conditions in lithium markets ahead. – Press Release