Hedland/Goldsworthy Project

Background and Geology

The Hedland project consists of three exploration licences and an application for an exploration licence proposed to be acquired 100% by Shaw River. This will also allow access via the sealed Marble Bar to Port Hedland Highway which transects the project.

The Hedland project covers a belt of ground approximately 50 kilometres in length and up to 20 kilometres wide that trends north east to south west.  The tenements are bound by the Mallina and Tabba Tabba shears to the west and east respectively.  Both these structures and crustal scale faults are widely accepted to be key contributing factors in the formation of local gold and base metal deposits at Turner River, Indee, Wingina Well, Orchard Well and Supply Well.

Shaw River's tenement E45/2569 overlies this projected extension and the intersection of the Tabba Tabba and Mallina Shear Zones. In August 2007, the first ever air-core drilling program was completed over the projected position of the greenstone belt. A total of 150 holes for 2543m were drilled and a total of 1685 samples (composited to 4m in overburden, 1m samples in regolith and bedrock) were collected and submitted for multi-element analysis (Au, Ag, Cu, Pb, Zn, As, Ba, Mo, Ni, Se, Te and U).

In November 2007 the announced results from initial RC drilling at Shaw River had received gold assays from the first RC holes drilled at Hedland. Best results included:

• 1m at 6.65 g/t gold from 36m in STRC013
• 2m at 1.15 g/t gold from 47m in STRC006
• 8m at 0.69 g/t gold from 130m including 3m @ 1.54g/t gold from 133m in SCRC012

Location

The Hedland project lies approximately 42 kilometres south east of the town of Port Hedland, in the Pilbara region of Western Australia. Surrounding infrastructure includes sealed highway access to Port Hedland. The Goldsworthy Project is located 10km north east of the Hedland Project.

Recent Activity

Exploration update for Hedland and Goldsworthy includes:

• Completion of 5,485m of RC and 11,373m of RAB/Aircore drilling since July 2007 focused on follow up testing of soil and previously drilled gold anomalies.
• Encouraging drilling results  received from shallow 1,040m of RAB drilling  in August 2008 over a 300m width, encountered elevated gold  with 20 adjacent anomalous gold intersections >0.1 g/t Au on the Mallina Shear Zone at the intersection with the Tabba Tabba Greenstone Belt.
• Drilling focused on testing 20 soil sampling targets over an 8km target area.  Drill logging confirms strong correlation between anomalous gold and arsenic in soils and mineralisation in drilling.
• Untested gold targets remain over 9km of strike.
• Soil sampling programs over the adjacent Goldsworthy Project 10km north east of the Hedland Project has generated multiple new zinc and gold drill targets under shallow cover not previously identified or tested.