Compass is pursuing active exploration programs in new and established mineral fields in the Northern Territory, New South Wales and Peru. Our exploration programmes are underpinned by significant exploration expertise which has seen Compass achieve considerable success from our exploration activities.

Principal exploration efforts are focused on the Rum Jungle Uranium and Base Metals Mineral Field in the NT, selected by Compass over two decades ago for its significant potential for multiple discoveries and on gold and base metals in NSW.

At Rum Jungle, exploration is focused on:

* Defining supplementary oxidised base metals resources at existing deposits to    provide incremental feed for the Oxide plant,

* Identifying new oxidised base metal resources,

* Extending the Browns sulphide deposit at depth to the west,

* Exploration for additional sulphide ore bodies such as Mt. Fitch South,

* Exploration for gold and Platinum Group Metals (PGMs).

Uranium

In addition to being prospective for base and specialty metals, the Rum Jungle area is highly prospective for Uranium. Compass recognised this potential when the first tenements were acquired, securing projects with high combined Uranium and base metal potential. This land position was significantly expanded with additional Uranium exploration tenements in 2005, ahead of the large industry move to secure projects with Uranium potential. This strategic decision has yielded numerous exploration targets.

Compass' Rum Jungle tenements include Australia's first Uranium mines which operated from the 1950s to the 1970s. Priority exploration in late 2005 and 2006 of the Mt. Fitch Uranium prospect resulted in the announcement of a JORC defined resource of 14.5 million lbs U3O8, confirming that the area is highly prospective for further Uranium discoveries with additional exploration.

NSW Gold and Base Metals

In New South Wales the Company's main advanced exploration projects are in the Parkes/Forbes gold belt. These tenements include a royalty over the Wyoming gold deposit and a large area of exploration ground surrounding it, including the new Caloma gold discovery.

Compass is also pursuing a conceptual exploration programme in a new frontier area of Western NSW. The Company acquired substantial extensions to its tenements.following initial encouraging results from two wildcat holes.

A major airborne magnetic and radiometric survey has been completed defining additional drill targets.

Exploration Studies

In addition to exploring in known mineral fields, Compass is active in a targeted programme of grass roots exploration. The ongoing analysis of newly available exploration geoscience data coupled with Compass' regional exploration expertise allows for the refinement and evolution of our exploration targeting programme, and ultimately yielding new and exciting exploration targets.