During the quarter the Company continued to consider options for its Second Fortune mining project.

The company has received interest from several parties in relation to either acquiring the project outright or participating in a joint venture with Anova Metals Ltd. Access to the project data room has been provided to these parties for due diligence purposes and discussions are continuing with certain parties. The Company will keep the market updated on any developments with any of the interested parties.

The Second Fortune project is currently on care and maintenance whilst project evaluations are being undertaken. During the period the camp site was occupied by a mining contractor which helps reduce a component of the fixed site costs. A small drill program was conducted in the period on historic dumps, results from the program are still to be assessed.

BIG SPRINGS

The Big Springs divestment process continues to be led by experienced Canadian resources advisors Haywood Securities Inc. During the quarter interested parties continued to access the data room and with on-going discussions being held. Several alternate options are also being investigated including joint venture arrangements, farm-in and merger opportunities. The gold price improvement has created further interest in the project since the initial divestment strategy was announced.

There is no certainty that the process will lead to the divestment of the Big Springs Gold Project and any agreement, once entered into, will be disclosed and be subject to any necessary regulatory approval process including any approvals required by the ASX. During the quarter, the annual prepayment of royalties was paid for the project, which is included in exploration expenditure, as well as on-going environmental monitoring.

CORPORATE

Anova received $175,000 from Matsa Resources Limited (ASX:MAT) from exercising their option to acquire the Devon group of tenements. Proceeds from the option conversion were used to reduce the debt facility.

The Company continues to maintain reduced expenditure where possible and together with the recent disposals, provides sufficient financial capacity for the Company to meet its current financial obligations whilst maintaining the core Big Springs and Second Fortune tenements.

Contact:

Tel: +61 8 6465 5500

Fax: +61 8 6465 5599

Email: info@anovametals.com.au

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