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FORM 43-101F1 TECHNICAL REPORT GEOLOGICAL EVALUATION, MULGA TANK NICKEL PROJECT, NORTHEAST GOLDFIELDS,WESTERN AUSTRALIA PREPARED FOR NEWPORT EXPLORATION LTD FOR SUBMISSION TO THE TORONTO STOCK EXCHANGE VENTURE EXCHANGE Authors: Steve Le Brun, MSc, BSc (Hons), MAusIMM, MMICA Allen J Maynard, BAppSc(Geol), MAIG, MAusIMM Company: Al Maynard & Associates, Suite 9, 280, Hay Street Subiaco, WA, 6008, Australia. Tel: +618 9388 1000 Date: 4 th July 2004
Transcript
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FORM 43-101F1 TECHNICAL REPORT

GEOLOGICAL EVALUATION,

MULGA TANK NICKEL PROJECT, NORTHEAST GOLDFIELDS,WESTERN AUSTRALIA

PREPARED FOR NEWPORT EXPLORATION LTD

FOR SUBMISSION TO THE

TORONTO STOCK EXCHANGE – VENTURE EXCHANGE

Authors: Steve Le Brun, MSc, BSc (Hons), MAusIMM, MMICA

Allen J Maynard, BAppSc(Geol), MAIG, MAusIMM

Company: Al Maynard & Associates, Suite 9, 280, Hay Street

Subiaco, WA, 6008, Australia. Tel: +618 9388 1000

Date: 4th July 2004

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Newport Exploration Ltd – Mulga Tank Technical Report

Newport Exploration Technical Report 2 July 2004 Page 1 of 23

TABLE OF CONTENTS

1 SUMMARY ..................................................................................................................... 4

2 INTRODUCTION AND TERMS OF REFERENCE.................................................................... 4

2.1 Terms of Reference .............................................................................................................. 4

2.2 Report Purpose ..................................................................................................................... 4

2.3 Information Sources .............................................................................................................. 4

2.4 Field Involvement .................................................................................................................. 4

3 DISCLAIMER .................................................................................................................. 5

4 PROPERTY DESCRIPTION AND LOCATION........................................................................ 5

4.1 Property Area ........................................................................................................................ 5

4.2 Property Location .................................................................................................................. 5

4.3 Claim Numbers ..................................................................................................................... 5

4.4 Property title .......................................................................................................................... 6

4.5 Tenement Surveying ............................................................................................................. 6

4.6 Outside Mineralised zones.................................................................................................... 6

4.7 Royalties, rights and encumbrances ..................................................................................... 6

4.8 Environmental Liabilities ....................................................................................................... 7

4.9 Permits Required for Exploration Work................................................................................. 7

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY... 7

5.1 Topography, elevation and vegetation .................................................................................. 7

5.2 Access................................................................................................................................... 8

5.3 Proximity to Population ......................................................................................................... 8

5.4 Climate .................................................................................................................................. 8

5.5 Surface conditions for mining................................................................................................ 8

6 HISTORY ....................................................................................................................... 8

6.1 Prior Ownership .................................................................................................................... 8

6.2 Past Exploration Work........................................................................................................... 8

6.3 Historical Mineral Resources ................................................................................................ 9

6.4 Production ............................................................................................................................. 9

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7 GEOLOGICAL SETTING................................................................................................... 9

7.1 Regional Geology.................................................................................................................. 9

7.2 Local and Property Geology................................................................................................ 10

8 DEPOSIT TYPES........................................................................................................... 10

9 MINERALISATION ......................................................................................................... 10

10 EXPLORATION ............................................................................................................. 10

11 DRILLING .................................................................................................................... 10

12 SAMPLING METHODS AND APPROACH .......................................................................... 10

12.1 Sampling Methods .............................................................................................................. 10

12.2 Factors Impacting the Accuracy of Results......................................................................... 10

12.3 Sample Quality.................................................................................................................... 11

12.4 Controls on Sample Intervals .............................................................................................. 11

12.5 Sample composites and true widths ................................................................................... 11

13 SAMPLE PREPARATION, ANALYSES AND SECURITY....................................................... 11

13.1 Related Party Sample Preparation...................................................................................... 11

13.2 Sample Analytical Methods................................................................................................. 11

13.3 Sample Quality Control ....................................................................................................... 11

13.4 Sample Adequacy ............................................................................................................... 11

14 DATA VERIFICATION .................................................................................................... 12

14.1 Quality Control .................................................................................................................... 12

14.2 Data verification .................................................................................................................. 12

14.3 Limitations to Data Verification............................................................................................ 12

14.4 Reason to Verify Data ......................................................................................................... 12

15 ADJACENT PROPERTIES .............................................................................................. 12

16 MINERAL PROCESSING AND METALLURGICAL TESTING ................................................. 12

17 MINERAL RESOURCE AND RESERVE ESTIMATES ........................................................... 12

18 OTHER RELEVANT DATA AND INFORMATION ................................................................. 12

19 INTERPRETATION AND CONCLUSIONS ........................................................................... 12

20 RECOMMENDATIONS.................................................................................................... 13

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21 REFERENCES .............................................................................................................. 15

22 DATE .......................................................................................................................... 15

23 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES............................................................................................... 15

24 ILLUSTRATIONS ........................................................................................................... 16

TABLE OF FIGURES

Figure 1: Northeast Goldfields – Location Plan 16

Figure 2: Northeast Goldfields Nickel Deposits 17

Figure 3: Mulga Tank Aeromagnetics 18

Figure 4: Minigwal dunite aeromagnetic anomaly showing drill hole locations 19

Figure 5: Line 18300E - Bedrock drilling 20

Figure 6: Line 18300E – Nickel sulfides were identified in the bedrock drill samples 21

Figure 7: Longitudinal drill section – showing diamond drill hole DD1A and bedrock drilling 22

LIST OF TABLES

Table 1: Claim numbers, liabilities and status................................................................................... 5

Table 2: Past exploration summary .................................................................................................. 8

Table 4: Assay intersections for Mulga Tank Nickel (source BHP Pty Ltd)..................................... 11

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Newport Exploration Ltd – Northeast Goldfields Project Review

Newport Exploration Technical Report 2 July 2004 Page 4 of 23

1 SUMMARY

This report details the geology and mineral potential of Joint Venture tenements managed by Newport Exploration Ltd (“Newport”) within the prospective Northeast Goldfields, Western Australia.

The project covers some 403km2 of Archaean greenstone terrain with good potential for dunite hosted nickel mineralisation.

The Mulga Tank tenements overlay portions of an extensive greenstone belt which includes the Minigwal dunite, a large, intense, circular, magnetic anomaly with an area of approximately 4 km in diameter. This anomaly has the characteristics for a major dunite hosted nickel sulphide deposit such as Mt. Keith which is also located in the Northeast Goldfields area of Western Australia.

Technical work undertaken by BHP at Mulga Tank in the early 1980s reported assay results of up to 2% nickel and defined an extensive zone of 0.2% - 0.5% Ni, which included 2,261m of shallow RC drilling, that remains open at depth in all directions.

An exploration program is set out to test some of the more advanced prospects by geophysical and drill testing methods. This exploration can be strongly focused and offers Newport an attractive opportunity to develop resources within an advanced exploration project. All dollar figures are in Australian dollars.

2 INTRODUCTION AND TERMS OF REFERENCE

2.1 Terms of Reference The writer has been requested by the Directors of Newport Exploration Ltd to summarize the geology and mineral potential of the Newport projects within the Northeast Goldfields region of Western Australia.

For the purposes of this report the writer is a ‘Qualified Person’ in accordance with National Instrument 43-101.

2.2 Report Purpose The writer understands this report is to be submitted to regulatory bodies and used by Newport to raise funds for the exploration of the project area.

2.3 Information Sources Information has been sourced from government authorities including GSWA (Geological Survey of Western Australia) and GA (Geoscience Australia; previously AGSO, Australian Geological Survey Organisation). Data sets of past exploration activity have also been utilized, as described elsewhere in this report. Details are contained within Item 23; References.

2.4 Field Involvement The writer visited the project area on a one day site visit during 30th June 2004, in company with geologist Mr J Haggman. Several old drill holes were sighted that targeted nickel – copper sulphide mineralisation, and is of direct relevance in the assessment of the Newport tenements. There were no suitable remnants for further sampling as the previous individual one-metre samples placed directly on the ground had all but been washed flat and merged. The writer is familiar with the general setting, geology and target models that apply to the project area.

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3 DISCLAIMER

Much of the information within this report is sourced from historical company exploration reports released by the West Australian Department of Industry and Resources (DOIR) as part of the WAMEX public domain database, together with geological mapping and geoscientific datasets released by a variety of government departments. These datasets are utilized with the assumption they are true and correct. In the writers opinion this is a reasonable assumption.

For description of land tenure the writer has relied on material provided by representatives of Newport Exploration who are commercial tenement managers and information provided directly from the Western Australian State Government’s Department of Industry and Resources (“DoIR”).

4 PROPERTY DESCRIPTION AND LOCATION

4.1 Property Area The property comprises one Exploration Licence (“EL”) E39/988 and one Exploration License application (“ELA”) ELA39/1072 covering an area of 403 km sq. The areas of individual properties are detailed within Table 1 (see section 4.3 below).

4.2 Property Location The project area comprises an exploration project within the Northeast Goldfields region of Western Australia. Geologically it is contained within the Northeast Goldfields greenstone belts of the Archaean Yilgarn Block. They are within the Shire of Menzies local government authority and are administered within the 39 District mining division.

The project can be spatially defined using the standard co-ordinate system within Australia. This is the Australian Map Grid (AMG) Zone 50 using the Australian Geodetic 1984 (AGD84) as a datum.

The project is centred around 520,000 mE, 6,694,000mN (AMG Zone 51 AGD84).

4.3 Claim Numbers Table 1 below details claim numbers and status

Table 1: Claim numbers, liabilities and status

Claim Number

Location Area Km sq/ Blocks

Holders Granted Expiry Minimum Annual Expenditure

Annual Rental Fee

E39/988 Mulga Tank 210km2/70 blocks

Newport Exploration 80% / King Eagle Resources 20%

06-10-2003

06-10-2008 $63,000 $6,729.80

E39/1072 Mulga Tank 153km2/51 blocks

Newport Exploration 75% / King Eagle Resources 25%

pending --- $ 0 $ 0

Tenement Totals $63,000 $6,730

Tenement Total Expenditure $69,730

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4.4 Property title

Newport Exploration Ltd has rights to earn an 80% interest in the Exploration License (E39/988) and a 75% interest in the Exploration Licence Application (E39/1072) as detailed in 4.3 above. Table 1 above displays the minimum annual exploration expenditure that must be met to keep the licence in good standing (i.e. with continuing grant), as well as the annual rental fee and expiry date of each tenement. Each of the tenements is located over crown land (i.e. not freehold or privately owned property) and as such the mineral rights that the tenements provides to the holders extends from land surface down.

4.5 Tenement Surveying The exploration tenements have not been surveyed in keeping with Western Australian standard practice. Tenement boundaries are spatially defined by longitude and latitude with each graticular block having corners one minute of latitude and longitude apart.

4.6 Outside Mineralised zones In a regional perspective major resources relative to the outside of the tenement boundary are shown as Figure 1.

4.7 Royalties, rights and encumbrances Newport may earn an 80% interest in the Mulga Tank Nickel Project under the terms of an Option Agreements with King Eagle Resources Pty Ltd (“King Eagle”).

The terms of the Option Agreement for the Company to acquire the interests in both licences from King Eagle are staged payments totaling Six Hundred Thousand Canadian Dollars (C$600,000), the issuance of Two Million Two Hundred and Fifty Thousand (2,250,000) common shares of Newport over a three year period and expenditures of Two Million Five Hundred Thousand (C$2,500,000) Canadian Dollars within 36 months of approval by the TSX Venture Exchange (the “closing”). Should Mulga Tank be placed in commercial production a further one million common shares of Newport will be issued to King Eagle. The schedule of the cash consideration of the Purchase Price payable by Newport is as follows:

- Thirty Thousand Canadian Dollars (C$30,000) within 10 days of signing the Option Agreement;

- Thirty Thousand Canadian Dollars (C$30,000) on closing;

- Sixty Thousand Canadian Dollars (C$60,000) within twelve (12) months of closing;

- Ninety Thousand Canadian Dollars (C$90,000) within twenty-four (24) months of closing;

- One Hundred and Fifty Thousand Canadian Dollars (C$150,000) within thirty-six (36) months of closing.

- Two Hundred and Forty Thousand Dollars (C$240,000) upon completion of a feasibility study.

• The share consideration of the Purchase Price payable by Newport is as follows;

o One Hundred and Fifty Thousand (150,000) common shares of Newport to be issued to King Eagle within ten (10) days of closing;

o A further Three Hundred Thousand (300,000) common shares of Newport to be issued to King Eagle within twelve (12) months of closing;

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o Four Hundred and Fifty Thousand (450,000) common shares of Newport to be issued to King Eagle within Twenty-Four (24) months of closing;

o Six Hundred Thousand (600,000) common shares of Newport to be issued to King Eagle within thirty-six (36) months of closing.

o Seven Hundred and Fifty Thousand (750,000) common shares of Newport to be issued to King Eagle on completion of a feasibility study.

o One million (1,000,000) common shares of Newport to be issued to King Eagle on commencement of commercial production.

• Expenditure commitments on Mulga Tank are Two Million Five Hundred Thousand

• (C$2,500,000) Canadian Dollars within 36 months of the date of closing, such expenditures to be at the following schedule;

o Two Hundred and Fifty Thousand Canadian Dollars (C$250,000) within 12 months of closing;

o A further Five Hundred Thousand Canadian Dollars (C$500,000) within twenty-four months of closing;

o A further Seven Hundred and Fifty Thousand Canadian Dollars (C$750,000) within 36 months of closing;

o A further One Million Canadian Dollars (C$1,000,000) within 48 months of closing.

o Amounts of less than 30% of the committed expenditures that are incurred annually as per the schedule as outlined can be accrued for expenditures the following year with no penalty or default on the part of Newport. The balance of other unspent amounts will be subject to a 50% penalty of such amount to be paid in cash to King Eagle.

Native title rights may apply within the project area.

4.8 Environmental Liabilities Past explorers have undertaken extensive rehabilitation and fencing of exposed shafts and workings. No significant environmental liabilities are known to exist associated with the tenements.

4.9 Permits Required for Exploration Work In keeping with standard conditions for all exploration licenses granted within Western Australia, imposed at the time of grant, some permits are required in order to conduct certain work. These include approval from the District Mining Engineer for ground disturbing activities such as track and drill pad construction. Several active exploration areas have been cleared to allow drilling to take place. In other areas exact extents of future drilling has not been determined and so permits have not yet been sought.

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1 Topography, elevation and vegetation The Northeast Goldfields presents a range of topography, generally reflecting the weathering effect of the varied underlying geology. Within the project areas it varies from poorly exposed flat expanses to low rocky hills and ridges, locally dissected by salt lake drainage systems.

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Elevation within the projects ranges from 238m to 429m, (Lipple et al, 1982).

The vegetation of the Northeast Goldfields region varies from open woodland and Mulga scrub in rangeland areas to salt tolerant halophyte species within salt lake drainage systems.

5.2 Access Access to the project areas is by 25km of sealed road then 135 km of graded shire road from Kalgoorlie to Pinjin Station and thence by way of 75 km of unsealed station tracks and old mining and exploration tracks.

5.3 Proximity to Population The city of Kalgoorlie is 235km to the southwest of the project area and provides all facilities to supply and maintain exploration activities.

5.4 Climate The climate is semi arid Mediterranean (Beard 1976). The annual rainfall averages 250mm with most rain occurring in winter months. Maximum daily temperatures between 20 to 40 degrees centigrade are common in summer but are typically between 15-25 degrees centigrade in winter. Exploration is rarely constrained by weather and is possible all year round.

5.5 Surface conditions for mining Local topography is generally subdued and the general environment is amenable for mining and associated infrastructure to be developed.

6 HISTORY

6.1 Prior Ownership The area has only been intermittently held under mineral title since the 1980s. The project area has been held by BHP Ltd., MPI Pty Ltd. and King Eagle Resources Pty Ltd. Current ownership is 80% King Eagle Resources Ltd., who have an option on the remaining 20%, from whom Newport is earning its interest under a joint venture.

Prior owners who carried out exploration work are detailed within section 6.2 below.

6.2 Past Exploration Work Publicly available exploration data, released as part of the Western Australian Mineral Exploration (WAMEX) Open File database has been researched to determine past work within the tenement area. Previous companies’ exploration is detailed in Table 2 below.

Table 2: Past exploration summary

Period Operator Work

1981 - 1983 BHP Pty Ltd

• Exploraton for Olympic Dam Style Mieralisation

Geological Mapping, Geophysics, Drilling (2 diamond holes, 29 RC holes, total 2,261m)

1994 - 1998 MPI Pty Ltd / North Ltd

• Gold Exploration of Minigwal, Mt. Margaret Mineral Field WA.

Geological Mapping, Geophysics, Remote Sensiing, Geochemistry.

Previous explorers include BHP (1981 to 1983) and MPI / North (1994 - 1998) where BHP’s primary targets were Olympic Dam and dunite hosted nickel deposits, however because of considerable drilling difficulties the target remains essentially untested.

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BHP focused on coincident magnetic and gravity anomalies and completed aeromagnetic surveys, ground magnetic surveys, radiometric surveys, bedrock drilling (hole depths 51 to 117m), diamond drilling (two vertical holes 215m and 63m deep), and geophysics.

MPI / North’s work specifically targeted structurally controlled gold deposits and the Minigwal dunite was not tested for nickel.

BHP carried out diamond coring using a Foxmobile top-drive rig and RC drilling using a truck mounted Schramm. Vertical RC drill holes totaling 2,261m were completed over 5 lines at the southern margin of the dunite body with assays in the range 0.2% to 0.5% Ni, including a highly anomalous value of 2.0% Ni over a 1600m strike length. The body remains open in all directions.

Diamond drillhole (DDH 1A) targeting the Minigwal dunite body intersected a magnetic dunite mainly comprising coarse grained olivine with varying degrees of serpentinisation, intestitial magnetite, chromite and sulphides. Assays returned values in the range 0.2% to 0.6% Ni and confirmed the presence of nickel sulphides.

The second diamond drillhole (DDH 1D) was targeted into the linear trending northwest-southeast magnetic structure and intersected amphibolites and banded iron formations, but did not exhibit any igneous textures in the samples.

6.3 Historical Mineral Resources Past work has not included any mineral resource estimates.

6.4 Production No historical nickel production has been undertaken within the Mulga Tank Nickel Project.

7 GEOLOGICAL SETTING

7.1 Regional Geology The Mulga Tank Nickel Project area is contained within the Northeast Goldfields, the eastern most of the three major granite greenstone terrains that comprise the Archaean aged Yilgarn Craton of Western Australia.

The Mulga Tank tenements overlay portions of an extensive greenstone belt which includes the Minigwal dunite, a large, intense, circular, magnetic anomaly with an area of approximately 4 km in diameter. This anomaly has the characteristics for a major dunite hosted nickel sulphide deposit such as Mt. Keith, which is also located in the Northeast Goldfields area of Western Australia.

The dunite forms part of a dominantly unexposed greenstone sequence, near the eastern exposed edge of the Yilgarn Block. The rocks are presumed to be Archaean on structural and lithological grounds. The belt is traceable on regional magnetic maps over an area of about 25 km by 15 km northwesterly from the dunite body. Small exposures of banded iron formation and amphibolite occur adjacent to foliated granite in the northern part of the belt.

The Mulga Tank tenements are close to the western limit of complete cover of Archaean rocks by Phanerozoic sediments of the Officer Basin.

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7.2 Local and Property Geology The dunite forms part of a dominantly unexposed greenstone sequence near the eastern edge of the Yilgarn Block. The area is mostly covered by a veneer of Cainozoic quartz rich surface aeolian sands or colluvial soils and transported material with less than 5% of the Archaean greenstone belt outcropping. Through aeromagnetics, regional synclines, mafic and ultramafic rocks, BIF’s, metabasalts, dolerite and granitoid intrusions have been interpreted. The greenstone belt is flanked to the east by felsic gneisses while the serpentinised dunite body at the south is flanked by sericite schists and metamorphosed mafic rocks.

The basement ultrabasics are medium to very coarse grained, adcumulate textured, serpentinised dunites with partially developed talc-carbonate alteration selvages. The mineralogy is dominantly serpentinite group minerals after olivine, with veins of quartz, secondary serpentinite, talc and carbonate. Euhedral grains of primary chromite/spinel are common and magnetite forms masses in cross-cutting veins of serpentinite. Secondary sulphide minerals include pyrrhotite and rare chalcopyrite and pentlandite.

8 DEPOSIT TYPES

Large dunite-hosted

The primary targets are large (>100Mt) low grade (<1% Ni) deposits of fine disseminated sulphides within olivine adcumulates, for example Mt. Keith and Six Mile / Yakabindie.

Stratiform dunite-hosted

Secondary targets are stratiform small to medium sized deposits of massive, matrix and disseminated sulphides at the base of thick komatiitic / dunite units composed mainly of olivine adcumulates, for example the Digger Rocks deposits in the Forrestania Greenstone Belt.

9 MINERALISATION

Results of past exploration are described within Section 6 above and this includes mineralisation that has been encountered by this work.

10 EXPLORATION

Newport Exploration has not commenced exploration within the project.

11 DRILLING

Drilling methods etc are detailed in Section 6 above; History within this report.

12 SAMPLING METHODS AND APPROACH

12.1 Sampling Methods Sampling methods etc are detailed in Section 6 above; History within this report.

12.2 Factors Impacting the Accuracy of Results No factors impacting a fair collection of samples are apparent from the data available within the project areas.

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12.3 Sample Quality In the writers opinion the quality of historical sampling provides a reasonable basis to plan further investigations.

12.4 Controls on Sample Intervals The majority of the historical drilling has been by reverse circulation techniques. In these instances Australian standard practice is to sample at one metre intervals.

12.5 Sample composites and true widths Typical drill intercepts and true widths are described in Section 6 above within this report and detailed in Table 3 below for nickel sampling.

Table 3: Assay intersections for Mulga Tank Nickel (source BHP Pty Ltd).

Hole No. Interval (m)

Sample No. Ni % Cu ppm Zn ppm Cr ppm Mn ppm Co ppm

MRC 8 75-77 M 008 0.455 55 35 650 610 145 MRC 9 68-70 M 009 1.60 320 310 2750 1750 335 MRC 9 68-70 M 009 1.89 355 335 2750 1700 355 MRC 9 67-69 M 009 2.00 445 460 2650 1750 250 MRC 9 66-68 M 009 0.84 320 260 2800 3000 430 MRC 9 68-70 M 009 1.10 200 210 1850 1500 290

DDH 1A 196-197 1A-14 0.58 100 60 -- -- 250 DDH 1A 207-208 1A-19 0.38 50 55 -- -- 160

13 SAMPLE PREPARATION, ANALYSES AND SECURITY

13.1 Related Party Sample Preparation The prospectivity of the project is largely defined by sample results from historical explorers. This work is unrelated to Newport.

13.2 Sample Analytical Methods Sample preparation carried out by past explorers has been conducted by commercial laboratories specializing in this work, including Analabs of Welshpool WA and Amdel of West Perth, WA.

The Analabs analyses were carried out using AAS (Atomic Absorption Spectroscopy) for Ni, Co, Cr, Cu, Mn and Zn.

Amdel carried out petrological reports on three samples from the BHP exploration program.

13.3 Sample Quality Control No details on any quality control procedures undertaken are available.

13.4 Sample Adequacy In the writers opinion the sampling methods, preparation, security and procedures have been adequate.

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14 DATA VERIFICATION

14.1 Quality Control No details on any quality control procedures undertaken are available.

14.2 Data verification Data used in this evaluation report is sourced from historical exploration reports and has been collected by a various exploration companies independent of the current tenement holders.

14.3 Limitations to Data Verification Sample data relates to historical work in which quality control issues are not discussed.

14.4 Reason to Verify Data Sample data relates to historical work in which quality control issues are not discussed and the data is not obtainable from different sources.

15 ADJACENT PROPERTIES

No information on adjacent properties is included here.

16 MINERAL PROCESSING AND METALLURGICAL TESTING

No mineral processing or metallurgical testing has been carried out.

17 MINERAL RESOURCE AND RESERVE ESTIMATES

No mineral resource or reserve estimate has been carried out by Newport Exploration or its Joint Venture partner. No historical resource estimates have been carried out.

18 OTHER RELEVANT DATA AND INFORMATION

NOTES ON MT KEITH - A MULGA TANK ANALOGUE

The Mount Keith orebody is one of the world’s largest low-grade, economically mined, disseminated nickel sulphide deposits. It is some 425 km north of Kalgoorlie and lies within the Agnew-Wiluna segment of the regional Achaean Norseman-Wiluna greenstone belt. Mt Keith occurs near the centre of the narrowest part of the belt, which ranges from 5 to 25 km in width.

Nickel mineralisation is hosted by a serpentinised dunite within a large lenticular peridotite-dunite komatiite body. The mineralization extends for over 2 km along strike and continues steeply down dip to a depth of at least 500 metres. Ore grade mineralisation is developed over 250 to 300 metres of the 650m thickness of the dunite. Total reserves and resources are 517Mt @ 0.56% Ni, at a 0.2% recovered Ni lower cut-off grade.

The predominant nickel sulphide is pentlandite accompanied by pyrrhotite±magnetite.

19 INTERPRETATION AND CONCLUSIONS

No exploration work has been carried out by Newport Exploration. Historical interpretations and conclusions are included in Section 6 above. Recommendations are described below.

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20 RECOMMENDATIONS

It is recommended further exploration be conducted to define if economic mineralisation is present within the project areas. Work should continue on drilling the southern rim and peripheral zones of the dunite body while delineating targets throughout the greenstone belt. Given the size of the body it is envisaged a large drilling program will be required to test the targets.

Proposed Exploration Program and Budget

Rationale

The Mulga Tank exploration program will consist of 2 phases and take 12 months to complete. The goal of Phase 1 is to define anomalous zones within the dunite body and elevate these to drill target status. Phase 2 will involve drilling these targets.

Phase 1 consists of the acquisition and re-interpretation of the BHP airborne magnetic data, a surface EM survey, soil geochemistry and mapping of the dunite body-magnetic anomaly. The soil techniques to be used are mag lag and enzyme leach which have been proven to be successful methods in exploring for deep nickel sulphide and laterite deposits. Given the nature of the terrain and dense vegetation line-clearing will be required for the ground EM survey. Approval for major earth works will need to be obtained from the Department of Industry & Resources. Phase 1 is estimated to take 6 months to complete.

Phase 2 will involve drill testing of anomalous zones and will consist of a 2000m program of RC drilling and downhole-EM subject to satisfactory results being gained from Phase 1.

Phase 1 Budget

Item A$

EM survey / 10 days at $2500 day 25 000

Line-clearing 10 000

Soil sampling / 3 lines at 15 km x 100m / 450 samples

20 000

Data acquisition / BHP airborne mag 5 000

Airborne magnetics re-interpretation 5 000

Contract field work / 6 months x $4000 month

24 000

Exploration management services / $4000 month

24 000

Consultants 10 000

Drafting / presentation material 2 000

Travel – air 3 000

Vehicle hire 4x4 3 500

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Newport Exploration Ltd – Northeast Goldfields Project Review

Newport Exploration Technical Report 2 July 2004 Page 14 of 23

Accommodation 4 000

Camp logistics 2 000

Communication 1 000

Total Phase 1 A$126 500

Phase 2 Budget

Item A$

RC drilling – 2000m 100 000

Drill mobilisation 10 000

Access / line-clearing 10 000

Assays 10 000

Field Assistants 15 000

Exploration management services 24 000

Travel – air 3 000

Travel - land 2 500

Accommodation 4 000

Communication 1 000

Camp logistics 5 000

Drafting / Reporting 2 000

Consultants 5 000

Total Phase 2 A$191 500

Total Phases 1 and 2 A$ 318 000

Contingency 10% 31 800

TOTAL A$ 349 800

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Newport Exploration Ltd – Northeast Goldfields Project Review

Newport Exploration Technical Report 2 July 2004 Page 15 of 23

21 REFERENCES

Aldous. R., (1983), Annual Report for the Mines Department on TR8741H, Minigwal, Mount Margaret Mineral Field, April 1983, Item 2940, A12443

Beard J.S. & Webb M.J. 1974, The vegetation survey of Western Australia : its aims, objects and methods. Great Sandy Desert. Part 1 of explanatory notes to sheet 2. Vegetation survey of Western Australia, 1:1 000 000 Vegetation Series, University of Western Australia, Nedlands, Perth.

King Eagle Resources Pty Ltd (2004). The Mulga Tank Nickel Project.

Stephens C., (1983), Report on Bedrock Drilling of an Obscured Dunite Body, TR 8741H, Minigwal, WA, June 1983, Item 2940/1, A13701.

22 DATE & SIGNING

The effective date of this report is 4th July 2004

Allen J Maynard BAppSc(Geol), MAIG, MAusIMM

23 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES

Not applicable.

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Newport Exploration Ltd – Northeast Goldfields Project Review

Newport Exploration Technical Report 2 July 2004 Page 16 of 23

24 ILLUSTRATIONS

Figure 1: Northeast Goldfields – Location Plan

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Newport Exploration Ltd – Northeast Goldfields Project Review

Newport Exploration Technical Report 2 July 2004 Page 17 of 23

Figure 2: Northeast Goldfields Nickel Deposits

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Newport Exploration Ltd – Northeast Goldfields Project Review

Newport Exploration Technical Report 2 July 2004 Page 18 of 23

Figure 3: Mulga Tank Aeromagnetics

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Newport Exploration Ltd – Northeast Goldfields Project Review

Newport Exploration Technical Report 2 July 2004 Page 19 of 23

Figure 4: Minigwal dunite aeromagnetic anomaly showing drill hole locations

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Newport Exploration Ltd – Northeast Goldfields Project Review

Newport Exploration Technical Report 2 July 2004 Page 20 of 23

Figure 5: Line 18300E - Bedrock drilling

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Newport Exploration Ltd – Northeast Goldfields Project Review

Newport Exploration Technical Report 2 July 2004 Page 21 of 23

Figure 6: Line 18300E – Nickel sulfides were identified in the bedrock drill samples

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Newport Exploration Ltd – Northeast Goldfields Project Review

Newport Exploration Technical Report 2 July 2004 Page 22 of 23

Figure 7: Longitudinal drill section – showing diamond drill hole DD1A and bedrock drilling

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MULGA TANK DRILL ASSAYS

ANALABSREP NO. HOLE NO. INTERVAL SAMPLE NO. Ni Cu Zn Cr Mn Co

ppm ppm ppm ppm ppm ppm14.010.12573 MRC 1 57-59 M 001 4000 45 50 995 1550 18014.010.12573 MRC 2 53-54 M 002 4500 85 105 2800 750 19014.010.12573 MRC 3 40-51 M 003 5000 25 50 1150 800 10514.010.12573 MRC 4 47-49 M 004 3300 75 90 490 900 18514.010.12573 MRC 5 55-56 M 005 2800 50 70 1150 1000 10014.010.12573 MRC 6 60-71 M 006 1900 80 100 420 2100 10014.010.12573 MRC 7 75-77 M 007 2800 15 40 620 500 11514.010.12573 MRC 8 75-77 M 008 4550 55 35 650 610 14514.010.12675 MRC 9 68-70 M 009 1.60% 320 310 2750 1750 33514.010.12675 MRC 9 68-70 M 009 1.89% 355 335 2750 1700 35514.010.12675 MRC 9 67-69 M 009 2.00% 445 460 2650 1750 25014.010.12929 MRC 9 64-66 M 009 1750 235 225 595 230 10514.010.12929 MRC 9 66-68 M 009 8400 320 260 2800 3000 43014.010.12929 MRC 9 68-70 M 009 1.10% 200 210 1850 1500 29014.010.12675 MRC 10 75-77 M 010 385 875 475 40 5400 17514.010.12675 MRC 11 67-69 M 011 2950 120 65 940 730 11014.010.12675 MRC 12 73-75 M 012 3800 30 30 375 1100 11014.010.12675 MRC 13 79-81 M 013 3150 30 35 400 555 9514.010.12675 MRC 14 87-89 M 014 2000 65 100 485 1150 9514.010.12675 MRC 15 69-71 M 015 4150 55 105 1500 1600 18014.010.12675 MRC 16 77-79 M 016 2500 15 25 320 680 8014.010.12724 MRC 17 88-89 MO 17A 2250 X 30 450 800 13514.010.12675 MRC 17 86-88 MO 17 760 35 50 195 1750 6514.010.12724 MRC18 115-117 MO 18 2800 X 40 765 670 12014.010.12675 MRC 19 87-88 M 019 2450 10 40 525 1850 9514.010.12675 MRC 19 77-79 M 019A 115 30 90 15 900 3014.010.12675 MRC 20 90-91 M 020 4200 125 140 1350 1900 12014.010.12675 MRC 21 95-97 M 021 2700 10 45 1100 650 9514.010.12675 MRC 23 105-107 M 022 780 60 40 600 1500 6514.010.12724 MRC 25 87-89 MO 25 90 60 75 15 1100 5014.010.12724 MRC 26 81-83 MO 26 265 100 75 15 1950 10014.010.12724 MRC 27 51-53 MO 27 985 15 75 100 240 5514.010.12724 MRC 28 65-67 MO 28 175 410 1700 35 280 7014.010.12724 MRC 29 89-91 MO 29 2800 15 55 450 645 130

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Certificate of Qualifications and Consent of Author – Newport Exploration Ltd Page 1

AL MAYNARD & ASSOCIATES Consulting Geologists

www.geological.com.au (ABN 95 336 331 535)

9/280 Hay Street, Tel: (+618) 9388 1000 Mob: 04 0304 9449 SUBIACO, WA, 6008 Fax: (+618) 9388 1768 A/h: (618) 9443 3333 Australia [email protected]

Australian & International Exploration & Evaluation of Mineral Properties

CERTIFICATE and CONSENT of AUTHOR

I, Allen John Maynard, B.App.Sc.(Geol) do hereby certify that: 1. I am currently self-employed as a Principal Geologist of geological consulting firm Al

Maynard & Associates, Suite 9, 280 Hay Street, Subiaco, WA, 6008, Australia.

2. I graduated with a degree in Bachelor of Applied Science in Geology from the Western Australian Institute of University (now Curtin University) in 1978. (Cert. No. 10534)

3. I am a Member of the Australian Institute of Geoscientists (Cert. No. 0883) and a

Corporate Member of the Australasian Institute of Mining and Metallurgy (No. 104986). 4. I have worked as a geologist for a total of 26 years in all Australian States (including

Christmas Island – Indian Ocean), Cambodia, Chile, China (Sechuan Province), Ecuador, Egypt, Greenland (Southwest), Indonesia (Java & Sumatra), Mauritania, Mozambique, Peninsular Malaysia, Peru, Philippines (Cebu, Luzon & Mindanao), Portugal, Republic of South Africa, Zimbabwe and mid-west USA (Wyoming, Colorado).

5. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

6. I am responsible overall for the preparation of the technical report titled “Geological

Evaluation, Mulga Tank Nickel Project, Northeast Goldfields, Western Australia ” dated 4th July, 2004 (the “Technical Report”) prepared for Newport Exploration Ltd of 408- 837 West Hastings Street, Vancouver, BC V6C 3N6. I have visited the property during on the 30th June, 2004 and have had recent discussions during June and July, 2004 regarding the property with senior geotechnical personnel regarding all available exploration data.

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Certificate of Qualifications and Consent of Author – Newport Exploration Ltd Page 2

7. I have had no prior involvement with the properties that are the subject of the Technical Report.

8. I am not aware of any material fact or material change with respect to the subject matter

of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading.

9. I am independent of the issuer applying all of the tests in section 1.5 of National

Instrument 43-101. 10. I have read National Instrument 43-101 and Form 43-101F1, and the Technical Reports

have been prepared in compliance with that instrument and form. 11. I consent to the filing of the Technical Reports with any stock exchange and other

regulatory authority and any publication by them, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report in the form and context within which they are written.

Dated this 4th Day of July, 2004.

Signature of Qualified Person Allen J Maynard

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Steve Le Brun Consulting Geologist

www.lb-consulting.co.uk (ABN 54 754 658 891)

GPO 1667, Tel: (+618) 9307 3232 Mob: +61 04 0399 1533 West Perth, WA, 6872 Fax: (+618) 9307 3232 Australia [email protected]

Australian & International Resource Estimation, Exploration & Evaluation of Mineral Properties

CERTIFICATE and CONSENT of AUTHOR I, Steven Le Brun, BSc(hons), MSc, do hereby certify that: 1. I am currently self-employed as an independent consulting geologist of 3 Carterton

Place, Padbury, Perth, WA 6025, Australia.

2. I graduated with a honours degree in Bachelor of Science in Earth Sciences from the University of Leeds, England in 1984.

3. I graduated with a degree in Master of Science in Mineral Exploration and Mining

Geology from the University of Leicester, England in 1987. 4. I am a Member of the Mineral Industry Consultants Association and a Corporate

Member of the Australasian Institute of Mining and Metallurgy. 5. I have worked as a geologist for a total of 20 years in Australia, France, England,

Uganda, Zimbabwe, Ghana, Tadjikistan, Armenia, Libya and Saudi Arabia.

6. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

7. I am responsible for the preparation of the technical report titled “Geological

Evaluation, Mulga Tank Nickel Project, Northeast Goldfields, Western Australia” and dated 4th July, 2004 (the “Technical Report”) relating to the properties prepared for Newport Exploration Ltd. Of 408-837 West Hastings Street, Vancouver, BC Y6C 3N6..

8. I am not aware of any material fact or material change with respect to the subject

matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading.

9. I am independent of the issuer applying all of the tests in section 1.5 of National

Instrument 43-101.

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10. I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form.

11. I consent to the filing of the Technical Report with any stock exchange and other

regulatory authority and any publication by them, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report.

Dated this 4th Day of June, 2004.

Signature of Qualified Person Steve Le Brun

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Mineral Titles Online System

A13 Type Tenement ReportDISCLAIMER: This is not a copy of the official Register s referred to in Reg. 106 of the Mining Regulations 1981.

E 3900988 (EXPLORATION LICENCE) Status: LIVE

Tenement SummaryFile ID: 11425/2 Death reason:

Mark Off: Death Date:

Lodged: 13/08/2002 10:56:00 Granted From: 06/10/2003 To: 05/10/2008

Purpose: Wardens action: Recommended for Approval

DESCRIPTION DETAILS

Remaining Blocks

Date Description No. ofBlocks

Million Plan Primary Graticules

13/08/2002 APPLIED FOR 70 KALGOORLIE 1478 wxyz

1550 abcdefghjlopqvwx

1551 ab

1622 bchjknoptuz

1623 lqrstuvwxyz

1624 qrvw

1695 abcdefghjkmnop

1696 abfghlmn

06/10/2003 GRANTED 70 1478 wxyz

1550 abcdefghjlopqvwx

1551 ab

1622 bchjknoptuz

1623 lqrstuvwxyz

1624 qrvw

1695 abcdefghjkmnop

1696 abfghlmn

SHIRE DETAILS

Shire Shire No Area

MENZIES SHIRE 5390 70.00000 BL.

RESERVE AND SPECIAL AREA DETAILS

PUBLIC PLAN DETAILS

Created 15/07/2004 11:39:56 Requested By: Allen J Maynard/Page 1 of 2

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Plan code Plan Name Scale Million Reference Plan Status Action Charted details

00000S NO PLAN NAME GIVEN 0 SC52 ACTIVE PP 01 13/08/2002

HOLDER DETAILS

Name and Address Tenement Interest Holder Code

KING EAGLE RESOURCES PTY LTD ACTIVE 017564 03SUITE 701: LEVEL 7 121 WALKER STREET NORTH SYDNEY NSW 2060

RELATED TENEMENT DETAILS

Relationship Relationship Tenement ID Tenement Status

SURVEY DETAILS

UNCONDITIONAL PERFORMANCE BOND DETAILS

COMBINED REPORTING DETAILS

RENT DETAILS

Year Payment date Payment Centre Receipt No Amount

2004 03/10/2003 PERTH 64902 $592.20

2004 13/08/2002 LEONORA 4407 $5,922.00

EXPENDITURE DETAILS

A13 Report E 3900988

Created 15/07/2004 11:39:56 Requested By: Allen J Maynard/Page 2 of 2

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Mineral Titles Online System

A13 Type Tenement ReportDISCLAIMER: This is not a copy of the official Register s referred to in Reg. 106 of the Mining Regulations 1981.

E 3901072 (EXPLORATION LICENCE) Status: PEND

Tenement SummaryFile ID: 0/0 Death reason:

Mark Off: Death Date:

Lodged: 09/01/2004 11:49:00 Granted From: To:

Purpose: Wardens action: Recommended for Approval

DESCRIPTION DETAILS

Remaining Blocks

Date Description No. ofBlocks

Million Plan Primary Graticules

09/01/2004 APPLIED FOR 51 KALGOORLIE 1550 uz

1551 qvwx

1623 abcdfghjkmnop

1624 flmnstxy

1696 cdjopstuxyz

1768 cdeghjmnrsx

1840 ch

SHIRE DETAILS

Shire Shire No Area

MENZIES SHIRE 5390 51.00000 BL.

RESERVE AND SPECIAL AREA DETAILS

PUBLIC PLAN DETAILS

Plan code Plan Name Scale Million Reference Plan Status Action Charted details

00000S NO PLAN NAME GIVEN 0 SC52 ACTIVE PP 01 09/01/2004

HOLDER DETAILS

Name and Address Tenement Interest Holder Code

KING EAGLE RESOURCES PTY LTD ACTIVE 017564 03

Created 15/07/2004 11:42:35 Requested By: Allen J Maynard/Page 1 of 2

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SUITE 701: LEVEL 7 121 WALKER STREET NORTH SYDNEY NSW 2060

RELATED TENEMENT DETAILS

Relationship Relationship Tenement ID Tenement Status

SURVEY DETAILS

UNCONDITIONAL PERFORMANCE BOND DETAILS

COMBINED REPORTING DETAILS

RENT DETAILS

Year Payment date Payment Centre Receipt No Amount

09/01/2004 LEONORA 6442 $4,457.40

EXPENDITURE DETAILS

A13 Report E 3901072

Created 15/07/2004 11:42:35 Requested By: Allen J Maynard/Page 2 of 2

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