EMED Mining's exploration areas in Cyprus are centred on the Troodos ophiolite complex. The targeted mineralisation style is volcanic-hosted massive sulphide ("VHMS") copper deposits under shallow cover rocks, similar to the larger past Cyprus copper mines - three of which exceeded 10 million tonnes of ore running at grades between 1% and 4.5% copper.

Rising metal prices have materially improved the economics of several known base-metal deposit on EMED Mining's tenements in Cyprus. This prompted an evaluation of the Company's prospects in Cyprus in the context of exploration insights developed by the EMED Mining team. This review identified the Klirou Copper-Zinc Project as a high priority.

Whilst EMED Mining's highest copper-related priority is in Spain, low-cost exploration and evaluation work will continue in Cyprus on various targets and opportunities.

Klirou Copper-Zinc Project

The Klirou Copper-Zinc Project is located approximately 20km southwest of Nicosia, Cyprus.

In late 2007, AMC completed an independent review of the Klirou Copper-Zinc Project.  Financial modelling based on the available information and work completed to date continues to indicate that the project is worthy of further work. An integral part of the envisaged project would be to utilise the nearby Mitsero processing plant, owned by EMED Mining's 5% partner Hellenic Mining Company, to treat ore and produce saleable concentrates.

This review highlighted the following key areas for further work before justifying the commencement of a full feasibility study for the Klirou Copper-Zinc Project:

• Expansion of resources through successful exploration.
• Diamond core drilling to verify and upgrade categorisation of known resources, as well as collecting samples for further metallurgical testwork.
• Further assessment of the refurbishment of the nearby Mitsero processing plant, as well as preparation of a metallurgical plan for the resources and a processing strategy.
• Collection and collation of firm cost estimates.

Potential remains to increase known mineralisation by infill drilling and step-out drilling. Some of the deposits are likely to have faulted extensions and may have repeats along strike within areas containing geophysical anomalies.

Exploration Strategy in Cyprus

The areas covered by the Group's prospecting permits and applications in Cyprus are considered prospective for the following reasons:

• it is recognised that, although mineralisation occurs throughout both the Upper Pillow Lavas and the Lower Pillow Lavas (being the upper and lower units of what is known as the extrusive sequence of basalt pillow lavas), more than 90 per cent of the copper mined in the Troodos Complex has come from deposits within the Upper Pillow Lavas;
• by focusing on areas of shallowly dipping Upper Pillow Lavas, especially where it dips under the sedimentary cover, the Group intends to access opportunities which have been under-explored by past explorers; and
• the ability to use new techniques in reprocessing and modelling of the extensive historic geological and geophysical data in order to identify priority targets.

Simplified geological map of Cyprus showing the Troodos Complex in the southwest, the location of EMED Mining Permits and major historical copper districts.