TROUSER LEGS JV

(HAWTHORN RESOURCES 70%, GEL RESOURCES 30%)

The Trouser Legs Project area is located 140 kilometres north-east of Kalgoorlie and is centred on the historic Anglo Saxon Mine. The Trouser Legs - Anglo Saxon project area is also situated 35 kilometres to the east of the Carosue Dam Mill of Saracen Mineral Holdings.

A series of resource estimations carried out between 1994 and 2001 and more recently in late 2011, determined that a near surface, mainly oxide deposit of 23,000 ounces of gold could be defined within a much larger global gold resource.

Recent drilling has been designed to test and extend mineralised zones within the Indicated Mineral Resource model, that remain open along strike and at depth, and progress the resource towards mining.

Further drilling has commenced to fully capture the near surface gold resource at Anglo Saxon and nearby high grade satellite deposits within the project area, while pre-mining studies on the feasibility of the project are underway.

This drilling was successful with 27 of 31 holes drilled returning significant gold assays.