Background

We have acquired a portfolio of highly prospective exploration projects around Leonora-Laverton in the North-Eastern Goldfields of Western Australia, long regarded as an area capable of producing commercial metals discoveries.

Selection of the projects was based on criteria which included: close proximity to and with the same structural trend as known commercial mineral deposits; appropriate rock types and metallogenic "signatures"; and our belief in a strong future for the demand and prices of the primary metals sought, nickel and gold, as well as other metals that we may discover. The projects show a number of prospective characteristics, including:

• Prospective Archaean greenstone stratigraphy and favourable structural architecture;
• Adjacent to, or inclusive of, historical mine workings;
• Comprehensive historical exploration database sourced from the WA DoIR's WAMEX reporting system; and
• Granted or secured tenure.

It is significant that these highly prospective project areas have been packaged together into one company for a concerted exploration programme. Until 2006 they were tightly held by individual Prospectors, some 15 in total, who acquired them over the past 12+ years and who have concentrated on and successfully operated alluvial operations thereon, with little or no major exploration for substantial resources. Acquisition of these projects in the one region and with similar geology will enable Eagle Eye to explore and develop them with a concentrated and cost effective programme from a Leonora base, assisted by the Vendor Prospectors, with whom we have forged a solid alliance that will provide extremely valuable local knowledge and maintain a constant ongoing presence in the region.

The Company has assembled a Board of Directors, senior management and consulting team possessing extensive exploration, development, mining and corporate experience within the mining industry in general, and this region in particular.

As a result of successful Seed Capital fund raising, Eagle Eye was able to spend a considerable amount of time and funds in the acquisition of high quality datasets to aid its exploration and development programme, and to ensure that exploration is cost effective and well targeted. This data, combined with field work and our existing knowledge of the areas has enabled the Company to ascertain that the project areas are well worthy of an intensive exploration programme.

Having raised funding for its exploration programme through a Share and Option Issue in November 2006, Listing on the Australian Stock Exchange on 20th November 2006, Eagle Eye believes that our portfolio of highly prospective areas, and an excellent knowledge of the specific geology within them translates into strong potential for the Company to find and develop significant ore bodies capable of generating long term cash flow.