Welcome to Eagle Eye Metals Limited

Eagle Eye was listed on ASX in December 2006 as a gold, nickel and other base metals explorer operating in the Leonora-Laverton region of Western Australia.

Waite Kauri nickel/cobalt project

Initial search focus at the Company's Waite Kauri nickel/cobalt project, including drilling of 237 holes, proved successful. We established an inferred ore resource of 2.53Mt grading 0.7% nickel and 0.05% cobalt, equating to 17,000 tonnes of contained nickel plus 1,520 tonnes of cobalt.

These significant findings resulted in Poseidon Nickel Limited entering into a Joint Venture with Eagle Eye to further develop the project, with the eventual aim of processing the ore at Poseidon's nickel production facility being planned for construction at nearby Windarra. Eagle Eye is free carried for the next $500,000 of exploration expenditure in respect of our retained 20% interest, and we will receive a 2% net smelter royalty from Poseidon from its 80% share of nickel and cobalt produced.

With the price of nickel having declined significantly over recent months, Poseidon and Eagle Eye are awaiting a price improvement before deciding whether or not to proceed with development and mining.

Other exploration projects

The world's financial crisis has not prompted any major shift in Eagle Eye's exploration and development policy. We will continue to carefully research and assess our projects before implementing expensive exploration work, so as to get the best results for the minimum possible expenditure.

The Company was originally intended as a primarily gold search Float. This well fits the founders and Directors considerable knowledge in this metal and the acquisition of a portfolio of excellent mostly gold prospects in the Leonora/Laverton region of the North Eastern Goldfields of Western Australia, a world renowned gold producing area. However, initial search focus in early 2007 was shifted to the Waite Kauri nickel/cobalt project due to a massive increase in world demand and price for these metals. Now that this project has been Joint Ventured out, we are focusing strongly on gold opportunities, certainly a preferred metal in these troubled economic times.

In consultation with our consulting geologists we are working up exploration and drilling programs for implementation over the next several months on our highly prospective Western Australian gold exploration projects at Apollo Hill, Erlistoun, Little Doris, Wandry Well and Randwick.

New mining projects

With a sound financial position and a relatively small share capital structure, Eagle Eye is continuing to receive approaches from other explorers and their broker/financial adviser representatives seeking to vend in their mining projects. These opportunities are being carefully assessed by our well experienced mining industry Directors in consultation with our consulting geologists. They are well experienced Rocworth Consulting in Australia and recently appointed world recognised consultants Coffey Mining in South Africa, who we have retained to review and advise on coal and gold projects in that region on offer to Eagle Eye.

Financial position and share structure

At 31 December 2008 Eagle Eye was in a sound financial position, with net cash and cashable investments on hand of approx $2.7million, representing 6.2cents per issued share The Company has negligible debt and owns all its exploration projects outright. Issued share capital is 44,010,000 fully paid shares (ASX code "EYE") and 41,565,000 options (ASX code "EYEO") exercisable at 20cents each by 30 June 2010.