Company Background

The Company was incorporated on June 10, 2004 for the purposes of participating in an international tender for the sale of the Gold Ridge Project.

ASG participated in the international tender and was successful, culminating in the signing of a share purchase agreement ("SPA") with American Home Assurance Company (AHAC) on December 20, 2004 for the purchase of all the shares in JV Mine (Australia) Pty Ltd. ("JV Mine") the parent entity of the group owning the Gold Ridge Project. An agreement varying the SPA (the "Varying Agreement") was signed and the purchase was completed on May 30, 2005, resulting in ASG obtaining sole beneficial ownership of JV Mine and therefore of the Gold Ridge Project.

The Company has been reviewing its development programme and timing which involves the coordination of various related activities. The most important activity is the arrangement of adequate financing and recently, the Company has mandated jointed Sociètè Gènèrale Australia Branch and the ANZ Banking Group to arrange project financing facilities, including the project debt and cost over-run facilities and an equipment leasing facility for the proposed new fleet of mining equipment. According to the mandate, the programme of due diligence and credit approval processes has been agreed, with the objective of banks receiving credit approval of facilities by January 2008.

During the period required to obtain project debt and equipment leasing facilities, and Political Risk Insurance cover, the Company plans to continue to undertake further preliminary works. The main activities to be undertaken include:-

• Establishment of equipment facilities required for the de-watering of the Tailings Storage Facility ("TSF"), followed by actual dewatering of the TSF which is not expected to be completed before June 2008.
• Continuation of the work required to relocate landowners from the Gold Ridge Mining Lease to the two new village locations already agreed (in May 2006) with the Gold Ridge Community Landowner Association. Subject to receiving Solomon Island Government Gazettal of the applicable land areas, the Company will undertake land clearing and civil works, construct demonstration houses, and thereafter construct the two villages required. Construction of the relocation villages is expected to be completed by November 2008; and
• Continuation of exploration activities including follow up drilling in Charivunga Gorge to delineate the extent of the mineralised zone, drilling on untested gold in soil anomalies, pit extension drilling, and an induced polarization and resistivity survey over the most prospective portion of the mining lease area.

Other activities will include improvement of access roads and preparations for the construction of haul roads, further refurbishment of buildings and selected equipment (including the plant), using the existing workforce and facilities developed to date.

Assuming the project debt facilities are in place by early 2008, the Company will seek the remaining finance required to develop the Gold Ridge Project. The current estimate of the development period, including the major refurbishment of processing equipment and facilities, is approximately 15 months, including limited engineering and design work. Depending on availability and timing of all pre-requisite finance, the Company expects commissioning to commence at the Gold Ridge Project by June 2009.