The Projects consist of seven granted tenements, totaling approximately 1060 square kilometres of contiguous land holding, (Pardoo E45/2557, E45/2558, E45/2965 and E45/2967; and Telyagel E45/2576, E45/2577 and E45/2966), which are located between 110 and 160 kilometres east of Port Hedland. Refer to Figure 1. A DMP 50% compulsory surrender was completed on tenements E45/2557, E45/2558, E45/2576 and E45/2577 at the end of 2008.

During November 2007 Brumby announced that it had defined two large iron ore exploration targets at its 100 per cent-owned Pardoo East Project from an interpretation of geophysical surveys. Refer to Figure 2. The Pardoo East Project is located within Brumby’s Exploration Licences EL 45/2557 and EL 45/2558, some 110 kilometres east of Port Hedland.

The two priority targets were selected from a total of 10 exploration targets with the potential to host hematite mineralisation from an interpretation of ground gravity and aeromagnetic surveys.  Refer to Figure 2.

Target 1

In-fill gravity and aeromagnetic data has delineated a high density unit approximately 5 kilometres in length and 400 metres wide overlying a moderately to weakly magnetic unit. This high density unit has been interpreted as potential hematite iron ore overlying a primary magnetite source.

Target 2

Target 2 encompasses four closely related targets over an area measuring approximately 2 kilometres by 2 kilometres. This moderate to high density unit has also been interpreted as potential hematite iron ore overlying a primary magnetite source. This target also occurs within an area of interpreted structural complexity.

Regional geological and geophysical interpretation of the data indicates that Brumby’s Pardoo East Project is likely to be hosted within the regionally important Nimingarra Iron Formation. This Formation hosts BHPB’s operating Yarri Iron Ore mine and the advanced Pardoo Iron Ore Project, currently being developed by Atlas Iron Limited as well as the mined out Goldsworthy, Shay Gap and Nimingarra deposits

Prior to any drilling activity on the two targets at the Pardoo East Project, Brumby was required to complete a Heritage Survey over the target area and this was completed during April 2008 with formal approval granted during June 2008, thus allowing drilling of the targets to proceed.

During December 2008, Brumby was granted the Programme of Work Approvals for the drilling programme on the Pardoo East targets. The commencement of drilling will not be possible until after the current cyclone season after March/April 2009. Brumby has currently budgeted the drilling to commence during the second half of 2009.

An aero-magnetic survey was completed in late November, 2008 over a 128.8 square kilometre block on tenement E45/2965 to assess the potential presence of magnetic conductors along the line between the Pardoo East and the Telyagel magnetic anomalies. Interpretation by the Company's geophysical consultant will commence in the coming months once the final data is received.

The Company’s Telyagel Project area has also been assessed as having the potential to host iron ore mineralization and Brumby undertook a ground gravity survey over the north western section of the Telyagel tenement, E45/2576, during June 2008. The data is currently being interpreted by the Company’s geophysical consultant. Results of this interpretation are expected during 2009. Refer to Figure 3, which is an aero-magnetic scene showing the extent of the survey area and potential iron ore targets.