Moto Goldmines Limited
TSX : MGL
AIM : MOE

Moto Goldmines Limited

December 14, 2007 08:15 ET

Moto Gold Project-Feasibility Study Completed

PERTH, WESTERN AUSTRALIA--(Marketwire - Dec. 14, 2007) - Moto Goldmines Limited ("Moto") (TSX:MGL)(AIM:MOE) is pleased to report that the completion of the Feasibility Study ("FS") by Moto and its subsidiaries ("Moto Group") for the Moto Gold Project (the "Project") in the Democratic Republic of Congo ("DRC") clearly demonstrates the Project's fundamentals and long life.

The FS was completed by Lycopodium Engineering Pty Ltd. ("Lycopodium") and Cube Consulting Pty Ltd ("Cube") based on 3.5 and 4.5 million tonnes per annum plant throughput scenarios supported by open pit mining activities.

In addition to previous Pre-Feasibility Study "PFS" work, the Moto Group has spent in excess of US$5M in the 15 months to November 2007 on technical design and evaluation work associated with the FS. Expenditure on resource definition and technical drilling for FS purposes totals over US$13M.

Probable Mineral Reserves of 37.8 Mt at 3.2 g/t Au for 3.9 Moz are planned to be mined and processed over an 81/2 year mine life on the basis of a 4.5 Mtpa throughput.

Key Findings of the Feasibility Study

In order to maximize the Project's return on capital, improve pay-back period, minimize cash operating cost and maximize asset utilization/exploitation, Moto has decided that the 4.5 Mtpa scenario as detailed in the FS currently represents the preferred option. Key points of the study include:

- extensive re-scoping of the PFS project dimensions;

- confirmation and further clarification of technical findings from the PFS;

- Probable Mineral Reserves of 37.8 Mt at 3.2 g/t Au for 3.9 Moz;

- total gold production of 3.3 Moz over 81/2 years;

- a nominal output of 400,000 ounces of gold per annum;

- project financials evaluated using gold revenue of US$600 /oz and 100% equity basis;

- generation of annual pre-tax operating cash flows averaging US$120M;

- average cash operating costs of US$294 /oz produced;

- payback period of approximately 41/2 years for initial capital and infrastructure cost expenditures, excluding expenditures to date;

- sensitivity analysis indicating reduction in payback period to 3 years for a gold revenue price of US$750 /oz; and

- capital and infrastructure cost estimates total US$483M including US$80M hydroelectric power station, US$78M initial mining fleet & US$47M construction contingency.

The table below provides a summary of the Mineral Reserves and Resources for the Moto Gold Project, and the net attributable interest for the Moto Group (being 60%):



-------------------------------------------------------
Category Gross
-------------------------------------------------------
Tonnes Grade Contained
(millions) (Au g/t) Metal (koz)
-------------------------------------------------------

Mineral Reserves
Proved - - -
Probable 37.8 3.2 3,940
-------------------------------------------------------
Sub-total 37.8 3.2 3,940
-------------------------------------------------------

Mineral Resources
Measured - - -
Indicated 77.8 2.8 7,030
Inferred 98.9 3.8 12,112
-------------------------------------------------------

---------------------------------------------------------------------------
Category Net Attributable to Moto Group Operator
---------------------------------------------------------------------------
Tonnes Grade Contained
(millions) (Au g/t) Metal (koz)
---------------------------------------------------------------------------

Mineral Reserves
Proved - - - Moto Group
Probable 22.7 3.2 2,364 Moto Group
---------------------------------------------------------------------------
Sub-total 22.7 3.2 2,364
---------------------------------------------------------------------------

Mineral Resources
Measured - - - Moto Group
Indicated 46.7 2.8 4,218 Moto Group
Inferred 59.3 3.8 7,267 Moto Group
---------------------------------------------------------------------------

Source: Refer to Qualified Persons section for details of Qualified Persons
(TSX) or Competent Persons (AIM) with respect to the quotation of
Mineral Reserves and/or Mineral Resources.


Note: The Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Mineral Reserves.

Exploitation of Resource Base and Future Direction

The FS evaluated the Project's Indicated Mineral Resources of 77.8 Mt at 2.8 g/t Au for 7.0 Moz and did not take into account an additional Inferred Mineral Resource base of 98.9 Mt at 3.8 g/t Au for 12.1 Moz.

Since the completion of the PFS in August 2006, the conversion rate of Inferred to Indicated Mineral Resources has been close to 100% within the key deposits.

On this basis, the Moto Group proposes to actively develop a long term exploitation plan that includes high grade underground mining as well as expansion of planned open pits. Continued extensional exploration success further supports this initiative, with the FS, as anticipated, providing a sound start up position for future development. AMC Consultants Pty Ltd is preparing an underground concept study that will include drilling information to the end of 2007 which is expected to enhance project economics and leverage start-up capital.

FEASIBILITY STUDY SUMMARY

The Moto Gold Project is located in the north-east of the DRC and is a joint venture between L'Office des Mines d'Or de Kilo-Moto ("OKIMO") (30%), Border Energy Pty Ltd (a Moto wholly-owned subsidiary) (60%) and Orgaman sprl (10%).

Following the completion of a PFS in August 2006, the Moto Group committed to a FS for the project. Lycopodium and Cube were appointed as the principal engineering and geological consultants respectively to manage and undertake the study. Contributors to key components of the study are as follows:



Cube Consulting - Geological database management, interpretation and
validation
- Resource estimation
- Mine design & scheduling, mine capital & operating
cost estimates

Ammtec - Metallurgical testwork

Lycopodium - Metallurgical interpretation & process plant design
- Infrastructure design
- Project implementation
- Capital & operating cost estimation

Knight Piesold - Site geotechnical & hydrological assessment
- Tails storage facility design & geochemical assessment
- Hydropower assessment & design
- Site infrastructure design including roads, civils &
bridges

SGS Ghana - Environmental and social licence assessment


All figures provided in the Feasibility Study Summary represent the Moto Gold Project, being 100% of the project, unless otherwise stated.

Resource Estimation, Geotechnical Assessment & Mine Planning

Since the PFS, an extensive infill, sterilisation and technical drilling programme consisting of over 600 holes totalling 75,000m of RC and Diamond Drilling was completed across the project including sterilisation and geotechnical drilling totalling 18,000m. Resource interpretation and estimation work used drill data available at the end of February 2007.

Geological logging, sample preparation, assaying, resource modelling and estimation works associated with the FS were conducted in accordance with Moto's QA/QC systems. These systems were independently audited by Snowden Mining Industry Consultants ("Snowden") in 2006 and were found to be of good industry standard with Snowden also endorsing Cube's resource estimates and expressing an opinion on the Project's upside potential.

Geo-statistical analysis was undertaken on the mineralised material prior to grade estimation of the resources using Ordinary Kriging on a 20x20x5m panel. Uniform Conditioning with a 5x5x2.5m SMU was applied to these estimates to yield a recoverable Resource estimate. The Mineral Resources were then reported above a range of grade cut-offs for the mining study.

As at April 2007, the estimated Project Mineral Resources(1) above a 1 g/t gold cut-off are; Indicated Mineral Resources of 77.8 Mt at 2.8 g/t Au for 7.0 Moz and Inferred Mineral Resources of 98.9 Mt at 3.8 g/t Au for 12.1 Moz.

(1) All the mineral resource estimates undertaken by Cube have been classified and reported in accordance with The 2004 Australasian Code for Reporting of Mineral Resources and Ore Reserves (2004 JORC Code). The 2004 JORC reporting guidelines are equivalent to the guidelines adopted for the Canadian National Instrument 43-101.



--------------------------------------------------------------
Moto Gold Mines - Moto Gold Project April 2007
--------------------------------------------------------------
Mineral Resources Greater than 1.0 g/t Gold
--------------------------------------------------------------
Indicated Inferred
-------------------------------------------------
Gold Gold
Deposit Mt Gold g/t '000 Oz Mt Gold g/t '000 Oz
--------------------------------------------------------------
--------------------------------------------------------------
Pakaka 17.52 2.5 1,393 - - -
Gorumbwa - - - 8.29 5.2 1,374
Kibali - - - 17.08 2.2 1,206
Mengu Hill 6.57 3.4 720 0.16 2.4 13
Mengu Village 1.36 1.8 77 - - -
Karagba 7.96 2.7 691 21.76 3.1 2,151
Chauffeur 25.51 3.3 2,695 24.47 5.6 4,427
Durba 2.65 3.3 277 3.19 2.3 238
Sessenge
Deeps - - - 11.57 5.2 1,923
Megi - - - 4.14 2.1 277
Marakeke - - - 2.41 1.7 134
Kombokolo 1.91 2.6 162 0.05 2.7 4
Sessenge 8.72 2.4 666 0.88 2.2 63
Ndala - - - 0.26 4.0 34
Pamao 5.62 1.9 347 4.58 1.8 268
--------------------------------------------------------------
Total 77.82 2.8 7,030 98.85 3.8 12,112
--------------------------------------------------------------


Note: The Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Mineral Reserves.

A geotechnical evaluation program using information derived from purpose drilled geotechnical diamond core holes recommends inter-berm mining angles ranging between 31 degrees and 41 degrees in the weathered rocks and between 35 degrees and 57 degrees for fresh rock. As the project matures, these parameters will be further optimised.

Whittle open pit optimizations were undertaken on each deposit based on the Indicated Mineral Resources. Mining costs were generated from first principles, benchmarked with similar operations and then applied by depth from the surface. Open pit designs were based on the US$550/oz optimization shells, with staging incorporated to yield balanced mining fleet requirements and access preferential mill feed. A total of 6 pits are planned to be mined within the Moto Gold Project encompassing total Probable Mineral Reserves of 37.8 Mt at 3.2 g/t Au for 3.9 Moz.

The Probable Mineral Reserves are based on the Indicated Mineral Resource base only. It follows that significant upside exists for the project with the potential for conversion of the 12.1 Moz Inferred Mineral Resource base as a result of additional drilling. The breakdown per project area is listed below.



---------------------------------------------------------------------------
---------------------------------------------------------------------------
Moto Gold Project - Probable Mineral Reserves
---------------------------------------------------------------------------
Oxide Transitional Fresh Total
-----------------------------------------------------------
-----------------------------------------------------------
Deposit Mt Au Au Mt Au Au Mt Au Au Mt Au Au
g/t koz g/t koz g/t koz g/t koz
---------------------------------------------------------------------------
---------------------------------------------------------------------------

KCD (Durba) 2.7 3.2 269 2.1 3.6 246 14.3 3.7 1,682 19.0 3.6 2,198
Kombokolo 0.1 2.4 8 0.1 3.4 12 0.5 3.9 60 0.7 3.6 81
Mengu Hill 1.8 3.3 184 1.0 4.3 145 1.6 3.8 195 4.4 3.7 524
Pakaka 1.7 2.4 133 0.5 3.0 51 4.9 2.9 447 7.1 2.8 631
Pamao 0.3 1.6 14 0.3 2.0 21 1.6 2.2 114 2.2 2.1 149
Sessenge 1.3 2.2 89 0.5 2.8 43 2.6 2.6 218 4.3 2.5 349
Mengu Village(i) 20kt 1.8 1 40kt 2.2 3 0.1 2.2 4 0.1 2.1 8
---------------------------------------------------------------------------
Total 7.7 2.8 698 4.6 3.5 520 25.5 3.3 2,722 37.8 3.2 3,940
---------------------------------------------------------------------------
---------------------------------------------------------------------------


Note: The Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Mineral Reserves.

(i) While the Mengu Village pit contains Probable Mineral Reserves, it has been excluded from plant feed schedules and Project financial modeling due to its comparatively small magnitude.

Metallurgical Assessment, Process Design & Gold Output

Metallurgical testwork performed by Ammtec Ltd. under the direction of Lycopodium indicates that a simple flowsheet, incorporating primary crushing, SAG milling to a product size of 80% passing 106 microns followed by a carbon in leach circuit will yield optimum recovery for oxide ores. Transition and fresh ores will utilise the same comminution circuit followed by flotation to produce a concentrate that will be reground to 15 microns and then leached in a dedicated CIL circuit. The float tail will be leached separately.

Test data shows the ore is of low to medium competency with a Bond Ball Mill Work Index mill design of 7.2 kWh/t and 8.2 kWh/t for the oxide and fresh ores respectively. No preg-robbing issues are expected and tested composites yielded 25% gravity recoverable gold.

Nominal predicted metallurgical recoveries are:



----------------------------------------------------------
----------------------------------------------------------
Au Predicted Recovery(%)
Pit ------------------------ Feed Proportion
Oxide Transition Fresh
----------------------------------------------------------
----------------------------------------------------------
KCD (Durba) 85.5 89.5 83.3 50%
----------------------------------------------------------
Kombokolo 95.6 95.3 74.0 2%
----------------------------------------------------------
Mengu Hill - 88.7 71.0 12%
----------------------------------------------------------
Pakaka 88.7 - 81.1 19%
----------------------------------------------------------
Pamao 90.9 - 84.4 6%
----------------------------------------------------------
Sessenge 90.3 75.3 80.0 11%
----------------------------------------------------------
----------------------------------------------------------


Total gold output is 3.3 Moz over 81/2 years and includes low grade material (3.68 Mt at 1.18 g/t Au) processed at end of mine life as illustrated in the following chart.

The MOTO PROJECT OUTPUT chart is available at the following web link: http://www.ccnmatthews.com/docs/mgl1214chart.pdf

Note: Output based on 4.5 Mtpa throughput with operation for 5 months in Year 9.

Infrastructure & Facilities

Project infrastructure development includes roads, housing, industrial parks, community facilities, an air strip and power generation facility. A 24 MW run-of-river hydro-electric power station was assessed and found to be feasible and will provide 86% of the annual power requirements. The FS assumes that the necessary approvals and permits for the hydro-electric power station will be obtained. Installed diesel generators will supplement hydro-electric power supply during the dry season and assist during peak load periods. It is proposed that all development activities will conform to internationally accepted standards with project development focusing on sustainability including the empowerment of local communities and business. Principal and district access roads will be upgraded to support the operations. These will greatly benefit and promote the development of regional and local industries and communities.

A HDPE lined tailings storage facility with an ultimate capacity of 44 million tonnes has been designed for a staged construction throughout the Project's life. The area below the pond will be lined to prevent seepage.

Costs Estimates and Financial Evaluation

Estimated processing operating costs (including general and administration) are estimated for the three types of plant feed - US$11.75 /tonne oxide, $15.38 /tonne transition and US$13.93 /tonne primary ore.

Surface mining operating costs averaged US$1.58 /tonne over the mine life on an owner mining operating basis. The cost of mining ore incorporated a premium over the unit cost of mining waste. Costs include provision for ongoing rehabilitation of mining areas.

The Project development costs are estimated at US$483M. This includes the mining fleet (US$78M), treatment plant, tailings storage facility and water dams, services, infrastructure, a hydro-electric power installation (US$80M), pre-production, working capital and contingency. The capital cost estimate was completed to a confidence level of +/- 15% with the main elements summarised below:



-------------------------------------------------------------
Description US$M % Total
-------------------------------------------------------------
-------------------------------------------------------------
Site Establishment & Construction Costs 60.9 13
Treatment Plant Costs 75.7 16
Reagents and services 30.0 6
Infrastructure Costs 110.7 23
Mining Costs 111.8 23
EPCM & Specialist Consultants 53.5 11
Owners costs including logistics & resettlement 40.3 8
Owners Operations Costs 2.2 -
-------------------------------------------------------------
Total Capital (including contingency) 483.0 100
-------------------------------------------------------------
Contingency Amount Included in Above Items 47.4 11
-------------------------------------------------------------


Financial analysis for the FS has been undertaken on the basis of the Project being a stand-alone entity. Standard evaluation formats are followed with the inclusion of costs for initial capital and pre-production costs, operating costs and sustaining capital.

Working capital and 'first-fill' consumables stock values have not been returned at end of mine life. Salvage values of equipment, plant and other high value items have not been included. Site closure costs are excluded, although progressive rehabilitation costs for mining areas have been included in operating cost estimates. This is consistent with the findings of the FS indicating that the Project has significant potential to extend past the evaluated mine life.

Project sunk costs to the end of September 2007 have been included for purpose of taxation calculation but do not feature directly in the calculation of total capital expenditure for the project.

DRC corporate taxes and precious metal royalties have been included, as well as major levies for expatriate labour costs. Accelerated depreciation provisions allowed under DRC legislation have been incorporated where applicable.

Evaluation of the FS was undertaken on a project basis and excludes non project costs related to agreements between Moto and OKIMO and surface rental due to the state.

No forward sales of product are assumed and a gold sale price of US$600 /oz was used for base case financial evaluations. Net project cash flows are stated below.



-----------------------------------------------------------
Net Project Cash Flows ($USM)
-----------------------------------------------------------
Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9
-----------------------------------------------------------
(497)(i) 83 114 129 126 110 84 49 114 20
-----------------------------------------------------------

(i) Note: US$497m includes provision of US$14m for pre-production mining
expenditure related to project development.


Tenure

Moto continues to wait for the formal publication of the report of a commission set up to review 60 mining agreements entered into by the para-statal companies of the DRC Government and the timetable for its release remains unclear. As far as Moto is aware, the Commission's report may include recommendations, which will apply to most mining companies, that certain financial terms of the partnerships be renegotiated.

In the meantime, Moto is seeking to finalize discussions in relation to a draft consolidated lease pursuant to the terms of the protocol agreed between OKIMO and Borgakim Mining sprl, (a Moto subsidiary), in November 2006 ("November 2006 Protocol"). It is noted that certain of the areas which originally comprised the Moto Gold Project under Moto's existing contracts with OKIMO have not been included by the Mining Registry in the OKIMO exploitation permits recently issued to OKIMO following its application in April 2007 to transform its title in accordance with the Mining Code. Following an evaluation of the new OKIMO exploitation permit co-ordinates against the co-ordinates agreed under the November 2006 Protocol, the area to be covered by the new consolidated lease is to be reduced from 2,350 sq km to 1,841 sq km.

Conclusion

Given the solid foundation presented by the FS, Moto proposes to work with its joint venture partners to determine the best way to progress and enhance the economics of the Project in the best interests of shareholders.

Moto wishes to thank the government of the Democratic Republic of Congo and OKIMO for its ongoing support and looks forward to working with all stakeholders to successfully develop the Moto Gold Project. The successful development of the Project will result in significant benefits to all the stakeholders, including the state and the local community, and will add to the reputation of the Democratic Republic of Congo as a major participant in the international resources sector.

The Board of Moto would also like to thank the Moto staff for their contributions in bringing this Feasibility Study to fruition. In particular the Board would especially like to thank Klaus Eckhof and Andrew Dinning for their valued contributions.

Klaus has informed the Board that with the Feasibility Study completed, he would like to step down as President and CEO and as a Director of Moto. The Board also announced that in addition to his duties as Chief Operating Officer, Andrew Dinning will also assume the duties of President upon Klaus' resignation.

The Board looks forward to the development phase of the Moto Gold Project.

Caution Regarding Forward Looking Statements

Statements regarding Moto Goldmines Limited's plans with respect to developing the Moto Gold Project are forward-looking. There can be no assurance that any mineralisation will be proven to be economic, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits identified with the project or that future required regulatory approvals will be obtained.

Risk Factors

Significant expenditure is required to develop the mining project and the infrastructure required. In addition, there can be no assurance that the Moto Gold Project will be fully developed in accordance with the Group's current plans or completed on time or to budget.

Feasibility studies derive estimates of cash operating costs based on anticipated tonnage and grades of ore to be mined and processed, the configuration of the ore body, expected recovery rates, comparable facility and equipment operating costs, anticipated climatic conditions and other factors. No assurance can be given that such estimates are correct or that the Moto Group will be able to extract minerals in sufficient quantities or of a sufficient grade to justify the estimates in such studies or the Moto Group's commercial operations. As a result, it is possible that the Moto Group's actual operating costs and economic returns may differ from those currently estimated.

The mineral resources data included in this document are estimates only and no assurance can be given that the estimated quantities or grades of minerals will be available to extract, or that any particular level of recovery of minerals will in fact be realised.

Moto has been formed specifically to implement the Moto Gold Project and had no prior operating history of mining production or history of putting into production development-stage mining projects and as a consequence presently has currently no free cash flow from operations. The Moto Group's ultimate success will depend on its ability to generate cashflow from its properties in the future and employ and retain an appropriately experienced workforce.

Moto awaits the publication of the report of the commission set up to review the agreements entered into by para-statal companies of the DRC Government. The review might (i) require the Group to enter into discussions or negotiations with OKIMO or the government of the DRC regarding its rights with respect to the Moto Gold Project; and (ii) impair the Group's security of tenure and its ability to secure additional financing in the future. This could have a material adverse effect on the Moto Group's business, operating results and financial position.

Qualified Persons

Scientific or technical information in this news release has been prepared under the supervision of Greg Smith, a geological consultant to Moto Goldmines Ltd and a qualified person under National Instrument 43-101 and a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Greg Smith has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Greg Smith consents to the inclusion in this report of the Information, in the form and context in which it appears.

The Information in this report that relates to Mineral Resources and Ore Reserves is based on information compiled by Rick Adams and Ted Hansen who are members of the Australasian Institute of Mining and Metallurgy (AusIMM) and are qualified persons under National Instrument 43-101. Rick Adams and Ted Hansen are directors of Cube Consulting Pty Ltd. Rick Adams and Ted Hansen have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent Person as defined in the December 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Rick Adams and Ted Hansen consent to the inclusion in this report of the Information, in the form and context in which it appears.

The Information in this report that relates to the technical aspects of the mine engineering discipline is based on information compiled Cube Consulting Pty Ltd under the direction of Quinton de Klerk who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) and a qualified person under National Instrument 43-101. Quinton de Klerk is a director of Cube Consulting Pty Ltd. Quinton de Klerk has sufficient experience which is relevant to the type of deposit and open pit mining methods under consideration and to the activity which he is undertaking to qualify as a competent Person as defined in the December 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Quinton de Klerk consents to the inclusion in this report of the Information, in the form and context in which it appears.

APPENDIX 1

Measurement Abbreviations



Mtpa millions of tonnes per annum
g/t grams per tonne
Moz millions of ounces
Mt millions of tonnes
US$ United States of America Dollars
oz ounce(s)
koz thousands of ounces
m metre(s)
M million
MW megawatt
kWh/t thousands of watt hours / tonne


Glossary of Terms



"Au" The Periodic Table abbreviation for the element of
gold.

"Diamond Drilling" This technique involves a pipe encrusted in
industrial diamonds being used to drill through
rock layers, with a "core" of rock being left in
the centre of the pipe. The "core" of rock can be
retrieved for logging and sampling.

"Feasibility Study" A 'Feasibility Study' is a comprehensive study of a
deposit in which all geological, engineering,
operating, economic and other relevant factors are
considered in sufficient detail that it could
reasonably serve as the basis for a final decision
by a financial institution to finance the
development of the deposit for mineral production
(NI 43-101, Section 1.2 Definitions).

"Indicated Mineral An 'Indicated Mineral Resource' is that part of a
Resource" Mineral Resource for which quantity, grade or
quality, densities, shape and physical
characteristics can be estimated with a level of
confidence sufficient to allow the appropriate
application of technical and economic parameters,
to support mine planning and evaluation of the
economic viability of the deposit. The estimate is
based on detailed and reliable exploration and
testing information gathered through appropriate
techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are
spaced closely enough for geological and grade
continuity to be reasonably assumed.

"Inferred Mineral An 'Inferred Mineral Resource' is that part of a
Resource" Mineral Resource for which quantity and grade or
quality can be estimated on the basis of geological
evidence and limited sampling and reasonably
assumed, but not verified, geological and grade
continuity. The estimate is based on limited
information and sampling gathered through
appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes.

"JORC Code" The Australasian Code for Reporting of Mineral
Resources and Ore Reserves, prepared by the Joint
Ore Reserves Committee of the Australasian
Institute of Mining and Metallurgy, Australian
Institute of Geoscientists and Minerals Council of
Australia.

"Mineral Resource" or A 'Mineral Resource' is a concentration or
"Resource" occurrence of diamonds, natural solid inorganic
material, or natural solid fossilized organic
material including base and precious metals, coal,
and industrial minerals in or on the Earth's crust
in such form and quantity and of such a grade or
quality that it has reasonable prospects for
economic extraction. The location, quantity, grade,
geological characteristics and continuity of a
Mineral Resource are known, estimated or
interpreted from specific geological evidence and
knowledge.

"Ordinary Kriging" A mathematical method that uses linear weighted
combinations of the available data to estimate
unbiased block grades with the aim of minimizing
the variance of the error.

"Pre-Feasibility 'Pre-Feasibility Study' and 'Preliminary Feasibility
Study" or "Preliminary Study' mean a comprehensive study of the viability
Feasibility Study" of a mineral project that has advanced to a stage
where the mining method, in the case of underground
mining, or the pit configuration, in the case of an
open pit, has been established, and which, if an
effective method of mineral processing has been
determined, includes a financial analysis based on
reasonable assumptions of technical, engineering,
operating, economic factors and the assessment of
other relevant factors which are sufficient for a
Qualified Person, acting reasonably, to determine
if all or part of the Mineral Resource may be
classified as a Mineral Reserve (adapted from NI
43-101, Section 1.2 Definitions). A Pre-Feasibility
Study is at a lower confidence level than a
Feasibility Study.

"Probable Mineral A 'Probable Mineral Reserve' is the economically
Reserve" mineable part of an Indicated and, in some
circumstances, a Measured Mineral Resource
demonstrated by at least a Preliminary Feasibility
Study. This Study must include adequate information
on mining, processing, metallurgical, economic, and
other relevant factors that demonstrate, at the
time of reporting, that economic extraction can be
justified.

"Qualified Person" A 'Qualified Person' means an individual who is an
engineer or geoscientist with at least five years
of experience in mineral exploration, mine
development or operation or mineral project
assessment, or any combination of these; has
experience relevant to the subject matter of the
mineral project and the technical report; and is a
member or licensee in good standing of a
professional association.

"RC Drilling" This technique employs a dual walled string of
drill rods, with a compressed air driven percussion
hammer at the end of the drill string. The type of
hammer used at Moto is known as a "Center Sample
Hammer" with a hollow center that allows the sample
to pass into the dual wall drill pipe right at the
face of the drill bit. The rock fragments will be
taken up and will pass through hollow tubing, until
the chippings and fluids reach a "cyclone." The
cyclone separates out the rock fragments from the
drill medium and presents them to a sampling
device.

"Resource Domains" Individual concentrations of mineralization
separated geographically or statistically from each
other.

"Uniform Conditioning" A mathematical method that allows the
discrimination of ore and waste at a selective
mining unit size within an estimated panel of
significantly larger size. In theory, this provides
a more accurate prediction of estimated resource
grade above a cut off.


ARBN 113 274 874

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