20th December 2001
1.3kgs Uncut Ruby recovered to Date from Trench II

Trench 11 (Sections A and B) has yielded 1.3 Kilograms of uncut ruby to date, and picking of stone is continuing. The grade of Section B of the Trench was 7.1 carats per tonne of ruby. The trench is located 500 metres downstream from the nearest previously dug trench (Trench 2A), and is outside the area of the previously announced inferred resource. Section B extends from 15 metres to 65 metres of the Trench. It also yielded 16.9 carats per tonne of corundum and sapphire.

Gravel thickness ranged from 1 to 2.5 metres, and overburden averaged 1.6 metres. Trench width was 5 metres. The gravels are comprised of recent river alluvials overlying orange gravels of the Middle Terrace.

Excavation and processing of gravels from the remainder of the trench has been completed, and picking of the plant concentrates is continuing. The trench aimed to investigate the nature and grade of gravels beneath the river flats beyond the previously announced inferred resource of 12 million carats of ruby (2,000,000 tonnes at 6 carats per tonne).

The rubies are generally smaller than those upstream, with 3.4% being over 4.5 mm in size, but are of economically cuttable size, all being in excess of 2.1mm. The largest ruby recovered was a 2.24 carat top pink stone.

The following statements apply in respect of information in this report that relates to Mineral Resources and Exploration Results:
1. The information is based on and accurately reflects information compiled by Peter John Kennewell,who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

P Kennewell
Managing Director

11th December 2001
Extension to Ruby Deposit Trench 11 Gloucester Ruby Project

Trench 11 (Section A) has yielded 7.3 carats per tonne of ruby. The trench is located 500 metres downstream from the nearest previously dug trench (Trench 2A), and is outside the area of the previously
announced inferred resource. Section A comprises the first 15 metres of the trench and also yielded 14.2 carats per tonne of corundum and sapphire.

Gravel thickness ranged from 1.2 to 2.2 metres, and overburden averaged 1.6 metres. Trench width was 5 metres. The gravels are recent river alluvials.

Excavation of Trench 11 has now been completed over its 200 metres length, and processing of the extracted gravels is continuing. The trench aimed to investigate the nature and grade of gravels beneath the river flats beyond the previously announced inferred resource of 12 million carats of ruby (2,000,000 tonnes at 6 carats per tonne).

The rubies are generally smaller than those upstream with 1.5% being over 4.5 mm in size, but are of economically cuttable size, all being in excess of 2.1 mm. The largest ruby recovered was a 1.7 carat light red stone.

The following statements apply in respect of information in this report that relates to Mineral Resources and Exploration Results:
1. The information is based on and accurately reflects information compiled by Peter John Kennewell,who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

P Kennewell
Managing Director

23rd November 2001
Increase in inferred resource from 4.6 to 12 million carats of uncut ruby, Gloucester Ruby Project

An inferred resource of twelve million carats of uncut ruby at a grade of 6 carats per tonne has been calculated for the central and upper recent alluvial flats of the Gummi River and Backwater Creek. The rubies are contained in two million tonnes of recent alluvial gravels which are easily broken up and covered by only one to two metres of black clayey sands. The gravels are generally half to two metres thick, but exceed four metres in places. This is an increase from the previously announced 4.6 million carats of uncut ruby (500,000 tonnes at 8 carats per tonne and 100,000 carats at 6 carats per tonne).

Gravels extend for four kilometres along the rivers beneath flats which are generally between 100 and 200 metres wide. Gravels extend downstream from this inferred resource for an additional three kilometres and are known to contain rubies, but have not yet been evaluated.

Sapphire is also present in the gravels at approximately the same grade as the rubies, but only 15% is of good gem quality and colour, and size is generally small.

The inferred resource is continuous, excepting for the two separate deposits containing inferred resources which occur in the Middle and the Upper Terrace gravels.

53% of the recovered stones have no inclusions visible to the naked eye when cut. Of these 75% of stones from Gummi River and 67% of stones from Backwater Creek are red or strong pink in colour, with the remainder displaying mixed colours, including orange and pale pink. 25% of recovered stones have minor fluid inclusions, with the remaining 23% cloudy.

The largest gemstones recovered were 15 and 11 carat flawed rubies, and an 11.5 carat flawless yellow green sapphire. 36% of stones from the upper Gummi River, 22% from the lower Gummi River, and 10% from Backwater Creek are greater than 4.5 mm in size.

River gravels were mapped throughout the valley utilising information from the trenches and pits, and three separate gravels with different ages and characteristics were identified. Most of the rubies occur in the gravels being deposited in the present day river, but two additional areas containing smaller inferred resources were identified in the middle and upper terrace gravels. Additional trenching and pitting may enlarge these resources.

The inferred resource was calculated from nine trenches, between 24 and 210 metres in length, and sampling between 250 and 2,650 tonnes of gravels. Three pits sampling between five and thirty tonnes each were also utilised. The alluvial flats were mapped by field observation, and divided into blocks with boundaries equidistant from adjacent sampling points. The area of each delineated flat was then multiplied by the average thickness obtained at the included sampling point to obtain tonnage, and the quantity of ruby within the area determined by multiplying by the grade. A cut off grade of two carats of uncut ruby per tonne was used. Sampling points are 125 to 300 metres apart.

The lower screen size used in the processing was 1.8 mm, but only stones greater than 2.1mm (screen size 8) were included in the grade and inferred resource calculations. Trenches were dug with a large excavator, pits with a backhoe, and all ruby bearing material was processed through a trommel and jig plant. Rubies and sapphires were separated from jig concentrates by hand picking. Tracers were used to monitor plant efficiency, which, in general, was good. Average thicknesses were taken for trenches, and weighted average grades were calculated. Minor corrections were made to grades where ground conditions necessitated that trenches taper downwards, and correction factors were determined. All trenches and pits sampled basement rocks to ensure recovery of stones in basement cracks, hence grades represent realistic mining grades. Tonnage factors were determined by measurement in the field.
Cluff is continuing a ten thousand tonne trenching program on the central area of the Gummi River gravels, and expects to have this current program completed shortly.

The ruby deposit occurs on EL 5336, which is held by NSW Gold NL, a wholly owned subsidiary of the Company, and is the subject of an option held by Television Corporation of Australia to purchase 51% on payment of $5,000,000.

The following statements apply in respect of information in this report that relates to Mineral Resources and Exploration Results:
1. The information is based on and accurately reflects information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.
3. Peter John Kennewell consents to the reporting of Mineral Resources and Exploration Results in the form and content in which it appears in the above report.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

Peter Kennewell
Managing Director

21st November 2001
32 gem diamonds per hundred tonnes from Staggy Creek

The Company's continuing bulk sampling program for diamonds has yielded a grade of 32 carats per hundred tonnes from a deposit of gas milled and corroded quartz and sand from the former open cut Staggy Creek diamond mine, five kilometres north of Copeton Dam. This result is substantially better than the previous highest grade of eleven carats per hundred tonnes for the deposit, recorded before bulk sampling was discontinued three years ago pending environmental evaluation and approvals in order to extract larger tonnages. Recent Calweld drilling has shown the sampled deposit to be six metres thick where drilled, and it extends beneath an area of several hundred square metres.

The recovered 46 diamonds weighing 8.3 carats came from twenty six tonnes of material broken up by the plant during processing of a total sample of fifty tonnes. The remaining twenty four tonnes are cemented by ironstone, and did not break up in the plant. They are now stockpiled awaiting crushing and reprocessing, but are expected to yield the same grade.

The largest gem recovered was 0.70 carats, with two smaller stones both of 0.40 carats.

The diamond bulk sampling program is continuing, and has been extended to include processing of rocks from a recently completed two week large diameter Calweld drilling program at Copeton and Bingara. Results to date, and samples yet to be processed are outlined below:

The following statements apply in respect of information in this
report that relates to exploration results:
1. The information is based on and accurately reflects information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.

For further information please contact Peter Kennewell or Walter
Penninger on (02) 9482 4655

P Kennewell
Managing Director

12th November 2001
Underwriting of rights issue.

The Company is pleased to advise that it has secured underwriting for 80% of its rights issue to shareholders and optionholders of the Company with the lead underwriter being Kefu Underwriters Pty Ltd, the principal of whom the Company has had a long association.

The directors have underwritten 20% of this commitment.

The remaining 20% of the underwriting has been reserved for other shareholders and is expected to be finalised in the next week.

Your faithfully

Walter Penninger
Chairman

8th November 2001
High ruby grades, Trench 3, Gloucester Ruby Project

Processing of the first two sections of Trench 3 has been completed. The trench was dug over 185 metres with a width of three metres, and aimed to investigate the nature and grade of gravels beneath the river flats, and of the raised gravels extending up the gentle slope from these flats. It Is located 200 metres upstream from the previously announced inferred resource of 4 million carats of ruby (500,000 tonnes at 8 carats per tonne) in the recent alluvial gravels. Results are available for the first 45 metres of the trench, to the edge of the present day river gravels.

Trench 3 commenced 70 metres from the present river bed, and extended away from the river on its flats, and up the gentle slope on the side of the valley. It is very likely that gravels similar in nature and grade to those extracted and reported on below, extend for at least seventy metres to the river. Additionally they may extend beyond the river’s present position, underlying its recent flood plain.

The gravels are 4.2 metres in thickness on the river end of the trench, and are thickening towards the river. Throughout Section A they are between 4.2 and 1.2 metres thick. Section B ranges in thickness from 1.2 to 1.5 metres, and the gravels become patchy beyond the end of the Section. Overburden throughout the trench is thin, from 0.8 to 1.3 metres.

The largest ruby recovered was a 5.13 carat stone, and three additional stones of about three and a half carats weight were obtained. 22% of the stones were in excess of 4.5 mm in size. An 11.5 carat yellow/green flawless sapphire was also found in Section A of the trench.

The sampling results are tabulated below:

The following statements apply in respect of information in this report that relates to Exploration Results:
1. The information is based on and accurately reflects information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.
Yours faithfully,

Peter Kennewell
Managing Director

26th October 2001
Rubies larger and grade lower, Trench 4

Larger rubies, including 15 carat and 11 carat flawed gems, together with four gems larger than seven carats, have been recovered from Trench 4, on the upper reaches of the Gummi River on the Gloucester Ruby project. Two 5 carat stones were cut by the Company, yielding beautiful finished gems weighing 1.6 and 1.3 carats. A 27 carat low quality blue sapphire was also found.

The rubies recovered were significantly larger than those obtained in the previously trenched inferred resource, with 36 % of these stones being larger than 4.5 mm in size, where only 7% of stones previously reported were larger than that size.

Thickness of gravel in the trench averaged two metres, and the overburden of soft clay and sand is between one and two metres.

The stones were recovered three kilometres upstream from the previously defined inferred resource of 4.6 million carats of ruby (500,000 tonnes at 8 c/t and 100,000 tonnes at 6 ct/t)

The results obtained in individual lengths of Trench 4 are outlined below:

Total plant throughput for the Trench was 2,558 tonnes, with 6,115 carats of ruby recovered. Weighted average ruby grade (corrected) for Trench 4 was 3.2 carats per tonne.

Small corrections were made in the grades to allow for the lower tonnage of gravels excavated from the base of the trench, due to the need to taper the trench downwards because of wet digging conditions, and for low tracer recovery in Section D.

The following statements apply in respect of information in this report that relates to Exploration Results:
1. The information is based on and accurately reflects information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.
3. Mr. Kennewell consents to the reporting of Exploration Results in the above manner.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

Peter Kennewell
Managing Director

11th October 2001
Diamond bulk sampling program

The Company has been extracting, during the last two weeks, seven bulk samples from its Copeton and Bingara Exploration Licences for trucking to its Copeton processing plant, and processing for diamonds. Processing commenced on 9 October, and is expected to continue for several weeks.

The samples have been selected to test concepts for an unconventional source for diamonds in the area, and generally comprise unusual water deposited rocks interpreted as slurries of ground bedrock. Details of the samples to be tested are outlined below:

For further information please contact Peter Kennewell or Walter
Penninger on (02)9482 4655.

P Kennewell
Managing Director

21st June 2001
Streak of Luck Tunnel - Recovery of fourteen gem diamonds

Fourteen diamonds have been recovered from sands and gravels from fifteen metres of the Streak of Luck Tunnel at Mount Ross, Copeton. They were recovered in two samples, from about 100 metres along the tunnel and going progressively into the hill. Details of the samples are below:

Sample A: Face of altered granite bedrock with tuffisite stringers. No diamonds were recovered. Length of sample was about 10 metres.

Sample B: Face of 0.5 metres altered granite, overlain by 1 metre of diamondiferous sand, mostly old mine backfill, overlain by 0.25 metre of carbonaceous shale, 85 tonnes were treated comprising 45% diamondiferous sand. Four stones were recovered with a total stone weight of 0.75 carats, giving a diamond grade within the sand of 1.6 carats per hundred tonnes. Length of sample was about eight metres. The tunnel intersected an old, filled shaft.

Sample C: Face of 0.5 metres of basement, overlain by 0.3 metres of unmined sand and gravel, overlain by 1 metre of carbonaceous shale. 80 tonnes were treated comprising 12% diamondiferous sand and gravel. Ten stones were recovered weighing a total of 2.7 carats, giving a diamond grade within the sand and gravel of 28 carats per hundred tonnes. Length of sample was about seven metres.

The tunnel is now progressing with a face of 1.4 metres of sands and gravels, in unmined ground.

The gravels sampled were trucked to the Company's jig based processing plant, which is located at Copeton and operates on a lower cut off screen size of 1.2mm. Diamonds are recovered from jig concentrates using a grease table.

The following statements apply in respect of information in this report that relates to Exploration Results.
1. The information is based on and accurately reflects information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

P Kennewell
Managing Director

30th May 2001
Ruby sampling results Trench 6

Section B of Trench 6, located in the upper river flats of Backwater Creek has been completed, yielding 780 carats of rough ruby and 1228
carats of corundum and sapphire at a grade of 7.2 carats per tonne of ruby and 11.4 carats per tonne of corundum and sapphire. The largest
rubies sampled weighed 3.4 and 3.2 carats, and a 5.2 carat corundum (non gem ruby) was also recovered. All tracers were recovered. 108
tonnes of gravels were treated. Backwater Creek is a tributary of the Gummi River, and this trenching is about two kilometres upstream from
the previously demonstrated inferred resource of ruby.

The trench was 27 metres long, and was an extension of Trench 6, abandoned during last winter (after yielding 5.8 carats per tonne of ruby over a length of 12 metres). The alluvial gravel thickness averaged 0.65 metres, and ranged from one metre to half a metre.

Overburden dipped from 1.5 metres thickness to 3 metres at the end of the Trench. Section C of the Trench will be completed on the adjacent side of Backwater Creek when the current trenching further upstream on the Gummi River is completed.

The following statements apply in respect of information in this report that relates to Exploration Results.
1. The information is based on and accurately reflects information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

P Kennewell
Managing Director

18th May 2001
Establishment of Ruby & Sapphire Cutting Factory

A factory capable of cutting two to three thousand carats of rubies and sapphires per month is being established by Cluff Resources Pacific in Thailand. It is expected to be fully operational within several weeks.

The factory will ensure a high and consistent quality of cut stone produced under the Company's control. Rubies will be from the
Gloucester Ruby Project, and sapphires from the Company's share of sapphires from our Joint Venture in central Queensland.

The factory will employ eight people, and be managed by Cluff personnel. The supervisor has previously prepared and cut stone under
contract for Cluff with very satisfactory results.

Cluff's aim is to build up further stocks of cut stone for sale on the wholesale market.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

P Kennewell
Managing Director

20th April 2001
Notice of Annual General Meeting

Notice is hereby given that a General Meeting of the shareholders of Cluff Resources Pacific NL will be held on the First Floor, Sydney Vista Hotel, 7-9 York Street, Sydney on 31 May 2001 at 11.00am.

BUSINESS ORDINARY RESOLUTIONS

1. To receive and approve the annual report of the Company for the
year ended 31 December 2000.

2. To re-elect Walter Penninger as a director of the Company.

W Penninger
COMPANY SECRETARY

20th April 2001
Letter to shareholders re Share Purchase Scheme

Enclosed with this letter as normal are the Annual Report and Notice of Annual General Meeting of the Company. In addition, as we have in past years, we are also offering shares for sale to our shareholders
pursuant to the Company's share purchase scheme.

This scheme is open to all shareholders, but will in particular give our smaller shareholders the opportunity to increase their shareholding at a discount on the current market price and without payment
of brokerage and stamp duty.

Share Purchase Scheme-offer closes 25 May, 2001

The Share Purchase Scheme provides eligible shareholders, irrespective of the size of their share holding, with the opportunity to purchase listed shares in multiples of 20,000 shares from a
minimum investment of $440. The maximum investment of $2,640 for 120,000 shares.

The purchase price of the shares is 2.2 cent per share. This represents a discount of 18.5% on the last sale price at the time of the announcement of 2.7 cents per share. Shareholders purchasing shares through the Share Purchase Scheme will not be liable to pay brokerage or stamp duty.

As an additional incentive shareholders purchasing shares through the scheme will be entitled to a voucher of 15% of the dollar value of shares purchased which may be used to purchase gemstones or gemstone jewellery through the Cluff Gemshop. For example shareholders purchasing the maximum number of 120,000 shares for $2640 will receive a voucher for $396 which can be used in full or partial payment for Cluff's range of gemstones or gemstone jewellery.

Full details of the Share Purchase Scheme are set out in the application form on the back of this letter. Due to regulatory considerations the number of shares available to all shareholders under the Share Purchase Scheme is limited to a maximum of 15% of the shares on issue unless the shareholders at general meeting approve
the allotment of additional shares. Accordingly applications from shareholders will be accepted on a first come first accepted basis only and shareholders are not guaranteed that their applications will
be accepted. This offer of shares under the Share Purchase Scheme closes on 5.00pm on Friday 25 May 2001 and application forms must be at the Company's office by that date.

Shareholders should note that the market price of the Company's shares may change between the date of the offer and the date when the shares are allotted pursuant to the scheme. Accordingly shareholders are advised to check the current share price prior to deciding whether to apply for shares under the scheme. Shareholders in doubt should contact their financial advisers and may contact the Company if they have any questions relating to the offer.

W Penninger
Chairman

16th March 2001
17,057 Carats of Ruby recovered, Gloucester Ruby Project

17,057 carats of uncut gem quality ruby have been recovered from Trench 2A, which extends for over 200 metres across the river flats of the Gummi River, on the Gloucester Ruby Project. The recovered rubies weigh 3.4 kilograms.

Trench 2A was 210 metres long, with a width of 3.5 metres, treating a total of 2,150 tonnes of ruby and sapphire bearing gravels systematically sampled across a representative part of the river flats (see attached map). Gravel thickness was relatively consistent, ranging from 1.5 to 2 metres along the length of the trench, while thickness of sandy clay overburden was also 1.5 to 2 metres.

The highest grade of ruby recovered was 36.1 carats per tonne from a channel at the base of the gravels. The average grade of ruby recovered throughout the trench was 7.9 carats per tonne, confirming the presence of the previously reported inferred resource of 4 million carats of ruby (500,000 tonnes at 8 carats per tonne) on the previously tested part of the flats. This trenching demonstrated that the ruby deposit extends over larger areas than were included in the previous resource calculation. The largest stone recovered was a non gem ruby weighing 10.1 carats.

The largest gem ruby recovered was 5.8 carats. 10% by weight of the stones are in excess of 4.5mm diameter. Approximately 55% are sized from 4.5 to 2.7 mm, while 35% are from 2.7 to 2.1 mm. Stones cut from these sizes represent the bread and butter of the coloured gem industry, and are sought in quantity by jewellery manufacturers. Stones of less than 2.1mm are also present in the deposit, but have not been included in the grade calculation.

Of the stones recovered, three quarters are of facet quality, with about one quarter of red colour, and about half of pink colour, suitable for cutting into beautiful gems. The remaining quarter are pink, and either slightly silky, or contain abundant transparent fluid inclusions, and may be suitable for upgrading and faceting.

22,315 carats of gem quality sapphire and non gem corundum were also recovered from the gravels at a grade of 10.2 carats per tonne. Approximately 15 % of this material is both larger than 2.7mm in size and of gem quality, and warrants cutting. The balance may be suitable for upgrading. The majority of the stones are a bright yellow, yellow green, and green, with some being a good blue colour.

Excavation of Trench 1, located three kilometres upstream from Trench 2A, on the ruby bearing Backwater Creek, a tributary to the Gummi River, will commence shortly, when access roads are completed.

The gravels were processed through the Company's trommel and jig plant on site, with the lowest screen size in the jigs being 1.6 mm. The concentrate is subsequently screened to plus 2.1 mm before further processing. All gravels removed from the trench were treated in the plant, and are reported on. Loose cubic metres were measured as having a density of 1.8 tonnes per cubic metre. Tonnages were calculated from level loader buckets fed to the plant. Tonnages treated are consistent with estimates of tonnages based on the volume of the trench, assuming an in situ density of 2.0 tonnes per cubic metre. Sample locations were determined by differential GPS. Incomplete tracer recovery was obtained, indicating some loss of ruby and sapphire through the plant. This was tested by retreating of tailings, and plant losses were demonstrated to be less than 5%. Thus the reported results are conservative. No cutting of high grades was used. The stated average grades are the average grade for the whole trench, determined by dividing the total weight of rubies (or sapphire) recovered by the total tonnage treated.

The ruby deposit occurs on EL 5336, which is held by NSW Gold NL, a wholly owned subsidiary of the Company, and is the subject of an option held by Television Corporation of Australia to purchase 51% on payment of $5,000,000.

The following statements apply in respect of information in this report that relates to Exploration Results.
1. The information is based on and accurately reflects information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

P Kennewell
Managing Director

30th January 2001
Monte Christo Mine - Discovery of Diamond Bearing Fragmental Rock

A diamond bearing fragmental rock has been exposed beneath the diamond bearing gravels of the Monte Christo mine by trenching. As the trench progressed over a distance of thirty metres, the basement rocks, interpreted by the Company as crater lake muds with a high volcanic ash content, dip gently into a depression. The massive muds beneath the previously mined pit become fractured and injected with ground basement rocks (tuffisite). This rock grades into the diamond bearing fragmental rock over the last five metres of the trench. The base of these rocks have not been exposed, and their extent is open to the south and east.

A 35 tonne bulk sample of these rocks was systematically mined to ensure that there was no contamination, and processed through the Mount Ross plant. Eight gem quality diamonds weighing 1.3 carats were recovered, for a grade of 4 carats per hundred tones. The stones recovered are generally rounded, yellow and white, and up to 0.25 carat in size. No dry screening was carried out. Traces of gold were also recovered. Overburden in the trench is about eight metres.

The geological setting of the fragmental rocks, in a depression overlain by volcanic ash shown previously to carry diamonds, and adjacent to a geological fault, indicates that they have formed within a vent zone. Boiling water and gasses would have been erupted, suggesting the presence of volcanic rocks beneath the depression. The diamond bearing gravels previously mined continue to the southwest, and are consistent with material blown out of the vent, landing in a surrounding heap.

The base of the fragmental rocks was not penetrated by the sampling. Only the edge of these rocks have been sampled at this time, and their extent is open to the south and east.

A drilling program to determine the extent and thickness of the fragmental rocks and surrounding gravels is commencing next week. It also aims to investigate the rocks beneath the depression as a primary source of diamonds.

The following statements apply in respect of information in this report that relates to Exploration Results.
1. The information is based on and accurately reflects information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

P Kennewell
Managing Director

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