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QUARTERLY REPORT FOR PERIOD ENDING 30 JUNE 2008

HIGHLIGHTS

• SIGNING OF INDIAN IRON ORE MOU
• INDEPENDENT EXPERT REPORT RECEIVED ON INDIAN IRON ORE
• INITIAL DRILL RESULTS AT LITTLE BYGOO MINE, ARDLETHAN
• EGERTON GOLD DRILLING COMMENCES

1. INDIAN IRON ORE (Subject of an MOU between Cluff and Sai Constructions, Bangalore)

1.1 SIGNING OF MOU
In early May the Company announced that four Iron Ore Mining Lease Applications, near Chitradurga in the Indian State of Karnataka, were the subject of a Memorandum of Understanding between Cluff Resources Pacific NL and Sai Construction, Engineers and Contractors, of Bangalore, India.

The MOU makes provision for the establishment of a Joint Venture Company, Karnataka Iron Ore Mining Pte Limited, in which the shares will be held in the proportion Elephant Gold Pty Ltd 60%, Sai Constructions 40%.

Map of India showing location

Details of the four Mining Lease Applications are listed below:

Signing of this MOU presents the Company with an opportunity to investigate potential iron ore mine development which is aimed at generating a cash flow in the short to medium term.

1.2 INDEPENDENT EXPERT’S REPORT INTO KARNATAKA IRON ORE

The Report, which was received in late July, gave a comprehensive assessment of the current state of the Karnataka Iron Ore industry and the various risk factors to be considered when proposing to develop exploration and mining activities on the tenements which are the subject of the MOU.

2. TIN PROJECTS

2.1 LITTLE BYGOO DRILLING

Little Bygoo Tin Drilling

The initial open hole percussion drilling program at Little Bygoo was completed in mid-June, with 1,613 metres drilled in nine holes. A total of eleven holes have been drilled to date. Hole locations are shown on the figure below and former open cuts are present on the greisen subcrops west of the drill holes.

Assay results from the initial Cluff drilling (LB 1 and LB 4) were received, indicating that neither hole intersected a tin mineralised zone. Replotting of the cross sections shown below demonstrates that the tin bearing rocks are not tabular but plunging to the east, and the holes may have been too shallow to intersect mineralisation. Hole LB 1 was terminated because of lack of additional drill rods at the time, and can now be deepened if warranted. Hole LB 4 was near the limit of the drilling rig. An alternative interpretation is that the greisen is displaced between the drill holes by a fault. These possibilities are being tested by both the recent drilling, and planned future drilling.

The more recent percussion drilling program (shown in red) was aimed to infill areas between previous drilling by Ardlethan Tin (shown in blue) to allow possible determination of an inferred resource of tin in the area between the open cuts and Cluff’s initial drilling. Future drilling will aim to extend such a resource to the north and south, and investigate its presence and mode of occurrence to the east, where mineralisation appears to be increasing in grade. This could be accomplished by the drilling of angle holes using the company’s newly modified drilling rig.

Samples from the percussion drilling were sent to the assay labs following the completion of the program, and are being tabulated by Cluff’s geological consultants with a view to generation a three-dimensional model of the inferred geological structures.

3. EGERTON GOLD PROJECT (Cluff earning up to 75% from Tech-Sol Pty Ltd)

Drilling of the first hole on the Egerton Gold Project commenced in late May, using the Company’s wire line diamond coring rig, which was modified to allow drilling of angled holes. Driilling was targeted to allow determination of the grade and thickness of the downward extension of the quartz reef beneath old working of the Black Horse Mine.

A digital model collating historical mining data was constructed (Alan Younger Oroya Mining Ltd), which shows the location of the old shafts, level workings and mined areas (shown in figure below). Also exploration drill holes drilled since 1980 (drilled by WMC & Minico Pty Ltd) have been added to the model. Using this model and historical records a drilling program was designed to obtain samples of the projected gold bearing regions.

Following the commencement of drilling in late May, the initial drilling proved to be very problematic. Weak fine grained sandstones with bands of quartz have been encountered, the ground collapses if not supported and is very porous. The quartz is very abrasive on the drilling equipment. Also voids have been drilled into that have been difficult to drill through because of collapsing ground.

The first hole (BH_T1_1) was abandoned at 126m because of collapsing ground. Upon recommendations from local drillers and local geologists Cluff purchased larger diameter drilling equipment and recommenced this hole two metres away. As at 30-7-08 we have drilled through two voids and are currently casing through the second void, at a depth of 148 metres. Drilling has been difficult but we have progressed slowly.

Summary of Exploration Target: Exploration targets totalling between 2.2 and 3.3 million tonnes of gold bearing quartz with grades between 3 and 12 grams/tonne have been outlined below old workings of the Black Horse, the Egerton and the Mundic Lode Mines. This represents a total exploration target range of between 340,000 and 1,150,000 ounces of gold. It should be noted that potential quantity and grade of the targets is conceptual in nature, there has been insufficient exploration to define a Mineral Resource, and it is uncertain if further exploration will result in the determination of a Mineral Resource.

The Black Horse exploration target is below 380 metres depth and may contain recoverable gold within the continuation to depth of a previously mined ore shoot. Records for the Black Horse Mine suggest that significant areas within and close to the existing level development were not mined as they were considered to be low grade at the time.

The targeted ore shoot was partly developed for mining from 380 to 600 metres depth by the Black Horse Shaft and by many development tunnels, but reports indicate that it was not extracted before the mine closed in the early 1900s. A 3.5 metre mining width for this target has been assumed, based on this being the apparent average mining width in the past. Grade is inferred to be between 6 grams/ton, the lowest grade reported recovered from the mine, and 12 grams/ton (less than 16 grams/ton, the highest grade reported recovered).

4. DIAMONDS

4.1 BINGARA AND COPETON DIAMOND PROJECTS
Discussions with potential Joint Venture Parties continued.

5. RUBY MINE (Cluff 100%)
The successful regeneration of mined areas continues. No mining activities were undertaken on the Ruby Mine during the Quarter

6. FINANCE
A placement of 112,340,000 ordinary shares was made via Martin Place Securities Pty Limited at 0.9 cents per share, which raised $1,011,060 before the costs of the Issue.

The information in this report that relates to mineral exploration or mineral resources is based on information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy included in a list promulgated by the ASX from time to time. Peter John Kennewell is a full time employee of Cluff Resources Pacific NL and has 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 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Identified Mineral Resources, and Ore Reserves”. Peter John Kennewell consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Peter Kennewell,
MANAGING DIRECTOR
31July 2008