WELBAR PROJECT     Myrtle/Proserpine

Merit Mining has a 100% interest in the 35 crown granted mineral claims, which comprise the Myrtle/Proserpine Properties, subject to a 3% net smelter return royalty to Newmont.

During 2000 Gold City conducted geological mapping, sampling, and geochemical/geophysical surveys on the Myrtle Property. Exploration outlined a significant drill target area, which crosses the Rainbow/Baker contact and is coincident with two multi-line Induced Polarization (IP) anomalies and strong multi-element soil geochemical anomalies within a zone of multiple north trending faults.

The Company also conducted geological mapping, sampling, and geochemical surveys on the Proserpine Property during 2000. The Proserpine exploration programs confirmed large multi-element soil geochemical anomalies and northerly trending faults, warranting next phase geophysical surveys.