• First drilling program at Windella copper prospect (EL 6928 – Canonba Project) completed December 2008

Anchor Resources Ltd’s exploration team in 2007 recognised an important corridor of copper mineralisation in northwestern New South Wales. This is a northeast-southwest trending zone which encompasses the Canbelego, Tritton and Girilambone mines, as well as the recent Larsens and Budgery copper discoveries.

The mineralised corridor parallels the Darling River and Cobar-Inglewood Lineaments, both prominent structural features of the Cobar Belt, as well as other mineralised structures in the region. Anchor Resources holds Exploration Licence EL 6928 – “Canonba” which covers strategic segments of this mineralised corridor. For a period, Anchor also held EL 6929 (shown on the attached diagram) however this licence was relinquished in 2009.

In addition, published data by Straits Resources Ltd indicates that much mineralisation in this region, including that of the Tritton and Girilambone mines, is associated with a quartzite horizon within the Girilambone Beds. This horizon extends into Anchor’s ground. Anchor’s interpretation of aeromagnetic data for the Canonba licence has highlighted at least eight anomalies with characteristics comparable to those associated with the Tritton and Girilambone mineralisation.

Anchor Resources regards the Canonba area as highly prospective for copper and gold mineralisation. The company intends to use detailed geochemistry and geophysics to define drill targets.

Managing Director, Trevor Woolfe, commented "Encouraging drill results have enhanced the economic prospectivity of the Girilambone area. Recognition of the mineralised corridor as a possible control on the mineralisation has enabled Anchor to establish a strong strategic position.”