MIDAS RESOURCES FIRST QUARTER ACTIVITIES STATEMENT

HIGHLIGHTS

¨     Following an update of the Fortitude Resource at Lake Carey and a Pit Optimisation study based on trucking to the Barrick Granny Smith treatment plant it has been decided to revert to a “stand-alone” gold mining and treatment model due to the high fixed costs associated with long distance trucking and treatment.

¨     The Company is, however, continuing discussions with Barrick Gold of Australia to determine if there is a lower cost alternative to the long distance trucking and treatment model.

¨     The Company commenced Diamond drilling at the Bindah gold prospect at Lake Carey in September; seven holes totalling 1500m are planned to test a high-grade target.  The objective is to increase the Resource base at Lake Carey to a level that will justify construction of an onsite treatment facility.

¨     Results for the detailed re-sampling on one metre intervals of the Intrepid aircore drilling were received and included up to 7m @ 2.37 g/t gold from 70m coinciding with a zone of hematite altered quartz-sulphide veining in banded iron formation rocks.  Further drilling is planned.

¨     The soil geochemical results for the Waitara copper-molybdenum porphyry prospect in Queensland have been received and the molybdenum results define a discrete anomaly with a maximum of 92ppm Mo, which is considered to be highly anomalous.  Follow-up work is planned.