| The Company announced on August 15, 2003 that the initial exploration work on the
Mt Lofty Joint Venture tenements has been achieved, with the Company completing
its minimum expenditure of A$60,000 (C$54,000) to earn a 10% interest in the
project. The Mt Lofty project area is located near Adelaide in South Australia. The
Company acquired the right to earn an interest in the tenements in February 2003.
Pursuant to the joint venture with Eden Creek Pty Ltd the Company had an option to
earn a further 35 % interest in EL2863 for expenditure of a further A$345,000
(C$310,500). The Company has renegotiated the joint venture terms as follows:
- Absolut will earn a further 10 % (the first additional interest) by contributing A$85,000
(C$76,500) of expenditure on or before December 31, 2003. At the completion of this
phase Absolut will have a 20 % interest. The obligation of Absolut to earn this first
additional interest is conditional upon the closing of a private placement of up to
4,000,000 shares which is currently the subject of approval by the
TSX.
- Absolut will have an option to earn a further 10 % (the second additional interest) by
contributing A$85,000 (C$76,500) of expenditure by 31 March 2004. The option must
be exercised by January 15, 2004. At the completion of this phase Absolut will have
a 30 % interest.
- Absolut will have an option to earn a further 15 % (the third additional interest) by
contributing A$175,000 (C$157,500) of expenditure by 31 July 2005. The option must
be exercised by 30 April 2004. At the completion of this phase Absolut will have a
45% interest.
The Company intends to proceed with the first additional interest once the private
placement of up to 4,000,000 shares is closed. The proposed work program is currently
being finalised and details will be announced before the work program commences.
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