Gondwana Resources Limited

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Parker Range Gold Project

Gondwana holds interests in a large portfolio of prospective tenements located in the Southern Cross Greenstone Belt immediately south of St Barbara’s Marvel Loch Gold Operations and 80km north of Western Areas Forrestania Nickel Operations. The Southern Cross area is a well recognised regional mining centre offering excellent established infrastructure and a long gold mining tradition. Past production and current resources in the region exceed 12Mozs of gold and 1,100,000t of nickel valued at over A$50B (as at 04 March 2008).

Location Map showing Parker Range tenements with TMI Magnetic Image

The Company has identified several gold prospects to date and has drilled to evaluate resources at Buffalo and Spring Hill. Numerous gold prospects require more detailed evaluation in light of a significant price rise over the past five years. Several new prospects are expected to emerge from a close-spaced geochemical survey of the Company's tenements in Q4-2007 & Q1-2008.

The Company believes that previous explorers have focused on large tonnage gold targets and, as a result, there remains excellent potential to delineate smaller high-grade gold targets near to surface that could offer the company positive cash flows through toll treatment or small-scale, boutique gold mining operations.

The Southern Cross-Marvel Loch region exhibits zones of near surface gold depletion related to oxidation of the profile (noted at the Marvel Loch and Yilgarn Star gold mines). Drill data for Gondwana's landholding reveals large strike lengths of favourable host rocks that remain untested below the base of oxidation. The Company intends to focus its exploration efforts on the three styles of gold mineralisation that have been identified within the greenstone belt:

Centenary-Spring Hill type (Parker Range Banded Iron Formation (BIF))
McIntosh type (Ultramafic Contacts)
Mt Caudan type (Sulphide-Rich Felsic Sediments & Banded Iron Formation (BIF))

Gondwana's immediate priority is to re-evaluate known gold mineralisation and actively explore other sites to increase the resource base. Drilling and/or soil sampling programs are scheduled principally at Buffalo, Spring Hill, and Centenary in 2008.

At Buffalo, the Company previously reported an inferred resource of 400 kt @ 2.6 g/t Au within a series of three, stacked quartz-sulphide lenses coinciding with the westerly dipping Parker Range BIF. Resources are drill tested on a 20m x 20m pattern, to a depth of 80m-100m over 200m of strike length. The mineralisation displays excellent consistency between sections, and remains open down dip and along strike. A re-interpretation of resources will be undertaken in 2008 following further drilling to the north of Buffalo and verification of previous drill and assay data.

At Spring Hill, 500m south of Buffalo, gold mineralisation has been identified over a 300m strike length. The area has been subject to extensive historic mining (circa 1907-39) with recorded production of ~6,800 ozs Au from 20,600 tonnes of ore. The Company intends to estimate resources for Spring Hill in 2008 together with its reinterpretation work at Buffalo. The depth continuation at both Buffalo and Spring Hill remains a priority target that requires drill evaluation together with infill testing of the three BIF horizons between the two occurrences.

Gondwana’s drilling at Centenary in 2004 identified very high-grade gold mineralisation in narrow quartz veins with best results of 3m @ 167.26g/t Au from 40m (CGRC002) and 4m @ 34.28g/t Au from 51m (CGRC005). The high grade mineralisation remains open along strike and at depth. Historic workings in the Centenary area recovered 2,500 ounces of gold from 3,700 tonnes at an average grade of 21 g/t. Additional infill drilling was planned at Centenary for 2007; however, a shortage of drill rigs in Australia has delayed the program until March 2008. Soil anomalism extends north and south of Centenary for at least one kilometre along the BIF horizons and also requires exploration drilling.

Centenary RC Drilling

Drilling in Progress at the Centenary Prospect

An infill drilling program was conducted at the Centenary prospect in March 2008 where high-grade gold mineralisation in narrow quartz veins was identified in mid-2004. In total, 10 RC holes were completed for 721m and a total of 223 samples were analysed for gold by fire assay at SGS in Perth.

The Company is very encouraged by new quartz intercepts which include 2m @ 6.65 g/t Au from 57m in CTRC08013, 2m @ 5.26 g/t Au from 77m in CTRC08014, 1m @ 4.45 g/t Au from 41m in CTRC08009 and 1m @ 33.8 g/t Au from 55m in CTRC08010.

New gold intersections within the BIF horizon include 4m @ 1.93 g/t Au from 64m in CTRC08014, 12m @ 1.38 g/t Au from 82m in CTRC08015 (~8m true width), 2m @ 7.21 g/t Au from 50m in CTRC08013 (followed by 3m of backfill material from old workings) and 1m @ 29.2 g/t Au from 63m in CTRC08018 (CTRC08018 ended in mineralisation due to bit failure).

Results confirm that high-grade gold mineralisation at Centenary is most closely associated with a 0.5m – 1.0m wide quartz vein transecting a 4m – 5m wide BIF horizon. Sulfide replacement style mineralisation along the BIF appears to be confined to approximately 20m of strike distance around the intersection. The NNW trend of the quartz veins appears to intersect and relate to at least five lines of old workings trending NNE, including the BIF horizon. This trend remains open along strike and at depth below a depth of 80m from surface.

Gondwana anticipates a return to Centenary in June 2008 to further explore the quartz veins, particularly to the southeast towards historic workings.

This resource evaluation work will form part of a more expansive exploration drill program to test new MMI soil anomalies (see below) and extend known resource areas at both Buffalo and Spring Hill.

Location Map showing Gondwana’s tenure, prospects & greenstone areas (Yellow & Green)

West of the Centenary to Spring Hill line of workings at Macintosh, Gondwana has discovered significant gold mineralisation near the contacts of a suite of ultramafic rocks extending for several kilometres. Follow-up targets include two soil anomalies south of Macintosh where previous drilling returned 33m @ 1.17g/t Au from 17m to EOH (including 5m @ 3.56g/t Au from 28m) in hole CTR115, and 7m @ 1.79g/t Au from 22m in hole CTR268. These two intersections are located on drill sections 200m apart and closer spaced drilling is required to further evaluate the gold mineralisation. A drill intersection of 6m @ 4.7g/t Au from 31m (QER017) positioned 300m north of the Searchlight workings and 200m from the next drill section, also represents a high-priority target.

At Burbidge, a 2.8km long gold anomaly located 4kms north of the Mt Caudan iron prospect, several significant wide, low-grade intersections have been intersected. Results include 18m @ 1.3g/t Au from surface (BUR132) and 18m @ 0.9g/t Au from 63m (BUR053). The nearby Burbidge East mineralisation, located north along strike from Macintosh, returned significant intersections including 4m @ 8.77g/t Au from 14m (BER046), 3m @ 3.13g/t Au from 21m (BER059), and 5m @ 4.14g/t Au from 10m (BER057). Additional drill evaluation is required at both prospects.

Investigation of the Mt Caudan line concludes that gold anomalism is displayed along the entire 6 km strike length of the Mt Caudan BIF unit. The best drill result to date has returned 18m @ 2.66g/t Au, including 7m @ 5.7g/t (MCRC008). The zone remains partly tested and additional in-fill drilling is required to fully evaluate the source of the gold mineralisation surrounding the intersection. In the northern and southern portions of the project area the strike extensions of the sulphidic sediment require soil sampling to define anomalous zones and position subsequent drillhole test locations.

Gondwana submitted Cazaly’s drill samples obtained by Cazaly Iron for separate gold analysis. PKR004 intersected 8m @ 1.23 g/t Au from 37m within the Mt Caudan BIF. Remaining holes returned only minor sporadic intercepts of low grade gold which may become significant if some form of iron ore development occurs in conjunction with gold operations.

The Toomey Hills area has returned anomalous soil geochemistry over the entire region. Significant drill intersections include 4m @ 7.9g/t Au from 46m (JSAC132) in an area adjoining 400m of untested strike potential. The target is positioned approximately 150m west of, and along strike from the old Toomey Hills Gold workings.

MMI Program

The Southern Cross-Marvel Loch region exhibits zones of near surface gold depletion related to oxidation of the profile (noted at both the Marvel Loch and Yilgarn Star gold mines). Drill data for Gondwana’s landholding reveals large strike lengths of favourable host rocks that remain untested below the base of oxidation. MMI is considered to be an ideal exploration technique for identifying drill targets in weathered environments.

Gondwana collected approximately 17,500 soil samples for MMI analysis in October-December 2007 and a further +5,000 soil samples were collected in late-February 2008 of which 3,000 were submitted to ALS for MMI analysis. ALS experienced delays in completing their analyses following the sale of a key supplier to SGS. Consequently results for the latest phase of sampling have been delayed until the June 2008 Quarter.

Sampling was conducted on 100m spaced lines with samples collected at 50m spacing over the lesser prospective areas and at 25m spacing over ground with more complex geology. Initially, alternate samples were submitted to the laboratory for analysis and later anomalous areas had the intermediate infill samples submitted to better clarify the anomaly.

At all individual sample sites the following information was recorded – sample position (easting + northing via GPS), sample colour, grain size, slope of terrain, sample depth, vegetation and rock type. This information will be used to further classify the geology into domains based on rock type.

Results are ultimately reported as response ratios which better define anomalous sample sites. The ratios are calculated by dividing the raw data by the background value for each of the elements assayed where background is determined as the mean of the lower 25% of values.

Preliminary results for the Q4-2007 sample phase are reported in the Company’s December Quarter report and show significant gold anomalies in soils surrounding the Centenary prospect and west of the Burbidge prospect at Zeus. These areas will be further drill tested following approval of Gondwana’s work plans by DEP and DoIR.

Partial results for the Q4-2007 program were reported in the Company’s December Quarter report and showed significant gold anomalism in soils surrounding the Centenary prospect and west of the Burbidge prospect at Zeus. +100ppb anomalism extends over an area of 2,500m x 500m at Centenary and 800m x 150m at Zeus. These areas will be drill tested in mid 2008 following approval of Gondwana’s work plans by DEP and DoIR.

Reversion of tenements

The reversion and rationalisation of numerous tenements in the Parker Range area continued throughout 2007 and the re-pegging and status change of certain leases has simplified DoIR obligations, allowing for more streamlined administration.

Exploration Alliance

Gondwana intends to complete its commitments under the terms of its Exploration Alliance with St Barbara Limited (2003 agreement with Sons of Gwalia group assigned to St Barbara in 2006) by Q4-2008, by which time Gondwana will have reached its expenditure commitment of $3.0M over the tenements. In the meantime, St Barbara retains the right to toll treat any gold reserves identified by Gondwana; has the right to purchase a 51% - 60% interest in any tenements hosting gold reserves by reimbursing Gondwana 3 – 5 times its total expenditure under the terms of the agreement; and retains nickel rights in respect of the Alliance tenements.

Plaints previously lodged in 2006 by Rockdale Pty Ltd have all been dismissed pursuant to a settlement agreement in Q4-2007. Plaints lodged by Richmond on tenements P77/2737-9, P77/2741, P77/2875-7, P77/2908-9, P77/3252-3 and P77/3358 have been resolved in early 2008.

REGATTA RESOURCES LIMITED

An agreement to merge the Company’s gold assets with the gold assets of Polaris Metals NL and Crusader Holdings NL into a new company called Regatta Resources Limited was terminated in June 2007 upon the withdrawal of Polaris. As a result the proposed Regatta listing has been suspended pending further negotiations with other key landholders in the district.

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