EMED Mining's exploration areas in Cyprus are centred on the Troodos ophiolite complex. The targeted mineralisation style is volcanic-hosted massive sulphide ("VHMS") copper deposits under shallow cover rocks, similar to the larger past Cyprus copper mines - three of which exceeded 10 million tonnes of ore running at grades between 1% and 4.5% copper.

Rising metal prices have materially improved the economics of several known base-metal deposit on EMED Mining's tenements in Cyprus. This prompted an evaluation of the Company's prospects in Cyprus in the context of exploration insights developed by the EMED Mining team. This review identified the Klirou Copper-Zinc Project as a high priority.

Whilst EMED Mining's highest copper-related priority is in Spain, low-cost exploration and evaluation work will continue in Cyprus on various targets and opportunities.

Klirou Copper-Zinc Project

The Klirou Copper-Zinc Project is located approximately 20km southwest of Nicosia, Cyprus.

In late 2007, AMC completed an independent review of the Klirou Copper-Zinc Project.  Financial modelling based on the available information and work completed to date continues to indicate that the project is worthy of further work. An integral part of the envisaged project would be to utilise the nearby Mitsero processing plant, owned by EMED Mining's 5% partner Hellenic Mining Company, to treat ore and produce saleable concentrates.

This review highlighted the following key areas for further work before justifying the commencement of a full feasibility study for the Klirou Copper-Zinc Project:

• Expansion of resources through successful exploration.
• Diamond core drilling to verify and upgrade categorisation of known resources, as well as collecting samples for further metallurgical testwork.
• Further assessment of the refurbishment of the nearby Mitsero processing plant, as well as preparation of a metallurgical plan for the resources and a processing strategy.
• Collection and collation of firm cost estimates.

Utilising historical and recent drillhole data, EMED Mining estimated the following Mineral Resources for the Klirou Copper-Zinc Project:

Klirou Copper-Zinc Project- JORC-Compliant Mineral Resource Estimate

The Klirou resource extends from the surface to approximately 200 metres below surface and is potentially mineable by open-pit methods. For further details on the methodology and data relating to this resource estimate, view the JORC Code Checklist- Klirou Prospect (40KB pdf).

Potential remains to increase these resources by infill drilling and step-out drilling. Some of the deposits are likely to have faulted extensions and may have repeats along strike within areas containing geophysical anomalies.

Exploration Strategy in Cyprus

The Directors believe that a significant exploration opportunity exists in the areas covered by the Group's prospecting permits and applications in Cyprus for the following reasons:

• it is recognised that, although mineralisation occurs throughout both the Upper Pillow Lavas and the Lower Pillow Lavas (being the upper and lower units of what is known as the extrusive sequence of basalt pillow lavas), more than 90 per cent of the copper mined in the Troodos Complex has come from deposits within the Upper Pillow Lavas;
• by focusing on areas of shallowly dipping Upper Pillow Lavas, especially where it dips under the sedimentary cover, the Group intends to access opportunities which have been under-explored by past explorers; and
• the ability to use new techniques in reprocessing and modelling of the extensive historic geological and geophysical data in order to identify priority targets.

Simplified geological map of Cyprus showing the Troodos Complex in the southwest, the location of EMED MiningPermits and major historical copper districts.

EMED Mining is primarily exploring for non-outcropping VHMS deposits (i.e substantial mineralisation is not exposed at the surface), largely within the Upper Pillow Lavas of the Troodos Complex. The Company has adopted the following approach:

• Interpretation of extensive historical exploration data using a modern 3D database;
• Detailed geological mapping to enable the construction of cross-sections of the Upper Pillow Lavas;
• Ground geophysical surveys including Induced Polarisation (IP) and Electromagnetic (EM) methods, which should enable deeper and more accurate target location than was historically possible; and
• Drilling of selected targets.

EMED Mining's exploration is currently focused on the Klirou, South Mathiatis, North Alestos and South Pano Koutrafas prospects.

Further Information

Announcements by EMED Mining relating to exploration in Cyprus include:

• 7 January 2008 - Update on Klirou Copper-Zinc Project & Other Opportunities in Cyprus
• 15 February 2007 - Positive PreliminaryFeasibility Study for Klirou Copper-Zinc Project
• 19 October 2006 - Good Progress in Cyprus with Preliminary Feasibility Study
• 21 August 2006 - Pre-Feasibility Study for Klirou Copper-Zinc Project