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## COLLINGWOOD TIN PROJECT 

The Company’s Collingwood Tin Project is located in Far North Queensland approximately 30km south of Cooktown. The Company has decided to dispose these assets and is currently actively marketing the project for sale. In the meantime the project will remain under care and maintenance. 

There was no production from the project for the reporting period. The net operating loss after income tax for the Collingwood Project for the financial year was $505,195 (2010: $820,100). There was no impairment of property, plant and equipment during the year (2010: $500,000). There was no revenue from tin concentrate sales for the year. 

## TIN MARKET 

The LME Australian dollar tin price increased from approximately A$20,000/t at the commencement of the year and reached an historical high of A$33,255/t in April 2011 before receding to approximately A$24,000/t by the end of the year. 

The demand for tin returned to levels prior to the global financial crisis of approximately 360,000 tonnes per annum while production remained relatively flat at approximately 350,000 tonnes resulting in a deficit of approximately 10,000 tonnes for the 2011 financial year. 

The supply of tin continues to remain extremely tight as production from China, Indonesia and Peru which together supplies 75% of global tin-in-concentrate, continue to show signs of decline. Limited additional global production capacity is currently being seen in the short to medium term. It is estimated that the supply deficit for the 2012 financial year will be similar to 2011 financial year of approximately 10,000 tonnes. 

In the current period of substantial market volatility, the tin price has tended to trade in line with general market sentiment for base metals without cognisance of its specific supply-demand fundamentals. We expect price volatility in the current market but anticipate that the solid underlying supply pressures will ultimately prevail and create stronger pricing through 2012. 

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