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As Chairman of your company I welcome you all here today. As Eddie Maguire use to say on the footy show “WHAT A WEEK WE’VE HAD IN FOOTY”. Well what a YEAR we’ve had in mining and more particularly the turnaround Australian Mines has achieved.

Before we consider the General Business associated with today’s Annual General Meeting, I would like to give you a quick overview of the company’s achievements over the last 12 months.

A full detailed update can be obtained from the annual report.

12 months ago, the Blair nickel mine was a marginal operation with limited mine life. The company was cash restrained, bank debt of approx $2.5m and with no real nickel project development pipeline and a share price hovering around 2c/share. The mine was a month to month proposition.

Today, mainly due to the efforts of our CEO, Brett Young (who also doubles as our CFO), office staff and a new dedicated management team at Blair mine led by Mine Manager Greg Evans, the company has net cash and receivables of approx $8m, no bank debt and is generating for 2006/07 year to date a net cash surplus of approx $1m per month from the mine.

We have increased our mine nickel resources to over 5,600 nickel tonnes (after the production of 1440 Ni tonnes last year) an increase of 45% over last year, commenced drilling the very exciting Area 57 “southern” and depth extensions and continue to develop the Blair Deeps orebody. The mine life has now been increased to at least December 2008 with Area 57 and Blair Deeps orebodies still open.

Your company has also been fortunate to recruit Mick Elias as a non executive director with previous positions held including Chief Geologist for WA Nickel Operations and Nickel Resource Development at WMC Resources Ltd. It is with great pleasure I thank Mick personally on behalf of all shareholders for his significant contribution that led to Australian Mines being granted in September this year, the option to purchase the Marriots Nickel project, south of Leinster from BHP Billiton. This acquisition alone has the potential to significantly enhance shareholders wealth, generate a large cash surplus and establish your company as a nickel producer with substance and extended mine life.

The board is committed to seek other opportunities to add to these projects.

After the business of the meeting I will present in more detail an overview of our projects including updates on the Blair mine expansions, Marriots Nickel project, our nickel exploration JV with Pioneer Nickel and the progress achieved at Duplex Hill South Gold project.