Labyrinth Resources advised that it has commenced an extensive exploration campaign at its Comet Vale gold-copper-nickel project in Western Australia. The program is the first genuine surface exploration undertaken at Comet Vale for 15 years. This is despite the project hosting extensive high-grade gold and copper mineralisation and strong evidence of nickel laterite.

Labyrinth has recently completed a full review of the geology and known mineralisation and carried out an initial phase of on ground mapping. This process highlighted the significant potential but under-explored nature of the project. With the Company recently completing the maiden JORC Resource at its Labyrinth Gold Project in Canada, it is now ready to start a program of detailed work at its 51% -owned Comet Vale project targeting the multi- commodity potential.

Comet Vale is on the eastern limb of a regional-scale, north-south trending anticline: the Goongarrie-Mt Pleasant Anticline. The Goongarrie Monzogranite is in the core of this south plunging anticline and is enclosed by rocks of the Ora Banda Domain. The mafic-ultramafic rocks in the Comet Vale area therefore are part of the same sequence that hosts the Grants Patch, Ora Banda and Mt Pleasant gold camps, as well as the Goongarrie and Highway nickel laterite deposits on the southern and western limbs of this anticline and consist of the Missouri Basalt, the Walter Williams Formation and the Siberia Komatiite.

To the east of the property is the northern extension of the prolific Boulder Lefroy Fault that hosts the world-class Superpit mine. Much of the western part of the project area is blanketed by a thin cover of wind-blown sands (1-4 m thick) and a thin underlying layer of lateritic gravel (<1 m thick). This transported regolith covers the majority of the ground that is prospective for parallel deposits to the Sovereign trend so requires geophysical techniques to test for prospectivity.

Most of the Walter Williams Formation has a laterite cover (up to 44m thick) and locally has a jasperoidal silica cap rock. This has preserved the underlying saprolitic part of the weathered profile that is also a potential host for lateritic Ni-Co deposits. The Siberia Komatiite hosts the Longtunnel trend of mines which produced over 7,500oz @ 14.9g/t (ASX release Reed Resources dated 24/11/2006) and has drilling results of 1m @ 23.3g/t (ASX Release Reed Resources dated 31/01/2007) and rock chip samples of 36.4g/t and 1.58% Copper (ASX Release Reed Resources dated 24/11/2006).

Historic, extensive surface workings are present over a strike length of 1.2km with only three drillholes completed in the last 20 years testing for downdip potential. Copper mineralisation is also present in the form of malachite which previously has not been a commodity of interest in this area. To the south of the Longtunnel trend historic sampling and limited drilling has been carried out over the southern portion of the Siberia Komatiite highlighting multiple mineralised trends including; Dredd, Cliffhanger, Rocky and Demolition.

Historic workings are present across the different trends and surface rock chip sampling has consistently returned >5g/t gold and elevated copper over a total of 3.5km of strike across the multiple trends (Reed 24/11/2006). A small scale phase of RC drilling was conducted over a small part of the Rocky trend to test the down dip potential that returned values of 1m @ 27.2g/t and 1m @ 8.59g/t (Reed - 31/01/2008 Quarterly Report) with no further work completed since. The Sovereign trend of gold deposits is made up of multiple quartz veins across 1.3km of strike hosted within the Missouri Basalt.

The deposits have been exposed to minimal drilling over the past 15 years and the veins remain open to the north and south as well as at depth. Mining has occurred on the deposits sporadically for over 100 years with historic production recorded as 245,000t for 185,000oz.