Overview

Dominion’s board and management maintain the view that the Company’s exploration portfolio is the asset most likely to generate significantly increased value for shareholders from a new greenfields mineral discovery. As a result, Dominion has maintained its strong focus on exploration activity.

Dominion has an extensive exploration portfolio including both advanced prospects and opportunities at and around Challenger and longer-term regional projects in Western Australia and South Australia.

The Company’s primary exploration focus is on extending the life of the underground project at Challenger through exploration drilling to fully evaluate the three principal ore shoots, all of which remain open at depth.

In addition, the Company has successfully and cost effectively developed an extensive portfolio of greenfields exploration projects offering significant leverage to quantum increases in shareholder value. Dominion’s strategy is to maintain significant exposure to such projects, but to leverage value by conducting relatively low cost exploration activities (eg, geochemical exploration and shallow drilling to define bedrock targets).

These activities have resulted in the definition of several high quality targets, particularly at Dominion’s South West Yilgarn Project in Western Australia. These will be drill tested by the Company during 2005, either in its own right or through joint ventures with third parties to reduce the level of risk.

In November 2004, Dominion announced an $8 million capital raising to underpin deep drilling of the M1 shoot at Challenger to extend the resource base at depth, as well as follow-up drilling of the M2 and M3 shoots, and exploration of advanced regional targets in the immediate vicinity. Part of the funds raised will also be applied to intensive exploration at the South West Yilgarn Project.

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