AGM Statement

Chairman's statement at 2005 AGM

I would like to bring you up-to-date with the company's activities over the past
few months and with our plans for the future. Since raising £464,000 in April we
have completed the first hole of a planned three to four hole programme and we
are more than half way down the second hole.

Successful first hole

We are extremely encouraged by the results from that first hole for two reasons.
Firstly, AMC 15 intersected exceptionally high grade, polymetallic massive
sulphides, at two separate stratigraphic horizons. In the Central horizon there
was a 20cm intersection and in the Engine zone horizon 2.5 metres at a grade of
40 per cent combined metals.

Secondly, AMC 15 intersected an intensely altered volcanic succession,
containing the three projected, mineralized stratigraphic horizons. These
results confirm our geological model, providing considerable encouragement that
our identified target, the northern margin of the volcanic complex, has
considerable potential at three stratigraphic horizons: the Carreg Y Doll (above
the Northern Copper Zone), the Central zone and the Engine zone.

AMC16 - second hole encouraging

Our second hole, AMC 16, 180 metres to the west of AMC 15, is currently at a
depth of 480 metres. To date it has passed through the same, intensely altered
volcanic succession, intersecting mineralization at the Carreg Y Doll (Northern
Copper) and Central zone horizons as predicted.  Core is just now being sent for
assay. The hole has not yet reached the depth where the Engine zone is expected.
Drilling in AMC16 began well but difficulties with broken ground have slowed the
rate of progress over the past fortnight. We believe we are now past this
difficult area.

Northern Copper zone

Both AMC15 and AMC16 have passed through the upper part of the siliceous
structure referred to by the old miners as the Carreg Y Doll which, at greater
depths, hosts the Northern Copper zone. Both holes have provided new information
on the distribution of mineralization within this horizon, suggesting potential
for a relatively narrow band of mineralization lying above the Northern Copper
zone extending east-west following the northern margin of the volcanic complex.
Old hole H30 returned 3.48% copper, 0.22% lead, 0.55% zinc, 8 g/t silver and
1.48 g/t gold from within this zone.  We are using the information gained from
these holes to increase our understanding of the Carreg Y Doll/Northern Copper
Zone, but have not decided whether to drill this zone as a specific target this
year.

Project plan

We have carried out work on a number of specific areas on the project plan and
financial evaluation of Parys Mountain but still have some way to go towards
updated estimates for the project. Nor have we pursued actively the possibility
of mining a small sample of gold at Parys Mountain, preferring to concentrate on
the drilling.

Metal Prices

As noted in the Annual Report, metal prices remain high, with copper in
particular posting significant gains this year in sterling terms. Although zinc
has not risen as much, the outlook for zinc demand and prices over the next few
years is extremely robust and positive for the company. Zinc and copper would
provide three-quarters of the company's revenues, with the balance coming from
lead, silver and gold.

Contacts J F Kearney + (1) 416 362 6686

       Ian Cuthbertson + (44) 1248 361333