Project Overview

Updated February 2008

Genesis Minerals Limited is an Australian resources company which was incorporated on the 16 April 2007 to acquire prospective base metal, nickel, gold and uranium projects.

The Company's objective is to rapidly become a mid-tier resource company. It aims to achieve this by discovering and/or acquiring sizeable, economic mineral deposits and bringing them into production either in Australia or overseas.

Chile - South America

Genesis has secured an option to acquire a 100% interest in the Merceditas copper-gold project in northern Chile.

The Merceditas Project comprises two main prospects, Paula and Lucy. Significant copper oxide mineralisation has been defined at surface over a 5km by 3km area and is exposed in a number of trenches. Only limited drilling has been completed at the Paula and Lucy Prospects to test the oxide mineralisation, which is known to extend to 80 to 110m below surface in both areas. Previous exploration at the Project was terminated in 1999 in a period of low-metal prices and no further work has been completed since that time.

Previous resource estimates have been completed but are not considered JORC compliant. Based on historic information the Company has determined an initial exploration target estimate for the Paula and Lucy prospects of 200 million tonnes of ore at grades of approximately 0.5% copper and 0.25g/t gold. Importantly potential exists to delineate 30 to 40 million tonnes of medium to high grade copper oxide ore (0.7% to 1% copper + gold credits) within the prospects.

The estimates presented here are conceptual targets that may result from the completion of a JORC-compliant resource calculation. It should not be understood as indicating the existence of resources in the sense implied by the JORC Code as a JORC-compliant resource is yet to be calculated. There has been insufficient or unverified exploration data to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Proposed Development Program

Genesis will immediately commence exploration activities at the Merceditas Project. The initial focus will be on testing the copper oxide potential at both the Paula and Lucy prospects.

The initial exploration program will include a trench re-sampling program, a significant drilling program to comprehensively test the copper oxide mineralisation, geophysical data processing and initial metallurgical testing of the copper oxide mineralisation. It is anticipated this work will facilitate the calculation of a JORC compliant resource by the second half of 2008.

Genesis is committed to establishing a significant mining operation at the project. There is considerable potential to delineate a copper oxide resource that could be amenable to extraction by conventional SX-EW processing and exploited as a standalone operation. The Company is targeting the completion of a bankable feasibility study within 36 months.

Terms of Agreement

Genesis has executed an Option agreement with Andes Pacific Development S.A. ("Andes Pacific") giving the Company the exclusive right to earn 100% of the Merceditas Project by completing a feasibility study on all or part of the Project and by making staged payments totalling US$6,000,000 over a 36 month period. Andes Pacific will be paid a further US$10 per tonne of contained copper metal within Measured and Indicated JORC (2004) defined Mineral Resources as defined in the feasibility study.

Genesis paid Andes Pacific US$250,000 on executing the Option agreement. A further US$250,000 is to be paid to Andes Pacific 35 days from signing, providing due diligence is completed to the Company's satisfaction. Further payments of US$1,500,000, US$2,000,000 and US$2,000,000 are due within 12, 24 and 36 months of the execution of the Option agreement respectively.

Genesis has committed to spend a minimum of $US750,000 within 12 months of executing the agreement, subject to satisfactory completion of due diligence.

If Genesis elects to proceed to develop the Project based on the feasibility study Genesis will pay Andes a further US$2,000,000.

Andes Pacific will be entitled to a 2% net smelter royalty on all production from the project.

Additionally, 500,000 options exercisable at 20 cents will be issued as part of the acquisition cost.

Merceditas Project Background

The Merceditas Project, comprising 11 exploitation concessions, is located about 85 km north of the city of Copiapó and about 20 km west of the town of Inca de Oro. It lies about 20 km to the west of the paved highway that joins Copiapó and Diego de Almagro and is situated at low altitude, with altitudes ranging between 1,300 and 1,600 m. The north railway line and the SIN (National Interconnected System) electric lines traverse the adjacent area. The project is 60 km from the Pacific Ocean, and 100km and 70km from the ports of Caldera and Chañaral respectively.

Previously Minera Mantos Blancos carried out exploration (geological mapping, trenching, drilling) at the Lucy Prospect between 1992 and 1993. The entire Project area was explored from 1998 to 1999 by Minera Outokumpu Chile as part of its regional exploration program in Chile. Minera Outokumpu Chile carried out geological mapping, trenching, geochemical sampling, geophysical magnetic surveys and wide spaced drilling at both the Paula and Lucy Prospects. Outokumpu terminated its exploration in Chile in late 1999. Andes Pacific acquired the Project shortly thereafter.

Andes Pacific compiled previous exploration data and carried out a detailed project review, but no further exploration has been completed since 1999.

Paula Prospect

Mineralisation at the Paula Prospect is interpreted to occur in six mineralised bodies that are hosted by amphibole rich andesites with variably altered zones of biotite-chlorite, specularite hematite, magnetite, albite and epidote. Mineralisation occurs in the form of veins, veinlets, stockworks, breccias and disseminations. It displays widths of 20m to more than 200m and lengths between 400m and 2,000m. Copper oxide mineralisation occurs in the form of chrysocolla and malachite, with the oxidised zone occurring to depths of 90m to 100m below surface. Primary copper mineralisation is associated with chalcopyrite.

The area has undergone geological, geophysical, and geochemical studies, with 22 trenches excavated for 6,180 m and 14 holes drilled for a total of 2,430 m.

Significant trench results from the Paula Prospect include:

• 102m @ 1.32% copper
• 81m @ 1.35%copper
• 21m @ 2.52% copper
• 39m @ 0.84% copper and 0.82g/t gold
• 38m @ 1.13% copper
• 15m @ 1.34% copper and 0.87 g/t gold
• 45m @ 0.7% copper
• 111m @ 0.82% copper
• 18m @ 1.22% copper

Only 6 of the 14 previous holes were drilled to test the oxide portion of the prospect. The other 8 holes were drilled to test primary mineralisation targets. Significant results include:

RC-19	60m @ 0.59% copper from 10 metres - oxide
RC-25	30m @ 0.60% copper from 50 metres - oxide
RC-3	10m @ 0.76% copper from 36 metres - oxide
RC-2	12m @ 1.00% copper from 0 metres - oxide
RC-15	6m @ 1.59% copper from 12 metres - oxide
RC-4	76m @ 0.44% copper from 130 metres - primary

Lucy

The Lucy prospect is a large copper-gold porphyry type system. Mineralisation is oriented ENE and forms an oval shaped hydrothermal alteration zone with a leached cap that covers a surface area of 2 x 1 km. The hydrothermal system is associated with two porphyritic stocks surrounded by andesitic volcanic rocks.

Minera Mantos Blancos (1992-1993) carried out geological surveys, trenching and drilled twenty four holes for approximately 3,850m. Minera Outokumpu Chile carried out detailed geological mapping and excavated twenty trenches for a total of 4,420m with approximately 1,500 samples collected. Nine RC holes were drilled for a total of 2,612m.

Better results from drilling at the Lucy Prospect include:

SRP-16	104m @ 0.36% Cu and 0.43g/t Au from 6 metres
RC-16	44m @ 0.38% Cu and 0.25g/t Au from 52 metres
RC-7	92m @ 0.37% Cu and 0.22 g/t Au from 26 metres
SRP-12 A	86m @ 0.54% Cu from 92 metres
SRP-17	96m @ 0.4% Cu from 20 metres
SHP-4	62m @ 0.37% Cu and 0.32g/t Au from 0 metres

Western Australia

Trainor Project JV

The Trainor Project comprises four granted tenements covering 759km² and is located about 400km north east of Wiluna. Genesis Minerals has the right to earn a 70% interest in the tenements through expenditure of $2.5 million within 4 years of commencement of the farm-in agreement.

The Project covers part of the under explored Proterozoic Oldham Inlier a basement high within the north western Officer Basin. The combination of strong, widespread alteration (barite-hematite-silica), carbonaceous siltstones and shales in the Quadrio Formation, regional scale structures and anomalous gold, zinc, lead, barium, silver geochemistry returned from previous sampling indicates the potential for the formation of deposits containing gold, copper, uranium, lead, or zinc. The Project has potential to host both stratiform sediment hosted zinc-lead-copper deposits and intrusion related gold mineralisation related to the anomalous gravity lows covered by the Project.

In the southern half of the Project a geochemical corridor defined from widespaced surface sampling striking approximately north west, similar to stratigraphy, is elevated in copper, nickel and zinc. This anomalous geochemical corridor contains a gossan outcrop which has returned anomalous values in copper and nickel. The southern half of the Project is prospective for magmatic nickel-copper mineralisation.

Scamp Rock (100%)

The Scamp Rock Project (178km²) comprises one tenement and is located about 140km south south west of Kalgoorlie and situated in the southern half of the Yilgarn Craton. The tenement covers a number of uranium channel radiometric anomalies which trend in a north south orientation coincident with the Lake Johnston drainage channel over 10km of strike. The Scamp Rock Project is prospective for surficial and buried palaeochannel uranium mineralisation. The geological setting of the Scamp Rock Project acquired by Genesis Minerals appears to be similar to the uranium deposits in the northern Yilgarn at Yeelirrie and Lake Way-Centipede near Wiluna. These uranium deposits are near surface uranium concentrations (usually as the mineral carnotite) in calcrete, silts and clays in valley-fill sediments within Tertiary drainage channels and in salt lake sediments.

Mundong Well (100%)

The Mundong Well Project comprises two Exploration Licence applications (88km²) situated 200km south east of Exmouth, in the Ashburton Region of Western Australia. The Project is located in the northern half of the Gascoyne Complex and is prospective for hydrothermal uranium mineralisation associated with a north west trending structural corridor and coincident uranium channel radiometric anomaly. The tenements cover approximately 8km of strike of the prospective zone. Potential also exists for structurally controlled lead-copper mineralisation.

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Copyright © 2008 Genesis Minerals Limited

Projects

• Chile
• Western Australia