Project Overview

Updated April 2009

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

Merceditas Project Location

Merceditas Overview

Paula Prospect Drill Results and Mineralised Trends

Paula Prospect Pupy Zone Cross Section

Lucy Prospect

Lucy Prospect Cross Section

Merceditas Project Chile Overview

In January 2008 Genesis Minerals Limited reached agreement with Andes Pacific Development S.A., a private Chilean company, to acquire a 100% interest in the 18km² Merceditas copper-gold project in northern Chile. The Merceditas Project is located 80km north of the city of Copiapó, approximately 1,000km north of Santiago, the capital of Chile. The project is 60km from the Pacific Ocean, and 100km and 70km from the ports of Caldera and Chañaral respectively.

The Project is located in northern Chile's Iron-Oxide-Copper-Gold ("IOCG") belt which is one of the most prospective IOCG provinces in the world and hosts numerous deposits including Candelaria (470Mt @ 0.95% copper) and Manto Verde (350Mt @ 0.75% copper). The Project is located at low altitude in the Atacama Desert and is easily accessible by road. It is located in an area that is serviced by very good infrastructure.

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.

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.

Exploration 2008

To date Genesis has completed 67 RC holes at the Merceditas Project in two phases, for 5,320 metres, between May and October 2008. This drilling has comprised mostly wide spaced drilling at the Principal Zone SE and the Pupy Zone at the Paula Prospect and limited drilling at the Lucy Prospect. The average hole depth was 80 metres. The mineralised zones defined to date remain open along strike and at depth.

Paula Prospect

Drilling at the Pupy Zone at the Paula Prospect has intersected significant copper mineralisation over 400 metres of strike. Wide zones of copper mineralisation were returned from surface in adjacent holes MERC041 (78m @ 0.78 % Cu from 2 metres) and MERC042 (80m @ 0.66 % Cu from 0 metres). MERC045 drilled 150m to the west returned 40m @ 0.57 % Cu from 34 metres. Mineralisation at Pupy remains completely open to the north east and at depth.

Lucy Prospect

MERC063 (26m @ 0.66% Cu from 28 metres and 40m @ 0.75% Cu from 60 metres) and MERC064 (56m @ 0.63 % Cu from 44 metres) returned significant copper mineralisation over a zone 100 metres wide and confirmed significant mineralisation previously reported from MERC035. Oxide mineralisation is open to the north and northeast, with no drilling having been completed under transported gravel cover. MERC062 returned 38m @ 0.40 % Cu and 0.50g/t gold from 4 metres from the western side of the Lucy Prospect.

Based on the work completed by Genesis an Inferred Resource has been estimated for the Paula and Lucy Prospects of 6.4Mt @ 0.65% copper for 41,300 tonnes of contained copper. The Lucy Prospect contains 3.9Mt @ 0.16g/t gold for 19,700 ounces of gold.

The resource remains open in a number of areas and considerable potential exists to substantially increase the resource defined at the project through further exploration.

Resource Statement and Parameters

An Inferred Mineral Resource estimate for the copper-gold (Cu-Au) deposits of the Merceditas Project area was completed by Runge Limited (Runge). The Merceditas Project is located in the Atacama Desert region of Northern Chile in an area of mild relief with altitudes ranging from 1,400m to 1,600m. The project area forms part of Chile's IOCG belt which is host to a number of large IOCG deposits that are currently being mined. The table below shows the Inferred Mineral Resource Estimate at various cut off grades.

Merceditas December 2008 Inferred Mineral Resource Estimate
0.2% Cu Cutoff
Deposit	Tonnes (mt)	Cu%	Cu Tonnes	Au g/t	Au Ounces
Paula	19.1	0.36	69,300
Lucy	36.4	0.32	118,200	0.14	163,800
Total	55.6	0.34	187,400
0.3% Cu Cutoff
Deposit	Tonnes (mt)	Cu%	Cu Tonnes	Au g/t	Au Ounces
Paula	10.8	0.44	47,800
Lucy	15.6	0.43	67,700	0.16	81,300
Total	26.4	0.44	115,600
0.4% Cu Cutoff
Deposit	Tonnes (mt)	Cu%	Cu Tonnes	Au g/t	Au Ounces
Paula	5.2	0.55	28,600
Lucy	6.8	0.55	37,500	0.15	32,700
Total	12	0.55	66,200
0.5% Cu Cutoff
Deposit	Tonnes (mt)	Cu%	Cu Tonnes	Au g/t	Au Ounces
Paula	2.5	0.68	16,800
Lucy	3.9	0.63	24,500	0.16	19,700
Total	6.4	0.65	41,300

The resource estimate was completed using the following parameters:

The Lucy estimate covers a 1,100m lateral extent from 387,500E to 388,600E and the vertical extent of the resource is 240m, from surface (1,430m) to 1,185m. The Paula estimate covers a 1,650m lateral extent from 386,850E to 386,450E and the maximum vertical extent is 260m from surface (varies from 1,630m to 1,500m) to 1,360m.
Drill holes used in the resource estimate included 93 RC holes for a total of 4,507m within the resource wireframes.
Holes in the resource were drilled at section spacings roughly 100m east-west and on average 40m north-south.
RC holes were sampled at 2 metre intervals. Two 12.5% split samples were taken off a 3 tier rig mounted splitter, while the bulk reject was collected in plastic retention bags to enable further test work to be conducted.
Sample preparation and assaying was carried out by ALS Laboratories in La Serena, Chile. Assaying of Cu was carried out using a 4 acid digest and AAS analysis. Assaying of Au was carried out using a 30g charge fire assay and AAS analysis.
A blank sample was submitted for each drill hole where material was sourced from beach sand at Chanaral. Field duplicates were produced every 20th sample. A series of graphs were produced by Genesis showing the accuracy and repeatability of the standards and blanks. A scatter plot of duplicate data was also produced by Genesis. These have been reviewed by Runge and no significant issues were found.
All Genesis holes were surveyed after completion of drilling by a licensed surveyor Nelson Guita based in Copiapo, using a theodolite. A total of 18 Genesis holes were down hole surveyed. These were carried out by Comprobe Ltda using a gyroscope with readings taken every 10m. The remaining holes did not remain open after drilling was completed.
A detailed topographic survey of the Paula Prospect was carried out by Nelson Guita during the recent drilling program using a theodolite. Collar positions have been used to create a topographic surface for the Lucy Prospect.
Wireframes were constructed using cross sectional interpretations based on mineralised envelopes constructed at a nominal 0.10% mineralisation. Samples within the wireframes were composited to even 2.0m intervals.
Statistical analysis indicated no high grade cuts were required.
The block dimensions used in both models were 80m NS by 80m EW by 10m vertical with sub-cells of 40m by 40m by 5m for Lucy and 20m by 20m by 2.5m for Paula.
OK grade interpolation used an oriented 'ellipsoid' search for Cu and Au. Au was not estimated in the Paula Prospect due to the lack of samples. Two passes were used to estimate the model with 98% of the model being estimated in the first pass.
A bulk density value of 2.4t/m³ supplied by Genesis was assigned to the entire resource.
Drilling has defined consistent zones of mineralisation at the prospects indicating reasonable continuity of geology. However the drilling is too widely spaced to confirm continuity of the Cu grade. This, coupled with a lack of bulk density data has resulted in the estimate being classified as Inferred Mineral Resource. The overall magnitude and grade of the mineralisation suggests that the project has reasonable prospects for eventual economic extraction.

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.

Western Australia

Mundong Well Project Geology

Mundong Well (100%)

No work has been completed on the two exploration licences which have recently been granted at the Mundong Well Project which is 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.