Paniai Gold Project

Proposed Alluvial Gold Mining Operations and Exciting Regional Exploration Possibilities
in Papua Province, Indonesia

ECR holds 100 million shares in Paniai Gold Ltd, a private Australian company founded as a vehicle for the Derewo River gold project in Papua Province, Indonesia. ECR’s shareholding is equivalent to approximately 26% of Paniai’s issued share capital.

In July 2011, Paniai sold its interest in the Derewo River project to West Wits Mining Ltd (ASX: WWI) for a package of ordinary shares, performance shares and options. ECR holds approximately 11.1M West Wits ordinary shares following a distribution by Paniai, which retains solely the performance shares and options received from West Wits.

The Derewo River project consists of more than 128,000 hectares of mining and exploration tenements. The project was established as a joint venture between Paniai and a local party. Paniai’s 50% interest has been assumed by West Wits, which can increase its interest in exploration activities to 80%.

Large amounts of gold have been extracted at Derewo River in recent years by local miners using only primitive techniques. The objectives of the Derewo River project are to establish a more sophisticated alluvial gold mining operation and to explore a wider area for alluvial and hardrock deposits. Exploration targets include large scale alluvial gold, porphyry gold-copper and bonanza grade quartz sulphide gold veins.

Indonesia’s Papua Province is arguably one of the world’s most prospective areas for mineral exploration, and the Derewo River project is located approximately 100km from the Grasberg copper-gold mine operated by Freeport McMoRan Copper & Gold.

Derewo River

Derewo River Exploration Area

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