• Key strategic investment in a mature offshore oil and gas opportunity in politically stable producing offshore oil and gas areas close to facilities, ready to drill.
  
  
• Lambouka contains three targets in formations that are highly prospective and importantly, regionally these target reservoirs are traditionally hydrocarbon bearing.
  
  
• Approximately US $20 million dry well cost.
  
  
• Lambouka has not been previously recognized due to lack of integrated seismic data across the Italy – Tunisia international Border and may be one of the largest untested structures in the Mediterranean Sea.
  
  
• 3D seismic acquisition over Lambouka commenced in March 2010 and completed in April 2010.
  
  
• A contract with a recognized offshore deep water drilling contractor has been signed and a rig has been selected for a planned spud date of 15 June 2010.

Parmegiana Iron Ore Project, Brazil (100%)

Carnavale has entered into an agreement with Brazilian major Companhia Vale Do Rio Doce (Vale) with regard to the Company’s Parmegiana Iron Ore project in Brazil. Vale has been granted exclusive exploration rights over the Parmegiana property for a period of up to 44 months.

During the quarter, Vale has continued assessing the results of the ground magnetic survey and is continuing to compile all the drillhole information together with the analytical results in order to plan the 2010 Calendar year drilling campaign.