Development of Pan Australian"s Phu Kham copper-gold project in Laos is ahead of the scheduled mid-2008 start-up for first concentrate production, and within the US$241 million capital budget.

Positive results from ongoing infill and resource extension drilling within the 'north mine area' of the deposit indicate a likely increase in the ore reserve at Phu Kham.

In the north mine area the open pit design has a maximum depth of 120 metres below surface. The latest infill and resource extension drilling has intersected broad zones of mineralization to depths in excess of 250 metres below surface and indicates potential for the pit to be extended deeper in that part of the deposit, subject to revised mineral resource and ore reserve estimates.

Concentrate from the Phu Kham project will be transported by road to a port facility near Rayong in Thailand for export to custom smelters. The company has not yet entered into concentrate off-take agreements with customers.

Encouraging exploration results have also been received from the Ban Houaxyai gold deposit as well as several other Pan Australian copper and gold prospects in Laos, and from drilling at the Puthep copper project in Thailand.