BRIEF REPORT

3 days site visited

PT. Sel Teknik Utama Trading

Iron ore property
Solok Regency, West Sumatera
Indonesia
For
Brook Capital Partner

26.05.11

Australia | India | Indonesia | Singapore

The Garden Centre, 3rd Floor, Unit 18, Cilandak Commercial Estate
Jl. Raya Cilandak KKO, Jakarta Selatan 12560, Indonesia

For more information visit www.salvaresources.com

Or call +62 (0) 21 789 0269
 Table of Contents

1.0 Introduction 3
2.0 Work metode 3
3.0 Observation of prospective blocks .3

4.0 Outcrop Sample List 17

5.0 Bore hole plan 17
6.0 Nearest mining activity 17

1.0 Introduction
SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 2
Site visit is the part of due diligence scope work at PT. STUT iron ore property. Carried out at 20 to
23 May 2011 excluded the traveling time by Rudi Mashuri and Julianus Ginting (Salvas Senior
Geologist and Geologist). The aims to find actual condition of mine, outcrop, take iron ore sample
verification, pegging the drill hole point, check to nearby iron ore mine, find the issues in the field
etc.

2.0 Work Method

Base on the previous exploration by LAPI ITB on 2006. They divided the prospective area into four
blocks as Ngalau block, Lasih Block, Tapis Block and Bukit Gadang block. They had taken 10 iron ore
samples from all that blocks.

We sorted 5 samples from the previous sample to be check and resample for verification, outcrop
observation, general look on geological fact, visiting the nearby iron ore mine and identified some
other issues.

3.0 Observation of Prospective Blocks

We have visited the four prospective block and found that Block Ngalau is not ready for the next
stage development, Block Lasih and Tapis are ready to go to next development. Bukit Gadang block
is occupied by PT. Global Mineral Sejahtera so should be consider as not prospective block because
outside of PT. STUT tenement. See the map of block prospective below:

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 3
 Map 1. Tracking Map Location

3.1 Observation of Ngalau block

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 4
Ngalau block is not yet prepared as well as Lasih Block and Tapis block. The available road is only
village road. No mine road already made through this block. The block still can be access by car, but
entering to prospective block there is only footpath available. We took one sample as below:

Sample name: JG-NG-01, Description: Magnetite vein, the direction of N265 degrees/65degrees,
limestone altered with brownish black - yellowish, porous FeOx with thickness 35 cm (the
previous sample name is SN-22)

Land issues: This area at December 2006 have big accident as landslide that have taken 14 villager
lives. The local people still afraid if mining start it will trigger another landslide accident.

The land is not acquired yet by PT. STUT.

Picture 1. Iron Ore outcrop, sample JG-NG-01

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 5
 Picture 2. Sample JG-NG-01

Picture 3. Landslide location on December 2006, In the northern side of Ngalau

3.2 Observation of Lasih block

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 6
Lasih Block is already prepared by PT. STUT for initial mining. They have made one test pit and put
ROM at the small stockpile. Mine road already made through this block continuous from main
public road to the mine road.

According to Mr. Ricky, most of land in this area already acquired by PT. STUT

We taken two samples at this block first sample is:

Sample name: JG-LS-01, Description; Magnetite silicified with N40 degrees/55 degrees, gray
blackish - brown black, there is a 3cm quartz vein, white, crystalline. Silicified with thickness 2.5m
contain magnetite, hematite and FeOx filling smooth and mass fragment limestone base (trap
rock?) and malachite fill fine cracks in silicified , fractured bedding planes in the direction of the
field, estimated to result in post-mineralization shear structure (new sample)

Picture 4. Outcrop JG-LS-01, located at the top of old test pit

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 7
 Picture 5. Sample JG-LS-01

The second sample is:

Sample name: RM-LS-01, Description: Magnetite vein, no direction, blackish brown - dark
yellowish, containing magnetite, limonite, malachite spoted, exposed by excavator. Above it's a
granite rock is gray and white - white yellowish (previous sample name is NL-27)

Picture 6. Out crop RM-LS-01

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 8
 Picture 7. Sample RM-LS-01

Picture 8. Old test pit at Lasih block

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 9
 Picture 9. Old stock pile at Lasih block

Picture 10. Mine road at at Lasih block need to be upgrade

3.3 Observation of Tapis block

Tapis Block located at southern of Lasih block. The mine road also crossing this block until to the
south Tapis.

There also mining Activity at this block operated by PT. Bintang Fajar. According to Mr. Ricky they
only occupied 7 hectare of size area, starting 3 month ago, operating two excavator. The mining
method just trial and error, digging soil (overburden) to expose the ore body, they just found the ore
body. As see at picture below:

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 10
 Picture 11. PT. Bintang Fajar Mine activity at Tapis block (7 hectares)

Some of land in this block already acquired by PT. STUT

We taken two samples at this area, first sample at north Tapis Block:

Sample name: JG-TP-01,Description: Magnetite silicified with N245 degree/50degree, gray blackish
- brown blackish, locally yellowish, high FeOx, filled by calcite veins with the direction N174
degrees/34 degrees. Vein calcite containing magnetite and hematite, hard, white, crystalline with
thickness 2.5 meters (previous sample name is ET-08)

Picture 11. Outcrop JG-TP-01

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 11
 Picture12. Sample JG-TP-01

The second sample that taken at south Tapis is:

Sample name: RM-TP-01, Description: Magnetite vein with N35 degrees/60degrees, brownish black
- black yellowish, high FeOx, 1m thickness, containing limonite, magnetite, minor fracture, bedding
planes in the direction of the field thought to be limestone alteration (new sample)

Picture13 . Outcrop RM-TP-01

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 12
 Picture14. Sample RM-TP-01

Picture 15. Mine road at at Tapis block need to be upgrade

Land issues:

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 13
We found some land issues at North Tapis. The land owner complaint that his coffee plantation and
their rice field become damaged because runoff water from PT. STUT mine road coming to their
land with the clay and rock fragment, so now difficult for them to planting because must ride off the
clay and rock fragment first. This runoff water also makes the gullies and landslide along the way
down to the rivers

They ask PT. STUT to fix this problem first before go to the next stage of mine, but in principal they
agree if PT. STUT want to mine their land.

Picture 15. Gully and Landslide at southern Tapis

3.4 Observation of Bukit Gadang block

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 14
In the field we got the information from the local people that bukit gadang already occupied by PT.
Global Mineral Sejahtera. But not mine yet until now because they have some land issues there.
PT. Global Mineral Sejahtera difficult to acquired this area from land owner.

Also in The ESDM map we can see that area is registered for PT. Global Mineral Sejahtera as shown
at map below:

Map 2. ESDM government map mineral tenement

Then the Bukit Gadang block should be consider to deleted from prospective block area of PT.
STUT.

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 15
 Picture 16. Bukit Gadang that occupied by PT. Global Mineral Sejahtera

Picture 17. Ore body at Bukit Gadang exposed manually by man

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 16
4.0 List of Sample

All samples above dispatched to PT. Intertek at padang for sample preparation, then send to
intertek Jakarta for iron ore test all element plus LOI.

5.0 Bore hole Plan

From previous exploration they already made 8 drill plan at the four block. Base on the actual
condition in field we can only pegging

1 One drill hole plan at Ngalau block, DHN-H01, but seem difficult to be done
because no access road to take drill machine at the drill point
2 Two drill hole plan at Lasih Block, DHL-I01 and DHL-I02, located near mine road
3 Two drill hole plan at Tapis Block, DHT-01 and DHT-02, Need new access road to
reach this two location. For DHT-03 is failed to peg because located at PT. Bintang
Fajar.
4 No pegging at Bukit Gadang Block because occupied by PT. Global Mineral
Sejahtera

6.0 Nearest mining Activity

We visited the PT. Multi Mineral Magnetic around 5 km to the north from PT. STUT tenement.
Unfortunately we only allowed to take the picture from mine office, cannot go entering mine
location. They have mine field at the top, then crushing facilities down near the mine field, stock pile
at the foot hill near the mine office. The picture as below:

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 17
 Picture 18. PT. Multi Mineral Magnetic mine field at the top

Picture 19. Crusher facilities of PT. Multi Mineral Magnetic

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 18
 Picture20.Stock pile of PT. Multi Mineral Magnetic near the truck parking area

SALVA RESOURCES
COMMERCIAL IN CONFIDENCE
This Document contains confidential and commercially sensitive business information of Salva Resources Pty Ltd. This Document may not be reproduced in part or in whole without
permission of Salva Resources Pty Ltd. This Document may not be shown to any Third Party in part or in whole without permission of Salva Resources Pty Ltd.

Page 19