gold

In March 2007, Dwyka signed a legally binding memorandum of understanding ('MoU') with South African-listed Swazi Gold Ventures (Pty) Ltd, thereby securing the rights to a 90% interest in Swaziland Gold (Pty) Ltd ('SwaziGold'), which in turn owns the Swazigold Project in Swaziland, Africa.

The project is a large (435 square kilometre) gold exploration play in the highly prospective Archaean Barberton Greenstone Belt in Swaziland, historically a producer of 11.5 million ounces of gold.

Greenstone belts of Archaean age are known to host goldfields in most of the ancient cratonic blocks that form the nucleus of the continents. When the ancient lavas extruded onto the earliest formed continental crust, major gold deposits were formed. This is the case not only in southern Africa but also in Canada and Australia, where the giant Kalgoorlie goldfield is particularly renowned. Such belts are also prospective for nickel.

In the Barberton Greenstone Belt, extensive, shallow, historic workings, plus a lack of modern exploration, have presented Dwyka with an ideal opportunity. Previous owners drilled some 13,500 metres of the Project area, providing the Company with a drill database that includes numerous gold intersections. These have allowed Dwyka to establish immediate targets for both infill drilling and the development of extensions to established zones of mineralization. In this environment, it is believed that Dwyka's gold exploration activities will accelerate.

From an initial review of the geology, the Company believes the Project has the potential for proving more than 2 million ounces of high-grade gold mineralization. Already, numerous targets, ranging from advanced drilling projects to promising geochemical anomalies, have been identified along a 40-kilometre strike length.

Advantages of the Project include the following.

• Substantial geological database already in existence.
• Some 13,600 metres of drill data (valued at more than US$2 million) available.
• Good field access and local infrastructure.
• Local management/geological/technical team already in place.
• Located in the Rand Common Monetary Area, just 3 hours' drive from Johannesburg.

Under the terms of the MoU, Dwyka will pay $US200,000 plus shares to the value of $1.5 million to earn a 50% interest in the Project. To earn 70%, the Company must commit $750,000 to the project by June 2008 and pay a further $200,000 plus another $1 million worth of shares. To acquire an 85% or 90% stake, Dwyka needs to commit more funds, issue additional shares and reach bankable feasibility stage.

Please go to announcements for the most up-to-date information on Dwyka's gold operation.