Forsayth Gold Project

The Canadian (ML 3326), Goldsmiths (ML3327) and Big Reef (ML 3278, 3279, 3280) Mining Leases are located in the Forsayth area of northern Queensland, approximately 10-15 km southwest of Forsayth and 300km southwest of Cairns.

The three Big Reef MLs are located along and within a major regional shear zone as is seen in the location figure above.  The Canadian and Goldsmith MLs are also located within this structure to the south west in a major dilational zone, a zone of increased fluid flow and potential site of mineralisation.

The spacing of the five leases along this shear zone allows InterMet to target multiple areas and varied mineralisation styles along what appears to be a highly prospective regional shear zone.

Historically these mines were all very rich:

• Canadian  –  3167.6 ozs of gold produced from 4469 tonnes of ore (just under 1 oz/t Au)
• Goldsmiths – 10,837 ozs of gold produced from 9200 tonnes of ore (>1oz/t Au)
• Big Reef Leases – total production of 26,919.2 oz of gold from 25,470 tonnes of ore (a grade >1 oz per tonne).

Shallow drilling programs (deepest hole to 11m) have been undertaken by the Lease holders of all five mining leases and the best results are outlined below:

• Canadian area – 1m @ 14 g/t Au, 2 m @ 11.4 g/t Au, 3 m @ 7.8 g/t Au
• Goldsmiths area – 1.3m @ 16.7 g/t Au, 3.3 m @ 7.18 g/t Au, 1.3 m @ 19.65 g/t Au, 5.2 m @ 7.6 g/t
• Big Reef area – 3 m @ 25.93 g/t Au including 2 m @ 38.4 g/t Au

Canadian

The Canadian ML (ML 3326) is 32 hectares in size and containing several small pits and audits.  Gold mineralisation is hosted in quartz veins with abundant sulphides.  The main dump contains minor copper (malachite) mineralisation, but no samples were assayed for copper.

A total of 12 samples were collected and gold values ranged from 0.3 g/t Au to 29.0 g/t Au (copper was not assayed for).

InterMet plans an initial program of trenching to assess the gold mineralisation with subsequent drilling undertaken in the second quarter 2008.

Goldsmiths

The Goldsmiths Mining Lease (ML 3327) is a 50 hectare Mining Lease containing numerous small, shallow pits.

A total of 18 samples were collected with gold values ranging from 0.7 g/t Au to 735.6 g/t Au.  Every sample collected contained anomalous to bonanza-grade gold mineralisation and confirms the potential outlined by earlier drilling.

The historical workings do not occur to any great depth and InterMet will be undertaking a program of trenching early in 2008 to fully assess the nature of the gold.

Drilling will be undertaken in the second quarter 2008.

Big Reef

The Big Reef workings are one of the largest groups of workings in the Forsayth area. The main Big Reef mines were worked between 1878-1893, with total production of 26,919 oz of gold from 25,470 tonnes of ore (a grade >1 oz per tonne). Gold deposits in the Forsayth region occur mainly in mineralised quartz veins hosted within steeply dipping fissures or shear zones.

The majority of ore removed during early mining was taken from the oxidised zone which consists of iron-stained quartz and gossan with limonite (hydrous iron oxide), hematite and cerussite (lead carbonate).

Below the water table and into the primary mineralised zone, gold is associated with sulphide mineralisation. This primary ore was the ore the early miners struggled to treat and InterMet is optimistic that this zone remains relatively untouched

Previous drilling in the Big Reef area was undertaken in 2001 using a small RC rig and a maximum depth of 11m was obtained. The drilling during ths program returned the following drillhole results:

InterMet is currently working on an exploration drilling program for the Big Reef area with the work planned for the third quarter of 2008.