The Company's objective is the exploration and development of gold on the Eldorado Project. The Eldorado Project is located in the Eastern Goldfields of Western Australia, 55 kilometres northeast of Kalgoorlie. It lies within typical Archaean greenstone terrain of the Kalgoorlie region, comprising a sequence of mafic volcanics and sediments. This rock sequence at Eldorado is interpreted by the Company as being cut by several north-northwest trending and west dipping shear zones.

Eldorado represents an advanced exploration target for classic Kalgoorlie-style gold deposits.

In addition to Eldorado, Colonial Resources Limited continues to actively search for new projects, both within Australia and offshore.

Acquisition is focused on drill-ready exploration projects through to advanced projects with existing resources and upside potential. Although the preference is for the major metals or bulks other commodities are being considered. There is no geographical constraint other than areas of unacceptable political risk. All deal structures will be considered, from joint venture farm-in through to direct project equity or corporate acquisition.

A number of interesting opportunities have been presented and are currently under review. Asset quality and valuations continue to improve as a result of continuing difficult conditions in equity markets. With this in mind, the Company is also evaluating the support that may be available to finance a potential acquisition.