I refer to my appointment as Administrator of the company on 29 August 2008, and my previous correspondence to creditors.

By way of brief update I advise that on 3 September 2008, I decided to place the operations on care and maintenance for the purpose of preserving the operations whilst I engaged in the process of attempting to sell the operations.

The first meeting of creditors was held, on 9 September 2008 at which Committees of Creditors were appointed for Monto Minerals Ltd and Monto Resources Pty Ltd.

Generally, under the Corporations Act, a second meeting of creditors would be required to be held by 3 October 2008 to decide the future of the company. As foreshadowed at the first meeting of creditors, on 26 September 2008, we made an application to the Supreme Court of Queensland for an extension of the convening period for that meeting. On Friday, 26 September 2008 the application to the Court for the extension to the convening period for the second meeting of creditors of up to fifty five (55) days was made and the application was subsequently successful.

As a result, the second meeting of creditors will now be required to be held on or before the 19 December 2008. The timing of the meeting will be subject to the outcome of our negotiations in relation to the sale of the Companies assets.

This extension will allow us time to market the business for sale as a going concern, negotiate with prospective purchasers, review any proposed Deeds of Company Arrangement (DOCA’s), all of which will assist in maximising the return to creditors.

I advise that an information memorandum has now been released to interested parties.

Indicative key dates in relation to the sales process are as follows:

• 3rd October 2008 - Closing date for submission of indicative non-binding offers.

• 6th October 2008 - Access granted for the on-line data room, management access and mine site visits commence.

• 31st October 2008 - Closing date for submission of final offers.

We will convene the second meeting of creditors as soon as practicable after due assessment of the sale of business process and any Deed of Company Arrangement proposals are submitted to us. Creditors will be notified in writing of the revised date for the second meeting of creditors in due course.

If you have any queries in relation to this matter please contact Rod Taylor of our office on (07) 3257 8549.