Bobija - Base Geology and Exploration Permit

Highlights:

• Exploration License covers prospective stratigraphy around the Bobija barite mine
  
  
• Previous exploration and mining focused only on barite -- associated massive sulphide mineralization recognized by REO as SEDEX type
  
  
• Company sampling of the massive sulphide at Bobija yielded 6 m @ 5.05% Pb, 5.68% Zn, 0.85% Cu, 161 g/t Ag, 1.56 g/t Au
  
  
• SEDEX district with good potential for discovery of further high-grade zinc-lead-silver mineralization

Background:

The Bobija Exploration Permit surrounds the Bobija barite(-lead-zinc-silver) deposit, which has been explored and exploited for barite only, and the Tisovik lead occurrence in the Podrinje Mining District, western Serbia. The fine-grained and essentially stratabound nature of the barite and sulphide mineralization at Bobija is typical of the SEDEX (sediment-hosted massive sulphide) or sedimentary-exhalative type of deposit that form the basis of major zinc-lead resources in Europe and elsewhere (e.g. the Rammelsberg and Meggen deposits in Germany - both mined out world-class zinc-lead-barite deposits; Red Dog in Alaska, etc.). SEDEX deposits tend to occur in clusters within their host stratigraphy.

Geology and Mineralization:

The Permit area contains several occurrences of lead-zinc-silver mineralization hosted by a sequence of Triassic and Jurassic carbonates and dark grey marls with intercalated volcanics and clastics. The area occurs within an ESE-WNW trending zone of deformation, and is overprinted by later Alpine deformation and Neogene magmatism.

The massive sulphide mineralization at Bobija is dominated by pyrite with interlaminated fine grained sphalerite and galena. Internal brecciation textures are common. In outcrop the true thickness of the outcropping massive sulphide is about 4 meters. The proportion of barite increases laterally from the massive sulphides. Locally the massive sulphide-barite mineralization is overprinted by late-stage quartz veins and veinlets.

The other lead-zinc deposits that occur in the Podrinje Mining district (eg Veliki Majdan, Srebrenica) are typically vein-type or replacement mineralization, and clearly related to the Neogene magmatic event. The Tisovik occurrence of oxide-lead (cerussite) mineralization occurs about 4 km NE of Bobija and is also probably related to Neogene magmatism.

Exploration Status:

The company sampled the outcropping sulphide mineralization in the barite mine, which yielded 6 m @ 5.05% Pb, 5.68% Zn, 0.85% Cu, 161 g/t Ag, 1.56 g/t Au from 3 samples (2 meter chip-channel samples) from outcropping massive sulphide mineralization. Sampling of dump material confirms the high-grade base (>10% Zn+Pb) and precious metal values. Detailed geological mapping and geochemical sampling of the target stratigraphy is focusing on the identification of other mineralized sub-basins.

Title and Area:

The Bobija Exploration Permit was granted to SEE d.o.o. on 15 September 2007. The Permit covers an area of 33 sq. km.