Adelaide, Dec 11, 2006 (ABN Newswire) - In accordance with the Memorandum of Understanding signed on 8 th September, 2006, Sinosteel Corporation has paid A$1million and extended the exclusivity period for a further two months to complete due diligence and allow legal documentation to be finalised and approvals to be obtained from the Chinese and Australian Governments for the proposed joint venture to develop Crocker Well and other uranium deposits and explore for base metal prospects in the Curnamona Province of South Australia.

A drilling program is planned to commence in early 2007 to upgrade the existing Inferred JORC compliant uranium resource at Crocker Well and Mt Victoria as well as investigate potential additional resources at nearby prospects.

During October PepinNini (ASX: PNN) undertook a reconnaissance survey of 10 regional airborne radiometric anomalies in the vicinity of Crocker Well as located on the attached plan. Detailed scintillometer surveys and geological mapping were completed over each prospect and 87 surface rock chip samples have been submitted to a laboratory for analysis. Representative rock types were collected as well as mineralised samples. Assay results will be announced when received and verified.