Perth, Apr 29, 2008 (ABN Newswire) - Australasia Gold (ASX:AAO) Report on Activities for the quarter ended 31st March 2008. Higlights for the period include:

- First Glencoe drill hole intersects mineralisation over ten (10) metre interval

- Drilling resumed at Murninnie

- Gawler Craton Project joint ventures with UraniumSA Ltd and Peninsula Exploration Pty Ltd

- Cash available at the end of the period: $2.07 million

REVIEW OF EXPLORATION

PINE CREEK (Northern Territory)

At Glencoe gold project (100% owned), the mineralised intersection in the one drill hole completed before the rains commenced assayed 10.0 metres(m)(~7m true width) from 77.0m depth, at 1.2 grams/tonne gold (g/t Au) including 1m @ 6.9 g/t Au. The hole was the first of a 20 hole program which is scheduled to recommence as soon as access is assured.

The annual wet season prevented field work on any of the Company's Pine Creek projects, however planning has been advanced for dry season drilling programs testing the recently optioned McKinlay gold deposit and the recently discovered Ringwood gold anomaly.

MURNINNIE, GAWLER CRATON COPPER GOLD URANIUM PROJECT (South Australia) (AAO - 90%)

UraniumSA Limited Joint Venture

The terms for a joint venture to explore for uranium in the eastern half of the Murninnie exploration licence (EL) 3542 were agreed with UraniumSA Limited (USA). USA has announced the occurrence of potentially significant concentrations of sediment-hosted uranium in a sequence of sedimentary rocks within its EL 3652. This sequence of sedimentary rocks extends across the common boundary into the eastern half of Australasia Gold's EL 3542.

When the Agreement is completed, UraniumSA will apply its knowledge of this mineralisation to explore for similar uranium mineralisation in EL 3542. Australasia Gold's interest in any mineralisation in the basement rocks below the sedimentary sequence will be unaffected by the JV. UraniumSA will fund its own exploration and provide AAO with geophysical data it acquires, and samples of the basement rocks encountered in its drilling.

UraniumSA can ultimately earn the rights to a 70% interest in the sediment-hosted uranium project.

Murninnie Drilling

The results of an infill gravity survey (Figure 2) completed over the gravity anomalies in the south-west corner of EL 3542 (Figures 1 & 3) concluded that the sites chosen for two drill holes completed in 2007 were near-optimal to test whether the features are the result of iron oxide copper-gold-uranium mineralisation at depth. In light of data collected from the 2007 drilling and the improved anomaly definition afforded by the new gravity survey it was determined that the source rocks lay at greater depths than those tested by the initial drill holes. A program to deepen both holes commenced late in the quarter. At the time of reporting, MDD 001 had been completed at 754m, intersecting scattered hematite in fractures, occasional traces of copper mineralisation and intervals of basic intrusive rocks which may explain the gravity anomaly. At the time of reporting drill hole MDD 002 had just been recommenced. Assessment of the drill core from MDD 001 is continuing.

Peninsula Exploration Joint Venture

A joint venture was concluded with Peninsula Exploration Pty Ltd, the holder of EL 3767 which adjoins Murninnie EL 3542 to the west (figure 1). Australasia Gold has the right to earn a 76% interest in the EL by the expenditure of $4.5 million over seven years.

An initial gravity survey confirmed the extent of the continuation of the gravity anomaly being tested by MDD001 inside the EL 3767 boundary (Figure 2), and a second survey defined a separate positive gravity feature in the centre of the EL (Figure 1). The latter feature will be followed up later in the year.

NEW BUSINESS DEVELOPMENT

The Company maintained an aggressive program of project evaluation both within Australia and internationally throughout the period. Three substantial projects are subject of continuing negotiation.

PROGRAM FOR JUNE QUARTER

Drilling will be completed at Murninnie, determining whether iron oxide copper gold-bearing mineralisation is responsible for the Murninnie gravity anomalies.

In the Pine Creek region, the Glencoe program of reverse circulation (RC) and diamond core drilling will be resumed, and initial reconnaissance and a short program of RC drilling should be completed at the recently optioned McKinlay gold deposit.

The UraniumSA joint venture agreement over the eastern part of Murninnie EL should be settled, and exploration commenced.

Consideration and negotiation of new project opportunities will continue.

CORPORATE

ISSUE OF OPTIONS

Directors resolved subject to shareholder approval to issue 500,000 options to Managing Director Trevor Ireland. The unlisted options are to be issued on the following terms:

Exercise price 58% greater than the closing share price on the date of resolution - $0.15;

Term - five years from the date of resolution: expiry - 7th April 2013.

FINANCE

At 31st March 2008 the Company had available cash totalling A$2.07 million

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Trevor Ireland who is a Fellow of the Australasian Institute of Mining & Metallurgy. Mr Ireland is an employee of Australasia Gold Limited and has sufficient experience relevant to the styles of mineralisation under consideration and to the subject matter of the report to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Ireland consents to the inclusion in the report of the matters based on his information in the form and context in which they occur.

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