Focus Minerals Ltd Holdings⁽¹⁾

CBR Gold Corp. is the fourth largest shareholder of Focus Minerals Ltd. (FML: ASX), holding 140 million shares valued at approximately CA$3.1 million⁽²⁾. These shares were received as partial consideration for CBG’s 50% interest in the Coolgardie Project in Western Australia .  FML has reached some major milestones in the past 12 months including:

• Raising ~AU$28 million in capital markets to re-furbish the Three Mill Hill Treatment Facility
• Commencing mill refurbishments which are on schedule and re-commissioning is expected by December 2009
   
• Reaching total gold production for 2009 fiscal year of 41,401 ounces at an average direct cash cost of AU$603/oz and an average price received of AU$1,047/oz with 70,000 tonnes of ore currently stockpiled
   
• Producing 19,226 oz. of gold through toll treatment plant during latest milling campaign with recoveries exceeding 95%
   
• Targeting gold production of  >80,000 oz. per annum by 2010 and 100,000 oz from 2011 onwards
   
• Commencing a 5,000 metre exploration drilling campaign to achieve production targets with the first phase at the Countess Deposit delivering excellent gold intersections including 7.26 metres @ 5.23 g/t.

Focus Minerals expects to use approximately AU$18 million for refurbishing their treatment facility and AU$8.4 million for resource development, advanced exploration and definition work. The plant refurbishments are on schedule to take 8-10 months, resulting in a substantial increase to annual milling capacity to 1.68 million tonnes per annum with the expectation that milling costs will be reduced by AU$10 to 15 per tonne.    

As of April 30, 2009, CBG’s holdings of FML shares have been released from voluntary escrow and can now be sold at management’s discretion. FML has also confirmed that they will retire the remaining AU$1.25 million note payable to CBG, as well as all senior bank debt and hedging, by December 2009.

(1) CBG has not independently verified any of the summarized information on FML, all of which was obtained from FML’s public announcements which are viewable on their website: www.focusminerals.com.au.
(2) Based on the July 24, 2009 closing share price for FML of AUD 0.024 and  exchange rate of approximately 1 AUD = 0.90 CAD

Australian Drilling Company Generating Revenue

Toro Drilling Services Pty. Ltd. is a wholly owned subsidiary of CBG with operations based in Coolgardie , Western Australia . Toro has an exclusive contract to perform the exploration drilling for Focus Minerals Ltd. on the Coolgardie Gold Project, formerly the subject of CBG’s Redemption Joint Venture. The estimated value of Toro’s operating assets is approximately AU$2 million, including surface, underground, and hand-held diamond drills, as well as a reverse circulation (RC) rig, support vehicles and related inventory.

Since the formation of Toro in February 2008, it has generated more than AU$2 million in drilling revenue on approximately 25,000 meters of drilling. This is expected to improve with the resurgence of the mineral exploration sector in Australasia and the recovery of the global economy overall.

This July 2009, Toro’s underground diamond drill rig was mobilized to recommence exploration at Focus Minerals’ Coolgardie Gold Project, initially targeting extension to the Perseverance, Countess, Empress and Tindals deposits that are currently in production.  This 5,000 metre campaign is intended to deliver additional resources and reserves to underpin increased production capacity once Focus Minerals completes the refurbishment of their mill.

It is anticipated that the exclusive contract with Focus will fully engage Toro’s fleet of drilling assets in due course.  However, Toro continues to pursue other assets, contracts and business opportunities in Western Australia and other markets. In addition, Toro will conduct any drilling that is required by CBG’s Australian projects, such as Jaurdi Hills.