During the year ended 31 December 2011 the Fire Mining Company acquired three

areas - Metal, Earth, and Water. Fire Mining has spent the past year undertaking

exploration and evaluation activities in these three areas of interest. Details of the costs

incurred are as follows:

Site

Exploration Costs & Evaluation Costs

Metal

$20,000,000

Earth

$10,000,000

Water

$36,000,000

In 2012, Zinc is discovered at the Metal site. The Earth site is abandoned. Exploration at

the Water site is still preliminary and company geologists expect to have access to core

drilling data in 2013 which will assist in assessing the feasibility of the area of interest.

It is estimated that the Metal site has 3,000,000 tonnes of Zinc. Of the total $20,000,000

of exploration and evaluation costs incurred at Metal, 80% of the expenditure relates to

property, plant and equipment, and the remaining 20% relates to intangible assets.

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