Interpretation Report of a Ground Gravity Survey In Southern NZ (Waiau-Te Anau Basin) PPL 38074.

Three-D Gravity, Inc was selected to interpret gravity data from an onshore concession on the South Island of NZ. The interpretation of gravity data was integrated with surface geologic, regional seismic profiles and aeromagnetic data to produce a structure contour map on top of high-density basement. The following conclusions are drawn: 1. A significant mappable density contrast exits between the Tertiary and Pre-Tertiary rocks; 2. The gravity-derived Top of High Density Basement map shows the approximate morphology of the basin; 3. The gravity analysis shows a series of northerly-trending normal faults and, in addition, shows some NE cross faults; and 4. Magnetic basement and high density basement are detailed enough to rule out hitting a shallow pluton over a moderate to poor quality seismic structure.