The Company embarked upon its proposed role in the mineral exploration and development industry in September 1985 through reconstruction of All State Foods Limited involving the acquisition of Petroleum Securities Mining Company Pty Limited which held interests in six properties, Sheahan-Grants, Junction Reefs, Norton, Mertondale, Beaufort and Deepwater.

Climax Mining commenced mining at Sheahan-Grants in 1988 and produced approximately 20,000 to 30,000 ounces of gold per year until the mine closed in 1996, when economically minable ore was exhausted.

Exploration of Climax Mining’s properties resulted in the discovery of the Dinkidi gold, copper deposit at Didipio approximately 200 kilometres north of Manila in the Philippines. A feasibility study, conducted by Minproc Limited in 1998, showed that an underground mine using a block caving method to treat approximately two million tonnes of ore per annum would be viable at metal prices of US$325 per ounce of gold and 95 cents per pound of copper.

Climax Mining's Philippines subsidiary, Climax-Arimco Mining Corporation (CAMC) was granted the first Financial or Technical Assistance Agreement ("FTAA") for a mining project in the Philippines by the Philippines Government in 1994. This title has subsequently been transferred to Australasian Philippines Mining Inc., (‘APMI’), a wholly owned subsidiary of Climax Mining, established in the Philippines specifically for the purpose of developing the Dinkidi project. The FTAA of 21,465 hectares covers the Company's major copper, gold discovery at Didipio and grants title, exploration and mining rights with a fixed fiscal regime for a period of up to 50 years from the date of grant.

In the intervening years, Climax has ventured into Argentina, Ecuador, Fiji, Philippines and numerous prospects within Australia with its continued objective to increase ore reserves, production and profitability through successful exploration, effective development and efficient operations.

In 2003, Climax re-focussed its energy towards the Dinkidi project at Didipio, with the objective of generating shareholder value and establishing a world class mining operation in the Philippines, through the total review of previous technical and economic studies and appointment of a new Chief Executive Officer, Jim Askew Chief Operating Officer, Rob Thomson and Director of the Philippines, Joey Leviste Jr.

In October 2003 the Dinkidi Definitive Feasibility Study (“DFS”) was completed and it demonstrated the economic value of the project. This prompted the company to proceed with the permitting process for the development of Dinkidi and with further optimisation studies to enhance the value of the project. The company was focused on progressing approvals for construction of the Dinkidi Project and community development activities in the Didipio Valley (‘Valley’).

On 6 August 2004 the company was presented with a new Environmental Compliance Certificate (‘ECC’) issued by the Department of Environment and Natural Resources (‘DENR’). The ECC approval was granted based on the revised mine plans and environmental safe-guard designs developed in the DFS.

This ECC is a major approval milestone in the continuing development of the Didipio Project. The ECC was granted after extensive consultation and input with the local community, DENR and other relevant Government authorities. The ECC replaces the previous approval based on a largely block cave operation at the same process rate.

Following the grant of the ECC the company submitted the Environmental Protection and Enhancement Programme for consideration and approval.

On 14 January 2005 Climax was granted the Didipio Project's Environmental Protection and Enhancement Programme (‘EPEP’).  The EPEP was an important milestone in the overall permitting process and provides the critical operational link between the environmental protection and enhancement commitments under the Philippine Mining Act, the Philippine EIS System and the development and operations of the Didipio Gold/Copper Project

In March 2005, the original DFS completed in October 2003 was updated by Ausenco Limited, the engineering firm who conducted the original study, to incorporate recent global increases in capital and operating costs. The updated study determined that these cost increases were more than offset by the substantial increase in gold and copper prices. This indicated that Dinkidi continues to be a financially robust project.

0n 22 August 2005, Mr Michael Defensor, Secretary of the Department of Environment and Natural Resources (‘DENR’), Philippines, announced approval of the Definitive Feasibility Study (‘DFS’) for the Dinkidi Project contained within the Didipio FTAA.

The DENR stated in it’s August 2005 release:-“The Didipio copper-gold project is among the Governments flagship mining projects” and continued “The mining project is economically and technically viable and we are assured that they can comply with all the social, environmental and fiscal requirements of the Mining Act of 1995 and its implementing rules and regulations”.

The approval of the DFS study component of the Declaration constituted affirmation by the Philippine Government for Climax to proceed to development and construction of Dinkidi.

Subsequent to the August 22 release, the Company then gained in September the final Local Government Unit approval through the Provincial Government of Neuva Viscaya thus completing all requirements under the FTAA and the Mining Act to allow the Dinkidi approval to be granted.

On October 13 2005, Secretary Michael Defensor of the Department of Environment and Natural Resources (‘DENR’) announced the DENR has given the effective Permit to Operate for the development of the Dinkidi gold/copper project (‘the Project’) contained within the Didipio FTAA 001 located in Central Luzon, Philippines.

Climax is now rapidly advancing discussions with a number of key banking institutions and potential concentrate off-take financing groups in Australia and overseas regarding the financing of the project. The groups selected have shown a keen interest in lending to the Dinkidi Project and the re-emergence of the Philippines mining industry in general.

The History So Far..

February March 2006 Update