Apart from the high prospectivity of the Didipio FTAA, the Company also has a number of granted exploration areas adjacent to the FTAA area and has applied for several other areas during the year. The Company intends to re-activate exploration activity in the FTAA and these adjacent areas in 2006.

Climax holds a very prospective gold and copper exploration portfolio in the Philippines in both Northern Luzon and the Surigao Peninsula area of Northern Mindanao. During the year, exploration activities recommenced at the Company’s Surigao Peninsula properties focusing initially on the Company’s wholly owned interest at Manhulayan, gold-copper area.

Didipio FTAA and adjacent exploration areas, Luzon Island, Philippines.
Climax interest 92% in FTAA and 100% generally in the Exploration areas.
Operator: Australasian Philippines Mining Inc, a wholly owned subsidiary of Climax Mining Limited.

The Didipio FTAA area hosts numerous high quality gold and gold/copper exploration targets both within the Didipio Valley and to the west of Dinkidi. The Company also has a number of granted exploration areas adjacent to the FTAA and has applied for several other areas during the year. It is planned that exploration outside of Dinkidi will recommence in 2006 which will target additional gold/copper resources.

True Blue
Climax interest: 92%
True Blue is gold copper porphyry located 1 kilometre east of Dinkidi. Significant results from previous drilling include 30 metres of 1.3g/t Au and 0.3% Cu.

D'Fox
Climax interest: 92%
D'Fox is a gold rich copper porphyry and associated collapse breccia pipe, located 1.5 kilometres to the southeast of Dinkidi at a structural intersection. Significant results from previous drilling include 36 metres of 1.1g/t Au and 0.4% Cu and 84 metres of 1.0g/t Au and 0.4% Cu.

Papaya-FHB Intrusive Complex
Climax interest: 100%
Papaya is porphyry gold, copper system located 12 kilometres to the west of Didipio with a roughly circular area of alteration 7 kilometres in diameter. Anomalous gold and copper is pervasive with higher grades evident in areas such as a 5 metre channel sample at Ubon Creek returning 3.7g/t gold, 0.1% copper and 0.1% molybdenum.