Operations - Serbia

SERBIAN EXPLORATION
Serbia

DPM has been actively exploring in Serbia since 2004 and is the largest holder of mineral exploration licenses in the country. The Company currently holds 11 exploration licenses (748 square kilometres) and three concession licenses (153 square kilometres) for a total landholding of 901 square kilometres. In addition, a number of license applications are pending with the Ministry of Mines and Energy.

Exploration targets within the licenses include porphyry copper-gold and molybdenum deposits, skarn-hosted base metal and gold, sediment-hosted epithermal gold, low sulphidation epithermal gold-silver and high sulphidation epithermal gold-silver-copper mineralization.

The DPM exploration tenements are located within several significant mining districts in Serbia including the Timok Magmatic Complex (hosting the Bor and Majdanpek deposits), the Lece Magmatic Complex (hosting the Lece mine) and the Besna Kobila-Osgovo Metallogenic Belt (hosting the historic Mackatica molybdenum mine). By the end of 2007, a total of 63,177 metres of diamond drilling had been completed, including 4,289 metres of reverse circulation drilling. DPM currently has up to 12 drill rigs operating in country testing targets on the Timok Concession licenses, the Surdulica exploration license and various regional targets. Other exploration activities currently underway include geological mapping and substantial geochemical soil and trenching surveys. Major airborne and ground geophysical surveys have also been undertaken on the Timok Concession licenses and various other exploration licenses. In addition, DPM is continuing environmental baseline studies of the Timok area.

Exploration activity (geological mapping, soil sampling, trenching, ground geophysical surveys and diamond drilling) continued on the Timok concession and exploration licenses during the reporting period. Recent assay results have been significant, confirming the existence of a major limestone hosted gold mineralized province along the boundary of the Timok Magmatic Complex.

Prospect-scale mapping and substantial trenching were also completed on the Coka Kuruga, Tilva Njagra and Jasikovo licenses. Trenching at Bozuluj intersected limestone hosted gold mineralization and trenching at Valja Strz intersected significant porphyry style mineralization.

Regional Licenses

Regional work programs continued and substantial exploration activities took place during the quarter. Work completed during the period included geological mapping, soil sampling, channel sampling and drilling. Significant diamond and reverse circulation drilling continued on the Surdulica license to expand the footprint of the historic molybdenum deposits at Mackatica and Borovik and a major zone of molybdenum-rhenium mineralization was confirmed. Geological mapping has shown that the Mackatica and Borovik areas form part of a contiguous mineralized zone.

DPM has initiated a scoping study at Surdulica which will be used to define the parameters for a pre-feasibility study. It is expected that the scoping study will be completed in the second quarter of 2008. For further information, please refer to the press release issued by DPM on November 5, 2007, which has been filed on the SEDAR website at www.sedar.com.