Kalman South Joint Venture

(molybdenum-rhenium-copper-gold)

The Kalman South Project comprises EPM13870, a joint venture between Kings Minerals NL ('Kings') (ASX: KMN) and Syndicated. EPM13870 covers a significant portion of the Kalman molybdenum-copper-gold-rhenium deposit which is open at depth and has potential for extensions along strike. The tenement also contains a number of other targets prospective for copper-gold +/- molybdenum.

Kings has earned a 51% interest in EPM13870 by spending $4 million, and can now earn up to a 70% interest in the tenement by completing a final feasibility study by May 2012. Syndicated is free-carried on the Kalman South Project until completion of a final feasibility study.

Since commencement of the joint venture to August 2008 Kings has drilled 67 holes for about 25,600 metres of mostly core drilling within EPM13870.

The Kalman deposit is hosted in a steeply dipping shear zone adjacent to the regional-scale Pilgrim Fault. The mineralisation comprises chalcopyrite, molybdenite and pyrite within altered calc-silicates (sediments) of the Corella Formation now comprised dominantly of alkali feldspar, actinolite and chlorite.

Mineral Resource Estimate

The most recent Inferred Mineral Resource estimate for the Kalman deposit incorporating new drilling and the rhenium assays was released by Kings to the ASX on September 10th 2008.

The total mineral resource estimate for the Kalman Project as announced was 60.8 million tonnes grading 0.32% Cu, 0.05% Mo, 1.19g/t Re and 0.15g/t Au.

The southern part of the deposit as defined to date within EPM13870 was reported at 36.7 million tonnes grading 0.31% Cu, 0.06% Mo, 1.46g/t Re and 0.15g/t Au.

A copper domain and an internal molybdenum domain were modelled, with a further breakdown into mineralisation potentially mineable by open pit methods above the -100m RL and mineralisation potentially mineable by underground methods below the -100m RL. The deposit has now been drilled on a nominal 100 metre by 100 metre spacing.

Table 4: Kalman Inferred Mineral Resource Estimate within EPM13870 - September 2008

Domain	Cut-off Grade	Tonnes millions	Cu %	Mo %	Re g/t	Au g/t	Tonnes Cu	Tonnes Mo	Ounces Re	Ounces Au
Copper	0.2%Cu	15.3	0.35	0.002	-	0.15	53,600	400	-	76,100
Molybdenum	0.02%Mo	17.5	0.22	0.11	2.88	0.11	38,700	18,400	1,623,700	61,400
Open Pit		32.9	0.28	0.06	1.54	0.13	92,300	18,800	1,623,700	137,500
Copper	0.5%Cu	2.4	0.66	0.004	-	0.38	16,100	100	-	29,300
Molybdenum	0.05%Mo	1.3	0.29	0.12	2.15	0.14	3,900	1,500	93,300	6,200
Underground		3.8	0.53	0.04	0.77	0.29	20,000	1,600	93,300	35,500
Total		36.7	0.31	0.06	1.46	0.15	112,400	20,400	1,717,000	173,000

EPM13870 contains approximately 60% of the tonnes of the total resource, 58% of the estimated contained copper, 67% of the estimated contained molybdenum, 74% of the estimated contained rhenium and 59% of the estimated contained gold.

Based on the current estimate, EPM13870 currently contains an estimated 112,400 tonnes of copper, 20,400 tonnes of molybdenum, 1.7 million ounces of rhenium and 173,000 ounces of gold.

The molybdenum domain which averages 0.11% Mo is considered as one of the higher grade molybdenum deposits with the added advantages of credits of copper, gold and rhenium.

Of note are the significant copper, gold, molybdenum and rhenium values intercepted by K106 and daughter holes K106A, K106B and K106C, some of the last holes drilled at the southern end of the deposit.

Results include:

Selected significant drilling results from K106, K106A, K106B and K106C

Hole number	Intercept
K106A	242m @ 1.28% Cu, 0,48g/t Au and 0.06% MoS2 from 535m
including	7.65m @ 23.4% Cu, 0.51g/t Au and 20g/t Ag from 581.65m
including	54m @ 1.09% Cu, 0.69g/t Au, 0.24% MoS2 and 4.5g/t Re from 666m
including	4m @ 2.27% Cu, 0.56g/t Au, 0.83% MoS2 and 22.3g/t Re
including	55m @ 1.12% Cu, 1.29g/t Au from 720m
K106	185m @ 0.23% Cu, 0.04g/t Au, 0.01% MoS2 from 497m
including	11m @ 1.1% Cu, 0.10g/t Au from 520m
Including	7m @ 1.34% Cu, 0.19g/t Au from 554m
K106B	213m @ 0.16% Cu, 0.13g/t Au, 0.03% MoS2 from 527m
including	19m @ 0.52% Cu, 0.24g/t Au from 612m
including	13m @ 0.51% Cu, 1.50g/t Au, 0.43% MoS2 and 7.9g/t Re from 631m
K106C	293m @ 0.47% Cu, 0.12g/t Au, 0.01% MoS2 from 543m
including	48m @ 2.24% Cu, 0.56g/t Au, 0.03% MoS2 from 698m
and	5m @ 0.72% Cu, 0.39g/t Au, 0.23% MoS2 and 7.4g/t Re from 707m
and	27m @ 3.56% Cu, 0.89g/t Au from 710m

This zone of high copper-gold values over significant widths is open down-plunge to the south and it is considered that it may represent the beginnings of a copper-rich section of the Kalman mineralised zone.

Metallurgy

Kings announced results of preliminary metallurgical testwork in late October 2008. Excellent recoveries of all valuable metals were achieved in the preliminary flotation test work on samples from the two mineralised domains (copper rich and molybdenum rich) in the deposit.

The flotation response and copper and gold recoveries from the copper zone material indicate favourable and conventional process conditions for this material. Copper and gold recoveries to rougher concentrate were 95% and 82% respectively.

The flotation of the molybdenum zone material also produced excellent recovery of the molybdenum and included rhenium into a low mass concentrate. The recoveries of copper and gold were also high. Recoveries of molybdenum, copper and gold to rougher concentrate were 88%, 95% and 78% respectively. Rhenium is contained within the lattice of molybdenite and is recovered during roasting of the molybdenum concentrate. Rhenium shows a strong positive correlation with the molybdenum grades.

Further testing is underway to investigate cleaning of the rougher concentrate at various regrind size distributions and to establish communition characteristics of the material.

Quantitative mineralogical analysis on six samples indicated that the most common copper species was chalcopyrite (>90%) with chalcocite and bornite present in trace amounts. The only molybdenum bearing mineral was molybdenite.

Kings is presently undertaking project studies to evaluate the opportunities for development of the deposit including further mining, metallurgical and baseline environmental studies.

Dronfield Joint Venture

Agreement was reached with Universal Resources Limited (Universal) on the terms of a joint venture in which Syndicated may earn up to an 80% interest in Universal's Dronfield tenement, (EPM14369) located approximately 70 kilometres southeast of Mount Isa in Northwest Queensland. The tenement abuts the southern margin of Syndicated's Kalman South tenement EPM13870 and covers the southern extension of the regional scale Pilgrim Fault.

Under the terms of the agreement Syndicated may expend:

• $250,000 on exploration within 2 years, to earn a 40% equity interest
• a total of $500,000 on exploration within 3 years to earn a 60% interest
• a total of $1,000,000 on exploration within 4 years to earn 70% interest

Either party may then choose to contribute or dilute.

Should Universal choose to dilute, then Syndicated may sole fund a further $1,000,000 on exploration over two years to increase its equity to 80% interest.

If Syndicated earns 80%, then Universal will be free carried to a decision to mine.

If either party's equity falls to 10% or less then that interest will be converted to a 1.5% net smelter return.

EPM14369 contains several known copper, gold, molybdenum and uranium prospects and covers nine kilometres of strike length of the Pilgrim Fault. The tenement complements Syndicated's current 49% interest in EPM13870 (Kalman South Joint Venture).

The joint venture agreement with Universal on EPM14369 attests to Syndicated's confidence in the potential of the Pilgrim Fault zone to host further significant mineral deposits.

A soil sampling program over the strike extensions of the Pilgrim Fault has commenced.