Why Tramways? / Production Growth / Exploration Potential / Business Strategy

TRAMWAYS TENEMENTS

The Tramways Tenements consist of a total of 37 contiguous mineral leases, encompassing approximately 50km squared.  The Tramways Project is located in the Kambalda Nickel Province – a world class nickel mining district in Western Australia.

The Tramways Tenements hosts 8 observed nickel channels, of which only 3 (Lanfranchi, Helmut, Schmitz-Skinner) have witnessed any appreciable mining or exploration activity. Significant exploration potential exists on the property.

In May 2006, Brilliant acquired 100% of Donegal Resources Ltd., a private Australian mining company which held a 25% interest in the Tramways Tenements Project. Through the acquisition of Donegal Resources Ltd. Brilliant acquired a 25% interest in the Tramways Tenements, host to the currently producing Lanfranchi Nickel Mine. Mine production at Lanfranchi is scheduled to ramp up through 2007 to attain a target of 10,000 tonnes of nickel metal annually by 2008.

WHY TRAMWAYS TENEMENTS?

Host to the producing Lanfranchi Nickel Mine, 8 Nickel Flow Channels, and additional exploration potential.

• Located in the World-class Kambalda Nickel District, Western Australia, one of the largest nickel provinces in the world
  • Over 1,000,000 tonnes of nickel metal (35Mt @ 3% Ni) produced from 25 mines in Kambalda Nickel District since the 1960’s
     
• Lanfranchi Nickel Mine produced approximately 10% of the total nickel metal from the entire Kambalda Nickel District 
  • Lanfranchi Nickel Mine is located 42km from a nickel concentrator
  • 30 - 40 km of underground workings and significant modern development
  • $100 million invested by former operator in capital infrastructure
     
• 8 Nickel Flow Channels on the property
  • Only 3 of the 8 Channels have witnessed any appreciable mining or exploration activity
  • All flow channels contained within Tramways Tenements boundaries
  • Geology on Tramways Tenements similar and on trend to that of Kambalda Mining Camp
     
• All deposits Open at depth
  • Lowermost production level is currently at 800m below surface
  • Existing Kambalda district mines are mining at 1200m depth with mine plans extending down to 1400m.

PRODUCTION GROWTH

The Lanfranchi Nickel Mine is now generating increased positive cash flow following the deliveries of ore from the high-grade Helmut South deposit.  Production is on schedule with current production rates of 15,000-24,000 tonnes per month and, as a more aggressive mine plan is adopted, increased production rates are expected in the foreseeable future.

• New Sources are Coming Online
  • Winner orebody scheduled to commence production - Q3 07
  • Lanfranchi orebody scheduled to commence production Q3 07
  • Management is currently performing a detailed mine design on the Deacon Resource towards a reserve estimation with earliest production projected to commence during the second half of 2007

On Going Production Generating Positive Cash Flow

• Continue mining the Helmut South orebody and 4420 Zone

Ramp Up Production - Convert Resources to Reserves

• Production from Winner, Lanfranchi and Deacon* in 2007
  * (Contingent upon positive feasibility study) 

Cash flow from the Lanfranchi Nickel Mine will provide Brilliant a solid platform for growth through potential acquisitions and exploration success.

EXPLORATION POTENTIAL

• Test the northern limb of the modeled overturned Tramways Dome along a fence with 200m spaced drill holes.
   
• Test down plunge on known zones and existing resources:
  • Deacon down-plunge and up-plunge extents
  • Helmut South Extensions and Helmut Far South Extensions
  • Schmitz Extension
  • Lanfranchi Extension
    
    
• Potential targets that warrant further exploration:
  • Helmut West
  • Ham South
  • Lanfranchi West
  • West Edwin Deeps
  • Schmitz far South

All of the above targets are within reasonable development distances from current mine development and infrastructure.  In addition to the current resources listed above, the resources of Cruickshank and Gigantus provide excellent exploration opportunity, as they are large resources at present and relatively close to the surface.

BUSINESS STRATEGY

• Short term – Currently re-investing cashflow back into capital development to bring additional resources into production by August of 2007.
• Long-term – Use capital to take advantage of acquisition and exploration opportunities.

Read more for the acquisition of Tramways Tenements