PILBARA PROJECTS

EAST PILBARA

The Palaeo- to Mesoarchaean North Pilbara Terrane of the Pilbara Craton in Western Australia has produced significant amounts of gold in recent years, with the Bamboo Creek deposit (7.05 t Au), the Golden Spec deposit (2.06 t Au to 1987) and the Lynas Find district (3.8 t) being major contributors. The discovery of additional significant Au resources have included the Golden Eagle deposit (6.67Mt @ 1.96 g/t Au for 10.1 t Au), the Klondyke deposit (9.95 Mt @ 1.0 g/t Au for 10.0 t Au) and the Indee area (4.96 Mt @ 2.08 g/t Au for 10.3 t Au), confirming the regional gold prospectivity of the Pilbara alongside established potential for base metals mineralisation (Nifty, Whim Creek, Copper Hills).

Montezuma's current interests in the Pilbara region comprise a 10% free carried interest in one gold project at Pilgangoora.

PILANGOORA

The Pilgangoora Project (MZM 10%) is situated approximately 80 kilometres south-southeast of the coastal town of Port Hedland and covers 35 km2 of mafic and ultramafic units, adjacent to and along strike from the Lynas Find Deposit, the largest known Archaean gold producing location in the Pilbara.

The holding also covers a sequence of ultramafics that remain untested for nickel prospectivity, with known anomalism along strike to the south returning values of up to 1.2% nickel from surface sampling of gossanous outcrop from previous work.

Both the gold and nickel potential of the Project are largely untested, and Montezuma has proposed a comprehensive programme to test this potential.

Montezuma and Trafford Resources have entered into a split commodity agreement whereby Montezuma can earn a 70% interest in the nickel rights over Trafford’s tenements and Trafford can earn a 70%interest in the gold rights over Montezuma’s tenement, each by completing a Bankable Feasibility Study

EASTERN GOLDFIELDS PROJECTS

LEONARA (MONTEZUMA 80%)

The Weebo Project is the single project area within the Yilgarn Province, and comprises approximately 230 km2 in two pending Exploration Licenses. The Project is within a known gold mineralized region with multiple economic and sub-economic deposits of varying sizes in the immediate surrounds, with Thunderbox (2.2 million ounces Au) to the northwest and Wonder North and Celtic (combined resource of 282,000 oz Au) to the south.

WEEBO

The Weebo Project is located approximately 80 km north of Leonora within the Yilgarn+ Craton of Western Australia and comprises 3 exploration leases 1 prospecting lease and one pending exploration lease. The project is approximately 10 km southeast of the Thunderbox gold deposit (2.2M ounces) and north of a gold mineralised region containing the Wonder North and Celtic gold deposits. A programme of aircore (AC) and rotary air blast (RAB) drilling was carried out early 2007. The programme was designed to follow up a geochemical anomaly highlighted by historic auger sampling beneath Tertiary transported cover sequences. Sixty-three AC and five RAB holes were drilled for a total of 3,664m.

Four metre composite samples were collected and sent for multi-element analysis. Only low level gold anomalism was returned, although geochemical anomalies are typically very low order in the target area, and further analysis is required to determine the significance of these results.

Field logging highlighted a zone of intense K-feldspar, chlorite and mica alteration in the southeast corner of the completed drill programme. Despite the subdued assay results, geological indications are that the potential remains for a large mineralised system. The assay results and geological information obtained from the programme will be further assessed over coming quarter to determine the need for further work on this target .

DURACK

Previous workers have identified an Indicated and Inferred gold Resource at Durack of 567,679t @ 2.34 (1.0g/t cutoff, and top-cut of 25 g/t) for a total of 42,659 oz Au.  Uncut, the resource grade increases to 3.33 g/t with an increase in total ounces to 60,836.

Several exploration targets have been identified within the lease which provide opportunities to add to this additional resource. Montezuma will undertake a detailed internal assessment of these and other target areas before planning the first phase of work to progress the project.

The acquisition adds to Montezuma’s existing gold Resources at Peak Hill and is an important step to achieving the Company’s stated strategic goal of an initial target gold Resource of 500,000 ounces to underpin it’s plans to recommence production from the gold field.he Robinson Range Project is located approximately 125 km north of Meekatharra in Western Australia.

The gold mineralisation at Durack is associated with pyrite alteration on the margins of steeply dipping quartz veins within a package of intercalated mafic volcanics and sedimentary rocks. The main mineralised zone is broadly concordant with stratigraphy, trending at 130°, dipping sub-vertically to the north-east.

Highlights from the most recent drilling at Durack, completed in 2003 include:

•    12m @ 15.16g/t Au from 87m (DURC004)
•    8m @ 11.86g/t Au from 14m (DURC005)
•    13m @ 4.68g/t Au from 77m (DURC008)
•    8m @ 2.20g/t Au from 94m (DURC008)

MT PADBURY PROJECT

The project (100% Montezuma) lies approximately 100km north of Meekatharra and 30km west of the Peak Hill gold mine in Western Australia. The Mt Padbury Project comprises one exploration license E52/1529 covering approximately 214 km ² .

Previous work over the project has included comprehensive surface geochemical sampling and RAB testing of the resulting gold anomalies at Rudd’s Ridge, Rudd’s Ridge East, Bare Flat and Wood Creek.

The Wood Creek prospect has returned the best results to date, with a surface anomaly extending over 800m X 400m coincident with a northwest trending regional structure. Gold mineralization at Wood Creek has been defined by RAB drilling over a strike length of approximately 400m, open to the southeast and northwest. The mineralized envelope is approximately 200m wide in the central section, suggesting excellent potential for a significant mineralized system.

The Wood Creek Prospect is progressively covered along strike to the southeast by material shedding from the Robinson Ranges, and it is likely that any surface geochemical anomalism is masked in that direction. This means that mineralization could continue beyond the boundary of the current soil anomaly.

RAB Drilling results to date from Wood Creek include:

Average drilling depth to date is approximately 30m and numerous holes finish in mineralization. Montezuma is of the view that results to date warrant testing at depth and intends to commence an RC programme to further test this target as soon as practicable.

Montezuma entered into an agreement with Midwest Corporation Limited in September 2008 whereby Midwest will purchase 100% of the iron ore rights over E52/1529 by paying Montezuma up to $6M cash plus a royalty on production.

The completion of this sale with Midwest is an exciting milestone for Montezuma, providing the Company with important working capital to fund our ongoing exploration work at the Peak Hill Gold Project (MZM 100%) and our regional portfolio, with retained exposure to the iron ore potential should Midwest be successful in commencing a mining operation within the project area.

Montezuma successfully negotiated an agreement with Auvex Metals Limited for the sale of the manganese rights over the Mt Padbury licence E52/1529 in May 2008.

In consideration for the sale, Montezuma will receive 10M fully paid ordinary shares in the issued capital of Auvex. On listing, this holding will represent approximately 12% of the issued capital of Auvex. Montezuma retain a $2/DMT royalty and will nominate one director to the Board of Auvex. The agreement provides Montezuma with a major equity interest in an emerging manganese producer ideally positioned to capitalise on very

strong demand and high prevailing prices currently associated with global manganese markets. As a major shareholder in the company, Montezuma will be ideally placed to benefit from the strong revenues projected to flow from the proposed operations. Work to date at Mt Padbury has highlighted the potential for significant manganese mineralisation with rock-chips consistently grading over 40% Mn as previously reported. Auvex intends to list on the Australian Stock Exchange in early 2009 at a projected IPO price of $0.50. Montezuma is pleased to be a key partner in this venture and looks forward to sharing in Auvex’s success during this period of record manganese prices.

We look forward to keeping the market appraised as key milestones and payments related to this agreement are completed.

BUTCHER BIRD