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Overview

Oropa Limited (“Oropa or the Company”) has made significant progress with advancing the Pungkut gold project (“Pungkut”) in Northern Sumatra, Indonesia. To date, Oropa has completed three drilling programs (40 holes for 5,625 metres) at the Sihayo 1 North, Sihayo 2 and Sambung prospects and in doing so, doubled the inferred gold resource at Sihayo 1 North previously outlined by Pacmin Mining Corporation Limited (“Pacmin”).

Encouraged by the results from the first year’s field activities, on 27 August 2004 Oropa finalised settlement with Pacmin and Western Metals Copper Limited (“WMCL”) collectively (“the Vendors”) for Oropa to purchase a 100% equity interest in Aberfoyle Pungkut Investments Pte Ltd (“API”) to acquire its 75% beneficial interest in the Pungkut Contract of Work (“Pungkut CoW”). PT Aneka Tambang (“ANTAM”), Indonesia’s government mining corporation holds the remaining 25% interest. The Vendors had over a period of time and during a sequence of corporate takeovers, undertaken systematic regional reconnaissance and a follow-up drilling program at Pungkut from 1995 to 1999 at a cost of approximately US$2.5 million. These regional programs over most of the original Pungkut CoW led to an eighteen hole diamond drilling program being completed at Sihayo 1 North which outlined a resource of approximately 304,000 oz Au (3.5Mt @ 2.7g/t Au), with a 1.0 g/t Au lower cut-off. Results obtained since the commencement of Oropa’s drilling programs until now have increased this inferred resource to 609,000 oz Au contained within 7.1Mt grading @ 2.7 g/t Au, using the same lower cut off at 1.0g/t Au. As at 31 July, Oropa spent $2.26 million on the project. Oropa’s interpretation of the drill results obtained to date suggest that there is considerable upside mineral potential along strike and at depth at Sihayo 1 North.

The current Punkgut CoW covering an area of 66,200ha and has recently had its exploration period extended to 6 October 2005. At the end of the exploratoin period, the CoW moves into a Feasibility Study phase of tenure.

As reported in last year’s Annual Report, Oropa’s other key project, the Block D-7 diamond project in India has been a source of prolonged frustration. Some shareholders may recall that the Company enjoyed considerable success from the field results obtained from exploration conducted throughout most of 2000 and during the first quarter of 2001, at which time access to the project area was inexplicably stopped by Chhattisgarh’s inaugural state government. Chhattisgarh was formerly part of Madhya Pradesh and was promulgated by the Indian central government in November 2000. After failing to reach an acceptable solution through dialogue with the state government, the Indian operating company and holder of the Block D-7 Prospecting License (“P/L”), B.Vijaykumar Chhattisgarh Exploration Pvt Ltd (“BVCE”) initiated legal proceedings against the state in the high court of Chhattisgarh in January 2002. Although the judicial process was considered to be the best method to expedite a settlement to this bizarre situation, little or no progress was achieved through the judicial system until very recently.

Subsequent to the end of the financial year, BVCE has made a number of positive steps towards having the Block D-7 P/L resurrected via negotiations with the newly elected state government, while at the same time applying jointly with the state government to have the case dismissed by the court. At the time of writing, negotiations are at an advanced stage but no decision has been handed down by the court. However, given recent encouragement from Oropa’s Indian joint venture partners, it is becoming more likely that this protracted case may be resolved during the fourth quarter. Should this occur, other mineral projects that have been indentified by Oropa’s geologists and applied for in the name of our Indian joint venture company, B.Vijaykumar Technical Services Pvt Ltd (“BVTS”) in Chhattisgarh and Andhra Pradesh are also likely to be approved by the respective state governments for endorsement and ratification by the Indian central government.

In order to remain focussed on Pungkut, a number of Australian projects were relinquished and the Company is presently only carrying values forward on two Western Australian prospects. Although Oropa holds minority interests in a number of others, these interests are free carried, or other parties are responsible for maintaining them in good standing. Owing to the protracted legal issues associated with resurrecting the Block D-7 P/L which was suspended in early 2001, Oropa has been obliged to write down the carrying value of $1,302,749 on this project, until the P/L is reinstated and BVCE is granted legal title to the project area, at which time the carrying value will be taken up in the Company’s accounts. This is an accounting procedure and one that is adopted with projects where exploration and mining companies are prevented from accessing the ground.

On 13 February 2004, the Company announced that its securities had been listed on the Frankfurt stock exchange in Germany, arising from increased interest by European investors in Oropa’s securities. At the time that Oropa undertook its last placement in mid-2003 to raise up to $2.5 million, European investors subscribed for shares and options to a value of $700,000.

In April this year, Dr John Bristow, an eminent South African geoscientist with over 20 years experience in the South African diamond industry, resigned as a director of the Company to pursue his professional interests in Botswana and added workload as chief executive officer of Kalahari Diamond Limited. However, Dr Bristow will be available periodically to undertake future consultancy services to Oropa, if required.



			Overview Oropa Limited (“Oropa or the Company”) has made significant progress with advancing the Pungkut gold project (“Pungkut”) in Northern Sumatra, Indonesia. To date, Oropa has completed three drilling programs (40 holes for 5,625 metres) at the Sihayo 1 North, Sihayo 2 and Sambung prospects and in doing so, doubled the inferred gold resource at Sihayo 1 North previously outlined by Pacmin Mining Corporation Limited (“Pacmin”). Encouraged by the results from the first year’s field activities, on 27 August 2004 Oropa finalised settlement with Pacmin and Western Metals Copper Limited (“WMCL”) collectively (“the Vendors”) for Oropa to purchase a 100% equity interest in Aberfoyle Pungkut Investments Pte Ltd (“API”) to acquire its 75% beneficial interest in the Pungkut Contract of Work (“Pungkut CoW”). PT Aneka Tambang (“ANTAM”), Indonesia’s government mining corporation holds the remaining 25% interest. The Vendors had over a period of time and during a sequence of corporate takeovers, undertaken systematic regional reconnaissance and a follow-up drilling program at Pungkut from 1995 to 1999 at a cost of approximately US$2.5 million. These regional programs over most of the original Pungkut CoW led to an eighteen hole diamond drilling program being completed at Sihayo 1 North which outlined a resource of approximately 304,000 oz Au (3.5Mt @ 2.7g/t Au), with a 1.0 g/t Au lower cut-off. Results obtained since the commencement of Oropa’s drilling programs until now have increased this inferred resource to 609,000 oz Au contained within 7.1Mt grading @ 2.7 g/t Au, using the same lower cut off at 1.0g/t Au. As at 31 July, Oropa spent $2.26 million on the project. Oropa’s interpretation of the drill results obtained to date suggest that there is considerable upside mineral potential along strike and at depth at Sihayo 1 North. The current Punkgut CoW covering an area of 66,200ha and has recently had its exploration period extended to 6 October 2005. At the end of the exploratoin period, the CoW moves into a Feasibility Study phase of tenure. As reported in last year’s Annual Report, Oropa’s other key project, the Block D-7 diamond project in India has been a source of prolonged frustration. Some shareholders may recall that the Company enjoyed considerable success from the field results obtained from exploration conducted throughout most of 2000 and during the first quarter of 2001, at which time access to the project area was inexplicably stopped by Chhattisgarh’s inaugural state government. Chhattisgarh was formerly part of Madhya Pradesh and was promulgated by the Indian central government in November 2000. After failing to reach an acceptable solution through dialogue with the state government, the Indian operating company and holder of the Block D-7 Prospecting License (“P/L”), B.Vijaykumar Chhattisgarh Exploration Pvt Ltd (“BVCE”) initiated legal proceedings against the state in the high court of Chhattisgarh in January 2002. Although the judicial process was considered to be the best method to expedite a settlement to this bizarre situation, little or no progress was achieved through the judicial system until very recently. Subsequent to the end of the financial year, BVCE has made a number of positive steps towards having the Block D-7 P/L resurrected via negotiations with the newly elected state government, while at the same time applying jointly with the state government to have the case dismissed by the court. At the time of writing, negotiations are at an advanced stage but no decision has been handed down by the court. However, given recent encouragement from Oropa’s Indian joint venture partners, it is becoming more likely that this protracted case may be resolved during the fourth quarter. Should this occur, other mineral projects that have been indentified by Oropa’s geologists and applied for in the name of our Indian joint venture company, B.Vijaykumar Technical Services Pvt Ltd (“BVTS”) in Chhattisgarh and Andhra Pradesh are also likely to be approved by the respective state governments for endorsement and ratification by the Indian central government. In order to remain focussed on Pungkut, a number of Australian projects were relinquished and the Company is presently only carrying values forward on two Western Australian prospects. Although Oropa holds minority interests in a number of others, these interests are free carried, or other parties are responsible for maintaining them in good standing. Owing to the protracted legal issues associated with resurrecting the Block D-7 P/L which was suspended in early 2001, Oropa has been obliged to write down the carrying value of $1,302,749 on this project, until the P/L is reinstated and BVCE is granted legal title to the project area, at which time the carrying value will be taken up in the Company’s accounts. This is an accounting procedure and one that is adopted with projects where exploration and mining companies are prevented from accessing the ground. On 13 February 2004, the Company announced that its securities had been listed on the Frankfurt stock exchange in Germany, arising from increased interest by European investors in Oropa’s securities. At the time that Oropa undertook its last placement in mid-2003 to raise up to $2.5 million, European investors subscribed for shares and options to a value of $700,000. In April this year, Dr John Bristow, an eminent South African geoscientist with over 20 years experience in the South African diamond industry, resigned as a director of the Company to pursue his professional interests in Botswana and added workload as chief executive officer of Kalahari Diamond Limited. However, Dr Bristow will be available periodically to undertake future consultancy services to Oropa, if required.