Synergy Metals Ltd

23 April 2008 ABN 59 005 482 904

ASX Code: SML

Coffey Mining Review; Issued capital:
615M ordinary shares
Exploration and Development Pipeline
Directors:
The Directors of Synergy Metals Ltd (Synergy) are pleased to advise Michael Sadler,
on two major developments: Chairman
Peter Malkin,
1. Coffey Mining Review Operations Director
Kit Chye,
The full Synergy Board recently conducted one of its regular reviews Non-Executive Director
with Coffey Mining Pty Ltd and the whole Synergy exploration and Paul Pupazzoni,
development team. Non-Executive Director
Freddie Heng,
This was a two day session held on site at Glen Wills and included Non-Executive Director
inspections at Glen Wills South of the underground refurbishment
work of the number 5 level; the ongoing construction of the crosscuts Senior Management:
from that adit; the surface exploration drilling at Glen Wills and Peter Malkin,
Sunnyside; and a review of the very encouraging Merrimac soil Operations Director
sampling results. Paul Pupazzoni,
Company Secretary
The overall conclusion was that Synergy’s exploration and
development program is on track. Contact:
152 Macleod Street
During the past year, Synergy has made considerable progress in Bairnsdale Victoria 3875
both understanding the geology and resource potential of the Glen Tel: (+61 3) 5152 5011
Wills and Sunnyside projects and in developing the infrastructure to Fax: (+61 3) 5152 5705
support the expanding exploration activities. The successful $7 Email:
million placement and rights issue completed last year ensures that info@synergymetals.com.au
financial resources are now in place to enable the company to Web:
significantly boost its exploration activities at various prospects. www.synergymetals.com.au

Coffey Mining’s review has been invaluable in assisting the company to program forward
activities, to define near term and long term objectives and in understanding key issues
which will need to be addressed as exploration activities increase. Coffey has also provided
independent guidance for the upgrading of resources and systems to manage the increased
activities. In particular, Synergy will be shortly appointing a mining engineer to join the
exploration and development team.

Synergy’s Chairman, Mr Michael Sadler said, “We are very pleased with the results of the
latest independent review by Coffey Mining of Synergy’s successful and expanding
exploration and development program.”

Mr Sadler said, “Coffey Mining have again supported the exploration and development
program being developed by the Synergy Board and suggested some methods to accelerate
our exploration efforts.”

He said “The visible gold reported by Synergy on 15 April highlights the enormous
exploration opportunities Synergy Metals has with its strategic land holdings.”
2. Exploration and Development Pipeline
The Synergy group controls a strategic parcel of granted exploration licences and
applications in eastern Victoria covering some 2100 km2. Based on historical workings and
modern geological interpretation the tenements are highly prospective for multi-commodity
potential.

The latest review with Coffey Mining has confirmed Synergy’s exploration strategy including
the utilisation of the intrusion-related gold system model. Coffey Mining have also actively
encouraged Synergy to expand the company’s exploration focus to also target other
minerals which may be found on Synergy’s tenements such as gold, silver, tin, copper,
zinc, lead, tungsten and molybdenum.

During 2007, the company’s exploration objectives were to prove up a northerly extension of
the Glen Wills deposit, drill at Sunnyside and to test the veracity of the high value soil
sampling geochemical exploration results previously achieved at Merrimac. As a result of
completing those activities, the company has been able to achieve a better understanding of
the resource and has identified additional targets for more intensive activity. Accordingly,
exploration and development activity is now focussed on Glen Wills South where drilling will
be undertaken from inside the old Number 5 adit and at Sunnyside and Merrimac where
excellent results are being achieved.

The major projects that the Synergy Board and exploration and development team are now
working on are as follows:

Glen Wills South – gold development

The first part of the number 5 adit has recently been refurbished and is now being prepared
for the commencement of underground drilling. A resource drill out of about 5000 metres
of drilling has commenced (with the initial drilling from surface) to achieve an inferred mineral
resource for the southern part of the Glen Wills deposit with a target completion by
December 2008.

Synergy is now also developing a scoping study program which will be conducted in
conjunction with Coffey Mining and is expected to be completed by March 2009 after the
initial resource drill out is completed for Glen Wills South.

A second resource drill out will also be considered for the Glen Wills Central area to the
north of Glen Wills South.

Sunnyside – gold exploration

The company has reported high grade intersections and visible gold at Sunnyside from
recent drilling. The on-going drilling program is expected to continue until at least December
2008 to identify and delineate additional high-grade structures, such as the new structure
announced on 15 April 2008.

Merrimac – gold exploration

Synergy plans to commence a costeaning (trenching) program during the June 2008
quarter in the highly promising areas identified from soil sampling. The costeans will allow
detailed structural investigations and sampling to occur below the soil surface profile.

The results from the costeaning program will allow the exploration team to design the most
appropriate follow-up program which is likely to incorporate a program of reverse circulation
drilling.

In addition, the successful regional geochemical soil sampling program will again be
extended into the northern continuation of the Merrimac system during the coming months.
Regional exploration targets
The Synergy exploration and development team is being expanded to allow some initial
desktop studies and preliminary work plans to be developed for the following areas of
interest and their target minerals:

Area or regional target Target minerals

• Granite Flat • Gold and copper
• Benambra style deposits • Copper and zinc
• Glen Wills • Gold and tin
• Bingo Munjie • Copper and molybdenum
• Mt Murphy • Tungsten
• Comstock/Forsythes • Silver
• Omeo • Gold
• Mammoth Lode style deposits • Copper, lead, zinc, molybdenum, tin,
gold and silver.

The attached detailed geological map shows the location of some of Synergy’s regional
targets.

Michael Sadler
Chairman

The geological information contained within this report was compiled by Mr Peter de Vries, a consulting geologist, on
behalf of Synergy Metals Ltd. Mr de Vries is a member of the Australasian Institute of Mining and Metallurgy, and is
competent and experienced in the activity being undertaken, and consents to the publishing of the information in this report
in the form and context in which it appears.

For further information, please contact:

Michael Sadler Rod North - Executive Director
Chairman Bourse Communications Pty Ltd
Synergy Metals Limited Tel: + 61 3 9510 8309
Tel: + 61 3 5152 5011 Mobile: 0408 670 706
Email: rod@boursecommunications.com.au
About Synergy Metals Ltd
Using modern geological exploration techniques, Synergy Metals has identified a large
mineralised zone in the Glen Wills and Sunnyside area in East Gippsland, Victoria. Gold,
silver and tin were previously mined in the region. Of the numerous mines established in the
region, the two most famous were the Yellow Girl and the Maude goldmines. The company
is fortunate to be able to draw on extensive data from previous workings and past
exploration. Synergy’s granted tenements and applications cover an area of approximately
2100km2 and abut the Benambra base metals mine.

Gold Exploration and Development Plans

Synergy’s strategy is to prove the viability of the Glen Wills and Sunnyside gold project area
and since 2004 has conducted more than 17,000 metres of diamond core drilling at the site.
Coffey Mining Pty Ltd completed an independent review and as reported on 19 April 2007,
confirmed the mineral exploration potential for part of the area to be in the range from
340,000 to 720,000 ounces of gold.

Regional Exploration Targets

Some of Synergy’s granted tenements and applications in the East Gippsland region have
historically hosted many minerals such as gold, silver, tin, copper, zinc, lead, tungsten and
molybdenum. Synergy’s strategy is to conduct some preliminary geological work on its large
land holdings.

Glen Wills and Sunnyside Historical Background

Extensive gold mining occurred in the Glen Wills / Sunnyside area north of Omeo from the
1890s until after the First World War. Although the scale of mining was considerably
decreased after the war, it continued until the 1960s. The area was very productive with
high grades at relatively shallow depth.

The first mines were established at Glen Wills in 1888 and 1889 with the most intensive
development occurring from about 1893. Most of the old mines were relatively shallow at
barely 100 metres depth. Of the numerous workings at the Glen Wills and Sunnyside
goldfields, the two most famous were at Glen Wills: the Yellow Girl which was opened in
1892 and the Maude in 1893. Both were rich mines and produced gold until 1916 when
operations were wound down due to the First World War.

However, both mines experienced a renaissance in 1931 when the Maude and Yellow Girl
Mining Company was formed and mining continued there until about 1952. Overall, between
1891 and the 1960s, the Glen Wills goldfield produced more than 235,000 oz of gold at a
grade in excess of 15 g/t.

JORC Code Compliance

In accordance with the ASX listing rules, the Directors note that the estimates of mineral
exploration potential shown above are based on tonnes and grades which are conceptual in
nature and do not represent any form of mineral resource estimate since at this stage there
has been insufficient exploration work done on the mineral exploration potential to be able to
define a mineral resource compliant with the JORC Code guidelines and it is uncertain
whether further exploration work will result in the determination of such a mineral resource.
 Synergy Metals Limited tenements – Regional targets
and neighbouring deposits in the vicinity

Mammoth Lode
Granite Flat  Au‐Cu Cu, Pb, Zn, Mo, Sn, Au, Ag

Mt. Murphy  W

EL4744

Merrimac  Au

EL3916

Glen Wills /
Sunnyside  Au, Sn

ELA4818

Benambra  Cu‐Zn
ELA4717
Bingo Munjie  Cu‐Mo

Omeo  Au

Comstock/Forsythes  Ag
SML ELs (3916 & 4744) and
ELAs (4717 & 4818) are
shown in dark blue outline. Cassilis  Au
Geology from GeoVic, 2008.