Action Minerals Inc.

Initially incorporated as Arkona Resources Inc. on March 27, 1980, the company changed its name to Action Minerals Inc. on August 11, 2004, after consolidating its shares on a one new for three old basis. The company is a junior exploration mining organization with properties primarily in British Columbia and northern Nevada in the United States.

Trident Copper Project Properties

Action currently has more than 25,000 hectares under option in the Trident Copper Project, Liard Mining Division located 250 kilometres northwest of Fort Nelson, B.C. Although management believes the outlook for primary vein mineralization is good, there is sufficient evidence to merit a detailed exploration program to test the iron oxide-coppergold (IOCG) model. Trace element geochemistry and the presence of IOCG and cobalt breccias suggest the occurrence of large copper and gold deposits. The Trident Copper properties include the Ram, Yedhe Mountain and, Nelson sites as well as the Neil joint venture.

During July 2005, the company entered into an option agreement with an arm’s-length vendor, allowing Action to earn a 100% interest in Trident Copper’s Ram property. The company is required to pay $50,000, and over the next six years will have to perform exploration and development work totaling $3 million and issue an aggregate of 7.2 million common shares. To date, Action has not made any payments on this property. The Ram site is located in the historic Churchill Copper District and consists of 48 contiguous claims, covering an area of over 19,000 hectares. The Churchill district includes the Magnum Copper Mine, which produced over 14,600 tons of copper from roughly 500,000 tons milled from 1970 to 1975.

In order to earn its 100% interest in the Yedhe property, Action paid $20,000 and issued 400,000 common shares to an arm’s length vendor. The Yedhe site consists of a single 15-unit claim covering an area of roughly 4,880 hectares.

During December 2005, the company entered into an option agreement to earn a 100% interest in the Nelson property, which consists of a single, five-unit claim covering an area of roughly 1,800 hectares. Action has now paid $10,000 and issued 500,000 common shares to the vendor and currently maintains full ownership in the property.

Trident Copper Project - Neil Joint Venture

During July 2005, the company entered into a joint venture with Aries Resource Corp. (AES:TSX-V) for the Neil and Talus sites, which was later amended to include the Sox property. Under the terms of the agreement, Action can earn a 50% interest in all three properties if it pays $125,000, issues 2.5 million common shares and commits to $3 million in exploration expenditures over the next three years. The Neil prospect contains 10 mineralized quartz carbonate veins which have been explored by several trenches and eight diamond drill holes, but according to management is still considered virtually unexplored. The Neil vein has been traced over a strike length of approximately 1,200 metres and a vertical extent of roughly 580 metres. During 1970, a geologist, using a cut-off grade of 2.5% copper, calculated a historical reserve of 3.7 million short tons. The reserve was recalculated during 1990 confirming the aforementioned tonnage. All of these estimations were based on information accumulated above the 1,500 metre level however, the mineralization can be traced at least another 760 metres deeper. Management cautions that this reserve is considered historical and does not meet National Instrument 43-101 standards and should not be relied upon.

The joint venture’s Talus property was tested by 15 trenches in 1971 and the samples ranged from 13.8% copper over 0.16 metre to 14.8% copper over 1.3 metres. Copper values range from 1.07% to 15.6%. In addition, the Sox property contains plus or minus 10 vein systems ranging from one to three metres wide. Geologists have completed geological mapping, rock sampling, trenching, diamond drilling and geophysical surveys of the site’s John and Janet veins. The John vein assayed roughly 5.6% copper over 2.5 metres and the Janet vein assayed about 4.6% copper over 1 metre.

Santa Rosa Molybdenum-Gold Project

The Santa Rosa project consists of two adjacent claim groups in Humbolt County in northern Nevada, namely the Cold Creek and Cold Spring properties. During March 2005, the company entered into an option agreement with an arm’s-length vendor to earn a 100% interest in the Cold Creek property, which consists of a single 24-unit claim covering 207 hectares. Action is required to pay $270,000 and will have to issue 400,000 common shares to the vendor of the agreement in order to earn a 100% interest in the site. Furthermore, the company must to commit to a minimum of $900,000 in exploration expenses and issue up to 4.5 million common shares over a five year period. During September 2005, Action entered into an agreement for the Cold Springs property, which consists of 58 neighbouring claims that cover an area of 480 hectares. The company can earn a 100% interest in Cold Springs on the condition that it pays $15,000 and issues 500,000 common shares to the vendor.

Other Projects

Action also has option agreements to earn 100% interests in two adjacent sites, the Merry and Williams properties located in the Lillooet, B.C. Mining Division, if cash requirements, issuance of common stocks and further commitments are met over three year terms. The company also owns a 100% interest in eight crown granted claims in Whitehorse, Yukon. High grade silver assays discovered in the 1980s suggest that there may be excellent potential for other precious metal systems to be uncovered.