Level 34, 50 Bridge Street Sydney 2000 Ph:- (02) 8216 0777 Fax:- (02) 8216 0788 April 30 2008 THIRD QUARTER ACTIVITIES REPORT – MARCH 2008 Australian Gold Investments Limited (ASX: AGV) presents the following report on activities for the three months ending 31 March 2008. Also included in this report are details of any significant subsequent events that have taken place in April 2008. This is the first Activities Report released by the Company since it listed on the Australian Stock Exchange on 14 January 2008. During December 2007, the Company raised $5 million via the issue of 25 million shares at a price of $0.20 per share with Cunningham Securities Pty Ltd acting as Lead Manager. AGV currently holds two principle gold exploration projects in Western Australia - the Broads Dam Gold Project near Kalgoorlie and the Pilbara Gold Project in the southwest Pilbara - and is actively seeking additional investment opportunities in the resources sector. Exploration Activities During the third quarter of 2008, Australian Gold Investments Limited undertook gold exploration on the Zuleika Shear Zone-hosted Broads Dam tenement package, and the Rocklea Dome-hosted Pilbara exploration licence area (Figure 1). The following is a discussion of the results of gold exploration work carried out by the Company during the reporting period. Broads Dam Gold Project – Zuleika Shear Zone The Broads Dam Gold Project area is located in the Eastern Goldfields Province of the Yilgarn Craton, Western Australia, approximately 40km north-west of Kalgoorlie. The project tenement package covers approximately 3,000 hectares of the highly prospective Zuleika Shear Zone, which is host to a number of world class gold deposits including the Kundana Deposit, 15km to the south-east. During the reporting period, Australian Gold Investments Limited undertook a re-interpretation of existing geophysical data over the Broads Dam tenement package, to better define the structural architecture of major NS and NE trending extensional faults that are interpreted to have developed in response to sinistral wrench fault tectonics along the Zuleika Shear Zone. Strike-slip transtension of Archaen metasediments and talc-carbonate to tremolite-chlorite metamorphosed ultramafics and metabasalts/metagabbros, which has generated gold-bearing syntectonic quartz vein deposits adjacent to the Zuleika Shear Zone, coincides with a number of gold anomalies within the Company’s tenements (Figure 2). Furthermore, large-scale structural linears conformable with regional drainage may also coincide with significant zones of extension and gold prospectivity (Figure 3). The

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geological environment at Broads Dam is also known to host supergene gold mineralisation developed during deep weathering and laterisation, as well as palaeo-placer deposition within structurally controlled Tertiary palaeochannels, which transect the Company’s tenements. A substantial amount of geophysical data over the Broads Dam tenements is presently being reprocessed and stitched together for the Company, with the aim of remapping the geology, particularly beneath areas of transported alluvium, which are thought to be obscuring structurally promising gold-bearing mineralised targets. An updated structural model developed by the Company over the last 4 months, derived from a re-interpretation of the regional drainage and available geophysics, is also being used to define specific areas for future ground magnetic (to further refine structure) and IP (to detect sulphide mineralised gold hosts) surveys. The new dataset will then be used to locate favourable sites for drilling across the tenement package as-a-whole, and within the presently defined Alpha, Beta, Gamma and Delta group prospects. However, of particular interest and focus, will be an interpreted geophysical anomaly, displaying geological characteristics that may be indicative of a Kundana-type gold depositional system, that may coincide with an interpreted major regional-scale NS extensional structure located at the southern end of the tenement package. AGV announced on 16 January 2008 that the Company had been approached by a major international gold mining company in relation to a potential joint venture involving the Broads Dam tenements held by AGV.

During the quarter, the AGV Board were in discussions with that organization as well as other exploration companies with a view to securing the best possible commercial terms for AGV in relation to a potential joint venture. The aim of the AGV Board has been to ensure both the short and long term preservation of shareholder equity and to maximise the potential upside in shareholder value that can be derived from what the AGV Board believes to be a highly prospective project. Pilbara Gold Project - Rocklea Dome The Pilbara Gold Project is located in the under-explored but highly prospective Pilbara Craton, which is host to the world class Telfer Gold Mine. The project area is covered by Exploration Licence E47/1153 over the northern half of the Rocklea Dome and encompasses an area of approximately 200km2. During the reporting period, Australian Gold Investments Limited undertook detailed satellite image analysis of the boundary between Hamersley Basin sequence metasediments and greenstone assemblage rocks, where they have been intruded by the metamorphosed monzo-granitic complex of the Rocklea Dome, on the northern side of E47/1153 (Figures 4 & 5). The analysis has identified a number of significant structural features in the vicinity of known gold mineralisation, that appear to have been influenced by major extensional structures developed through the granitic intrusive complex of the Rocklea Dome, and which have also transected Hamersley Basin sequence rocks across the intrusion boundary. A number of these extensional structures within the granitic intrusion also appear to coincide with post-intrusion dolerite dykes, suggesting possible basic magma-related mineralising fluid sources for the historic gold deposits within the licence area. Historic gold mineralisation located on the northern side of the Rocklea Dome, also appears to coincide with a major angular unconformity and shear zone, separating Fortescue Group rocks from older quartzofeldspathic schists of the Rocklea Dome complex.

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The structural analysis of the northern side of the Rocklea Dome, carried out by the Company during the reporting period, will be used to further refine gold exploration targets similar to those identified in existing historic workings, by encompassing the following additional geo-formational criteria:-

1. Contact-zone-related mineralization, where gold-bearing quartz-dominated hydrothermal fluids have migrated along the identified WNW trending angular unconformity and shear zone, and

2. Lithology-controlled mineralization, where hydrothermal fluids may have precipitated gold and quartz under appropriate Eh-pH conditions, in specific ENE striking meta-sedimentary units.

Confirmation of the existence of these prospective geological settings on E47/1153, opens-up the potential for identifying gold mineralised targets along the entire length of the unconformity adjacent to the northern boundary of the Rocklea Dome, over a strike length of at least 8 km. Moreover, the future application of high-resolution hyperspectral mapping across identified structural zones, to produce mineral maps defining specific gold-associated mesothermal-related alteration signatures, is expected to further enhance the future drill hole target selection process going forward. Subsequent Events On 17 April 2008, AGV announced that the Company through its wholly owned subsidiary Broads Dam Gold Holdings Pty Ltd, which holds the 100% beneficial interest in the Broads Dam Project, had entered into a farm in heads of agreement (Farm-in HOA) with the ASX listed ABM Resources NL (ASX: ABU). The Farm-in HOA covers the exploration and development of 3 Prospecting Licences (PL’s 16/2386 – 16/2388) which are all located within the Broads Dam project owned by AGV in Western Australia. The Prospecting Licences are yet to be granted, being reversion applications over part of Mining Lease applications 16/295-297 and the Farm in HOA will only come into effect once the Broads Dam tenements have been granted. Under the Farm-in HOA, ABU has a right to earn up to a 40% joint venture interest in the 3 Prospecting Licences in four stages: • a 10% interest upon ABU incurring at least $400,000 drilling on exploration within

the tenement area within 12 months of the grant of the Tenements;

• a 10% interest upon ABU incurring at least a further $500,000 in exploration and development of the Prospecting Licences within 24 months of the grant of the Tenements;

• a 10% interest upon ABU incurring at least a further $1,000,000 in exploration and

development of the Prospecting Licences within 36 months of the grant of the Tenements; and

• ABU may earn a further undivided 10% Joint Venture interest by sole funding all

approved Joint Venture expenditure in relation to the Tenements from the Third Interest Date up until the date a bankable feasibility study is completed by ABU in relation to a Tenement (BFS Date) provided that ABU’s right expires if a bankable feasibility study (BFS) is not completed by the earlier of six (6) years from the Commencement Date and a date agreed by the parties

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ABU is the manager of its sole funding period, with appropriate consultation and planning with AGV. A formal joint venture agreement is to be negotiated upon ABU earning its first 10% joint venture interest. Commenting on the Farm-in HOA, AGV’s Executive Chairperson, Pnina Feldman, said, “I am delighted that we have been able to reach such a mutually beneficial agreement with ABM Resources NL and the AGV Board looks forward to working with ABM to ensure we maximize what we believe is an outstanding group of prospecting licences.” Furthermore, the AGV Board as-a-whole is particularly pleased that the current agreement leaves AGV with sufficient equity in the project to enable the Company to, in the future, deal on favorable terms with any and all interested parties, should a world class gold project be developed on the tenement area. Board Changes On 5 March 2008, Executive Director Dr. Simon Pecover announced his resignation from the AGV Board. The decision was made to ensure that Simon could focus all his energies on behalf of AGV solely in his role as Head Geologist of Exploration and Mining for AGV. On 18 April 2008 the Company announced that David Austin had been appointed as an Alternative Director to AGV’s CEO Sholom Feldman for a 3 month period. David is a solicitor with 30 years experience in the legal and mining sectors. The AGV Board welcomes David. Corporate Structure The Company finished the March quarter with cash reserves of approximately $3.8 million and fully paid ordinary shares on issue totaling 61,791,763, with approximately 29.3 million shares being quoted. The Company has 50,291,763 unlisted options on issue with an expiry date of 31 December 2012 and an exercise price of $0.20 as well as 5,000,000 unlisted options on issue with an expiry date of 31 December 2012 and an exercise price of $0.30. If shareholders have any questions regarding this Quarterly Report they should contact the following Company officers:- Pnina Feldman, Executive Chairperson Australian Gold Investments Limited Phone:- (02) 8216 0777 Fax:- (02) 8216 0788 Mobile:- 0414613770 or Sholom Feldman, CEO Australian Gold Investments Limited Phone:- (02) 8216 0777 Mobile:- 0411744411

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Hooper Complex

Rudall Complex

Musgrave Complex

GascoyneComplex

NorthamptonComplex

Canning Basin

Eucla Basin

Perth Basin

BirrinduduBasin

YeneenaBasin

Hamersley Basin

AmadeusBasin

Officer Basin

Ashburton Basin

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Figure 1. Location of Australian Gold Investments Limited gold projects in the Yilgarn and Pilbara Cratons, Western Australia.

BROADS DAM GOLD PROJECT

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Interpreted major extensionalstructures

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anomaly

BLUE FUNNEL OPEN PIT48,227 oz - produced 1985-1993

150,000t @ 4.5g/t Augeological resource below pit floor

BROADS DAM &BROADS DAM WEST OPEN PITS89,730 oz - recovered grade 3.9g/t Au

AGM inferred resource695,000t @ 3.6 g/t Au

Em000 523Em000 023Em000 513

6 615 000mN

6 610 000mN

Figure 2. Broads Dam Gold Project – gold targets relative to major structural features.

Zuleika Shear Zone

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6600000mN

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Figure 3. Major linear structures defined by regional drainage in the vicinity of AustralianGold Investments Limited “Broads Dam” tenement package. Of particular interest are structures A&D which cross-cut the Zuleika Shear Zone parallel to known gold-bearing transtensional faults; with A cross-cutting the tenement package close to the Blue Funnel Gold Deposit and D cross-cutting the in the vicinity of an interpreted geophysical anomaly, with characteristics that may be indicative of a Kundana-type gold depositional system. Map modified after the Kalgoorlie 1:250,000 Geological Sheet.

tenement package

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550 000mE540 000mE530 000mE

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Figure 4. Pilbara Gold Project – Geology of the Rocklea Dome showing gold prospective area in red rectangle (see also Figure 5). .

Metadolerite sillsLayered metapyroxenite/metagabbro sillsBunjinah Formation: metabasalt flows

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Pyradie Formation: metamorphosed basaltBoongal Formation: metabasaltHardy Formation: pelite, metasandstoneMount Roe Basalt: metamorphosed basalt

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Metadolerite dykesMetamorphosed biotite monzograniteQuartzofeldspathic schistMetabasalt

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Woongarra RhyoliteWeeli Wolli Formation: banded iron formationBrockman Iron Formation: banded iron formationMt McRae Shale and Mt Sylvia Formation

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Figure 5. Satellite image of the northern Rocklea Dome showing the angular unconformity(blue) between the WNW striking meta-sedimentary rocks of the Hamersley Group (red) and the older ENE striking quartzofeldspathic schists (red) of the Rocklea Dome core. The white star indicates the position of the historic gold workings on the unconformity. Faults are highlighted in yellow. Image modified after Google Earth and DigitalGlobe 2008.

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