The perception of New Zealand as an exploration destination
has improved compared with other countries. There has been a realisation that
New Zealand's potential is greater than previously thought. Other countries are
not as attractive as before, and explorers are looking at alternatives that are
geologically prospective and politically stable.

New Zealand is regarded as geologically prospective,
especially for gold, with potential for world class deposits. It is also
prospective for other metals, coal and industrial minerals. New Zealand is
politically stable, and has an economy that is attractive to overseas investors.
It is one of the least corrupt countries in the world, which overseas companies
see as providing a high degree of certainty for investment.

New Zealand has good
opportunities for investment in gold exploration at present. Otago has been the
focus for new companies and is the favoured exploration location. Otago is
regarded as very prospective, and hosts New Zealand's largest gold deposit at
Macraes. There is potential for other similar deposits elsewhere in Otago.

The mineral industry previously had an
excessively pessimistic view of New Zealand, which has resulted in little new
investment in New Zealand for some years. Previous pessimism is turning to
optimism, and there is increasing interest in New Zealand as an exploration
destination by overseas explorers.