Water exploration has been focused on the known aquifer within  69/12 that is located approximately 100Km South West of Wingellina.  Drilling has intercepted a significant aquifer at approximately 140m  below surface, with drilling unable to progress deeper than 230m  due to substantial water pressure from within the aquifer. Data from  historical oil exploration (Vines#1 hole) and hydrological modelling  suggests that the aquifer extends to 300m below surface. Further  drilling and modelling is continuing. Metals X held encouraging discussions with the Northern Territory  and South Australian authorities relating to the use of rail and  port infrastructure as suitable options for the project during the  year. Representatives from both states have expressed interest in  supporting use of road, rail and port networks, and discussions to  finalise transport options will be undertaken in the ensuing year. WINGELLINA FINANCING AND DEVELOPMENT The Company has significantly advanced the Wingellina Project and  is now reviewing options for finance and development. The Company  has held discussions with potential equity participants and financiers  with a focus on those international entities that are capable of  providing both technical expertise and funding.  During the year the Company announced that it had signed an  Agreement with China’s largest nickel producer Jinchuan Group  Limited (“Jinchuan”) to sell to Jinchuan a 20% direct interest in  the CMP as a part of the projects advancement towards future  production. Under the terms of the agreement the Company will selectively  buy-back Jinchuan’s 12.89% shareholding (176 million ordinary fully  paid shares) in the Company in exchange for the 20% direct interest  in the CMP. The transaction is subject to a number of conditions  precedent including Metals X shareholder approval, Jinchuan board  approval, completion of due diligence and Australian federal and state  government approvals. Both parties are working to complete the  transaction in the near future. On completion the parties will form an  unincorporated Joint Venture (“JV”) over the CMP, with the Company  having an 80% interest and Jinchuan having a 20%. Metals X will  retain management of the project.  The Agreement with Jinchuan is an important and significant first  step in bringing together a consortium to advance the project to  production and the company is confident that other partners will  commit to the project in the near future. 08  OPERATIONAL REVIEW