October 11, 2010

Dear Shareholder

Welcome to our updated website. It has been some time since I had the opportunity to present to you what your company has been doing other than through the issuing of the company quarterly reports and some general ASX releases. I feel that the website gives me an opportunity to gather in one area the various releases we make throughout the year and enables you to get a very useful overview of what your company is doing.

By looking through the website material I believe you will see that we have come a long way in the recent years in stabilizing and developing your company into where it is in a position to move to greater strength not only as a gold explorer but also as a producer of quality construction materials.

It is in this latter area that our association with Global Contracting Pty Ltd (Global) will I believe be a determining moment in our development of the Nagambie Mine site. As we have mentioned in our ASX releases, Global is a small but well regarded company in the Victorian and Australian Construction Industry and its association with Nagambie brings operating expertise together with a reliable material supply. This in my opinion is a sound basis for future growth in this area.

In our innovative gold exploration practice of looking for small but easily mineable oxide gold within cost effective trucking distance of the Nagambie Mine. We have identified the Redcastle Goldfield as having excellent promise and we have taken steps to obtain access to the entire goldfield for our exploration purposes. I hope that in the year ahead as we look to move into our detailed drilling phase in this area that results will allow us to look to further development.

I would like to take this opportunity of firstly thanking you for your continued support and to assure you that we are all working towards making Nagambie a successful company.

Kind Regards

Colin Glazebrook
Chief Executive Officer
Nagambie Mining Limited