EXPLORATION UPDATE

Glass Earth is one of the largest New Zealand-based gold exploration companies exploring a land position of over 17,000 square kilometres in the North and South Islands.

In the North Island, current exploration efforts are focused on the Hauraki and Mamaku Regions.

- Hauraki Region - Glass Earth occupies a significant ground position in this region around the Waihi/Martha Mine owned by Newmont Mining Corp. Newmont continues to earn into the Glass Earth permits via two Joint Ventures, with drilling continuing on the Goldwyn prospect.

- Mamaku Region - a new resistivity survey is about to commence at the Muirs Reef prospect which has encouraging signs of a major epithermal gold deposit.

In the South Island, exploration efforts are focused on the Otago Region for mesothermal "Macraes-style" gold targets and placer gold.

- Otago Region - As recently announced, Glass Earth is undertaking exploration work to farm-in to the Bendigo/Rise & Shine gold prospect and is also evaluating the potential for near term hard rock gold production at Ophir.

Placer Progress

Exploration expenditures for the quarter in the Otago Region of the South Island of New Zealand were focused on test work to improve confidence in placer gold mineralisation in the Ida Valley.

The purchase (in conjunction with a mining partner) of a 40 tonne floating Gold Recovery Unit and associated refurbishment work has been undertaken in anticipation of the granting of resource consents and other approvals to allow bulk testing to take place. Decisions on mining would follow. The Company considers that small scale mining could provide a sustainable cash flow to provide additional working capital and exploration funds.

Glass Earth's exploration portfolio is being progressed as Glass Earth maintains its objective to discover new large gold deposits in New Zealand.

Funds

Given the tighter operating conditions, the Company's working capital of $1.2 million as at 30 June 2009, together with cash from or work undertaken by contributing joint venturers, is now budgeted to carry the Company through into early 2010. Cash generated from placer mining (Ida Valley) or boutique hard rock mining (Ophir) would be additional to this.

FINANCIAL RESULTS

Glass Earth is an exploration company and therefore classified as being at the 'development stage', as it has no mining or other significant income.