Annual exploration report Yam Creek/North Point Group MLNs 214, 341, 343, 349, 823-832, 858-863, 940, 1112, MCNs 46-47, 49-50, 624-625, 898-899, 4428, 4430, 4432, 4434 Year ending 31 December 2009

Abstract

The Yam Creek Group of tenements is one of the significant projects within Crocodile Gold Australia's portfolio. It is located approximately 150km SSE of Darwin. It comprises North Point, Princess Louise, Iron Blow and historical Yam Creek alluvial gold mining areas. The historic Yam Creek alluvial gold field was discovered in 1872. Gold mineralisation at North point and Princess Louise deposits occurs as quartz vein systems, hosted by structurally prepared sites within cyclic greywacke-mudstones of the Palaeoproterozoic Mount Bonnie Formation. Episodic gold production has been reported from underground as well processing of alluvial/elluvials cover material. The area has been the subject of modern gold exploration since the late 1970's. Exploration, post 1988 was managed by Northern Gold NL and its subsidiaries and Acacia Resources (AngloGold) subject to option agreement. During the reporting period a review of base metal mineralisation within Crocodile Gold Australia's port folio was undertaken which established the significance of Iron Blow gold and base metal deposit with further potential. In the same period, National Instrument 43-101 compliant resource estimate was prepared (3,174,876 tonnes grading 2.08 g/t gold, 100.9 g/t silver, 0.76% lead, 3.28% zinc and 0.19% copper). It contained gold resource of 210,000 ounces of gold. During the reporting year, a high resolution geophysical survey was also flown over the project area. The survey was conducted in collaboration with Thundelarra Exploration Pty Ltd/Element 92 Pty Ltd. The survey was flown over 250 metre line spacing. In the next reporting year, a program of drilling and sampling is proposed to expand the resource inventory base or search new areas of mineralisation within the Yam Creek Group of tenements. This will be supported by interpretation of high resolution geophysical survey obtained this year to select new targets.