Combined annual exploration report - Year 1 EL 3336 and EL 3338, 20 January 2005 to 19 January 2006

Abstract

This report details exploration activity for diamond bearing kimberlite intrusives carried out by North Australian Diamonds Limited (NADL) over Exploration Lease's EL 3336 and EL 3338 for the period 20th January 2005 to 19th January 2006. During part of the reporting period NADL was registered with Australian Securities and Investment Commission (ASIC) as Striker Resources NL. The company name was changed to North Australian Diamonds Limited on 23rd August 2005. The tenements have been granted and are currently held by De Beers Australia Exploration Pty Ltd (DBAE). In January 2004 Striker Resources entered into a 'Letter Agreement' with DBAE with respect to acquiring a 100% interest in an area of 13,500 km2, representing the Arnhem Land Diamond Project area in the Northern Territory. This area includes EL 3336 and EL 3338. The agreement sees DBAE remaining as the tenement holder with NADL (Striker) functioning as the operator. Although granted, access to the tenements is not yet permitted until work clearance surveys have been completed, which the NLC is required to oversee. NADL is currently waiting for the NLC to commence the clearance survey. No timeline estimate has been given as to when the survey is likely to commence. Due to the above, no exploration activities were undertaken.