Fourth and final annual report for EL 10103 'Warramana', EL 10317 'Yalco' and EL 10329 'Yalco 1', for the period ending 2 June 2006

Abstract

This report is the fourth and final exploration report for exploration licences EL 10103 Warramana, EL 10317 Yalco and EL 10329 Yalco 1, located within the McArthur Basin of northern Australia, approximately 25 km northwest of Borroloola, on the Bauhinia Downs and Mt Young 1:250,000 map sheets, Northern Territory. North Mining Limited (North) and Anglo American Exploration (AAE) signed the Batten Trough Farm In and Joint Venture Agreement that includes EL 10103, EL 10317 and EL 10329, on 29th September 2003. AAE withdrew from the joint venture and handed the tenements back to North on 24th March 2006. North relinquished EL 10103, EL 10317 and EL 10329 on 2nd June 2006. Exploration completed for the year ending 2nd June 2006 consisted of the following: a review of all available exploration data by Rio Tinto Exploration Pty Limited (RTE) that failed to identify any new exploration targets worthy of additional follow up work and a final Rehabilitation Report on rehabilitation activities carried out by RTE in 2002. Four years of exploration activities by North/RTE and AAE did not identify any significant Zn-Pb-Ag mineralisation within EL 10103, EL 10317 and EL 10329. No further rehabilitation is required by North in respect of activities undertaken within the tenements. There are no remaining exploration targets for large Zn-Pb-Ag deposits within EL 10103, EL 10317 and EL 10329 that provide sufficient encouragement for further exploration expenditure by RTE. Consequently, the tenements were relinquished by North.