Annual report for EL 10360 and EL 10401

Abstract

The Annual Reports in respect of the above licences for the year ending 5 December 2006 are due to be lodged by 5 January 2007. We ask that this letter be accepted as a nil report in respect of these tenements. No field work was conducted during the reporting period by the previous holder, Tanami Exploration NL (TENL), or by Deep Yellow Ltd (DYL). Exploration Licences 10360 and 10401 are included in a number of Exploration Licences acquired by DYL from TENL with the transfer being registered on 5 December 2006. Both tenements are the subject of a Deed of Covenant dated 20 May 2003 incorporating them into the Harts Range ILUA between TENL and the Central Land Council (CLC). The ILUA was registered by the National Native Title Tribunal on 5 September 2002. However, the ILUA only relates to exploration for gold and therefore required Tanami or its assignee, DYL, to present a new exploration proposal to cover uranium exploration prior to conducting any programmes. A proposal for uranium exploration was forwarded to the CLC on 30 October 2006. Approval has not yet been received. Whilst DYL is keen to conduct its exploration programme, given the timing it was impossible to conduct an exploration programme prior to the end of the anniversary year.