Annual report for EL 24178, Supplejack Project, 10 February 2006 to 9 February 2007

Abstract

This report describes the work undertaken by Washington Resources Limited (WRL) and Polaris Metals NL/Northern Uranium Limited in assessing the granted exploration licence, EL 24178, located 600 km northwest of Alice Springs In November 2005, Polaris Metals and Washington Resources signed a Letter of Intent and Heads of Agreement, whereby the rights to uranium in their respective tenements would be vested in a single entity in which Washington and Polaris would hold equal interests, and which is initially be managed by Polaris. These tenements included the Supplejack Project EL 24178. On 2nd August the Uranium Tenements and Uranium Rights Assignment Deed was signed by Polaris Metals, Washington Resources and Northern Uranium, whereby certain uranium rights and uranium tenements of Washington Resources and Polaris Metals would be vested into a new dedicated uranium exploration company, Northern Uranium in exchange for shares in Northern Uranium. Subsequently, Northern Uranium Limited was listed on the Australian Stock Exchange having completed an Initial Public Offer and raising $4 million for the purposes of exploring and developing uranium deposits on tenements which include the Tanami-Granites Project. Northern Uranium Limited have the uranium rights and are the current joint operators, together with Washington Resources, of the Tanami-Granites Project. Exploration carried out by Polaris/Northern Uranium comprised a thorough and detailed compilation, integration and review of all available geophysical, geological and geochemical data, in the context of an unconformity-style uranium target. No onground exploration work was conducted on the tenements during the reporting period. It was concluded that the geological setting of the Birrindudu Basin area has strong similarities with that of the Athabasca Basin in Canada and the Alligator Rivers region in the Northern Territory, which both host high-grade unconformity-style uranium mineralisation. Several exploration targets have been defined for further work, and a detailed exploration program for 2007 has been defined.