Eclipse Uranium Project, EL 24625, EL 24636 and EL 24637, Annual report for the year ending 18 December 2006

Abstract

This report details the exploration activities carried out over Scimitar Resources Ltd (Scimitar) Eclipse Project in the Northern Territory, during the period 8 December 2005 to 18 December 2006. This work included research, data base compilation, field reconnaissance and aircore drilling within EL 24625, 24636 and 24637. The aircore drilling program conducted during early December 2006 comprised sixtyfour holes for 1,365 metres, targeting near surface calcrete hosted uranium mineralisation, similar to the adjacent New Well uranium deposit, held by Deep Yellow Ltd. The drilling targeted two large regional drainage systems, which are actively depositing uranium within the channels and around the margins of Lake Lewis. The initial phase of the drilling program returned generally low uranium values from three metre composite sampling. The remaining 2500 metres of the drilling program will be completed in early 2007.