Annual report on EL 25261 Ngalia project, for the period 7 February 2007 to 7 February 2008

Abstract

No new in-field exploration activities were undertaken during the reporting period (year 1 of tenure). The primary activities undertaken were collating all existing open file geological, geochemical and geophysical data for EL 25261 and considering a forward exploration plan for the licence. Early in the first year of tenure, a change of management occurred at Gawler Resources Limited ('Gawler') (of which Globe Resources Pty Ltd ('Globe') is a wholly-owned subsidiary) as a result of the then Board agreeing to expand the focus of the company to petroleum development and production. On 23 March 2007 a merger agreement was announced between Gawler and Elixir Petroleum Ltd ('Elixir'). The merger received court approval on 25 October 2007. During this period of time, the merger process required that the target company (being Gawler) not alter its capital structure. Following the completion of the merger between Gawler and Elixir, Elixir is now the parent, and holds a 100% interest in, the licencee, Globe. With the ratification of the merger in mid-November 2007, the group is now in a position to commence a comprehensive exploration program in the second year of tenure.