Exploration report on EL 24283 Ringwood, for the period 1 January 2007 to 6 January 2008

Abstract

Raxile Pty. Ltd. is the holder of Exploration Licence 24283 at Ringwood in the Alice Springs area of the Northern Territory. The Licence was granted on the 7th January 2005 and has been reduced progressively to its current area of 116 KM(2). The Company has experienced extreme difficulty in obtaining a drill contractor with a suitable rig and one willing to drill in the Alice Springs area. As a consequence we have not been able to commence the drilling program or to meet the expenditure requirements on the Licence. Our exploration program for the area is based on the remarkable similarity in the tectonic setting and stratigraphic framework between the Amadeus Basin in the Northern Territory and the Witwatersrand Basin of South Africa. Our particular interest is focused on the unconformity within the Precambrian sequence at the top of the Bitter Springs Formation within the Phillipson Thrust Sheet. The unconformity rises from the top of the Bitter Springs Formation in the north west through to the base of the Pertataka Formation in the south east. This unconformity does not outcrop anywhere within our licence areas and we have selected seven drill sites in locations where the unconformity is shallowest and closest to a major upfaulted position. The holes are all sited close to existing roads and will be diamond cored throughout which will allow for detailed sampling and provide maximum evidence of possible mineralization on the unconformity or any other potential horizon within the sequence. Estimated depths are Hole E 500 metres, Hole F 500 metres, and Hole G 500 metres. Our program is based solely on drilling and the Company has experienced extreme difficulty in obtaining a drill contractor with a suitable rig and one willing to drill in the Alice Springs area. As a consequence we have not been able to commence the drilling program or to meet the expenditure requirements on the Licence for calendar 2007. We should be able to commence drilling during 2008.