Combined annual report for EL 22924 and EL 24454 Huckitta 26 May 2007 to 25 May 2008

Abstract

The Huckitta project is situated approximately 200 kilometres northeast of Alice Springs in the Northern Arunta block of the North Australian Craton. It consists now of EL24454 Pulpit and EL22924 Delny. The Huckitta project previously consisted of EL23636 Yam Creek, EL23637 Mt Baldwin and EL24454 Pulpit. EL23637 was transferred from Tanami Exploration NL (TENL) to Deep Yellow Limited (DYL) on 23 April 2007. EL23636 was transferred from TENL to DYL on 2 August 2007. On 13 April 2007, EL24454 Pulpit along with EL22924 Delny, was incorporated into a new joint venture arrangement between TENL and Mithril Resources Limited (Mithril). Mithril focused their activities on exploration for nickel. All tenements are granted to Tanami Exploration NL (TENL), a wholly owned subsidiary of Tanami Gold NL (TGNL), a publicly listed company. This report describes exploration carried out by Mithril from 26 May 2007 to 25 May 2008. Exploration during the year included a review of historical exploration, an airborne VTEM survey, geological prospecting, reconnaissance, re-sampling of historic core sections and surface sampling. The review highlighted the fact that no systematic exploration for nickel or other base metals had been completed. The VTEM magnetic survey generated 21 targets. A field inspection of the targets revealed that most are under a thin transported sediment cover so the source of the magnetic anomaly remained untested. The ground search for the historical diamond core drill holes failed to locate them. The results of the 1/4 core samples returned confirmed the correct order of magnitude of the historical assay values. Best result was 7.4ppm Ni from what seemed to be hole DDNT-12-1 at a depth of 248ft. The results of the rock chips samples returned slightly anomalous nickel and chromium values peaking at 339ppm and 2610ppm respectively in the vicinity of the Middle Dam Ultramafic. The results of the lag samples have not been received in time to be included in this report.