Annual report on EL 25261 Ngalia project, for the period 7 February 2007 to 7 February 2009

Abstract

No new in-field exploration activities were undertaken during the reporting period (year 2 of tenure). Following the compilation of all open file data and the consideration of a forward exploration program for the licence. The primary activities undertaken were marketing the licence to adjoining landholders and industry participants in order to find a Joint Venture partner to assist with funding of the ongoing exploration of the licence. Globe appointed an Investment Bank and engaged several interested parties however as the financial crisis deepened the interested parties advised that they wished to halt negotiations until conditions improved. Prior to the second anniversary of the licence (7th Feb 2009) an application for waiver of relinquishment in year 3 was submitted. Elixir was subsequently informed the waiver was unsuccessful and that the company would be required to relinquish 50% of the EL 25261.