Annual report for EL 8970, EL 8971, EL 9559, EL 9563 Marla Project for the period ending 27 April 2009

Abstract

Palace Resources Ltd. are targeting and uranium mineralisation in both recent sediments, derived from the weathering and remobilisation of older uraniferous lithologies as well as structurally controlled and uranium mineralisation associated within graphitic and pyritic members of the Lower Proterozoic Dead Bullock Formation and chloritic members of the Killi Kill beds which unconformably overlie the Dead Bullock Formation. Palace's partner Excalibur Mining Corporation Ltd. are pursuing structurally controlled gold mineralisation. Often at lithological contacts, fault structures can re-mobilise gold and other rare earth elements along these conduits to areas of lower pressure where ore formation occurs. Exploration during this period consisted of data review of previous results, interpretation of available regional magnetic and landsat data - targeting possible dispersion halos related to mineralisation. The challenges are geological and cultural and lie outside the ability of the tenement holders. Therefore the decision was made to allow the tenements to expire.