Annual report for EL 25479 'Cleo's Regional Prospect' for the period 26 June 2008 to 25 June 2009

Abstract

Exploration Licence (EL 25479) located 175 kilometres by road, southeast of Darwin and covers an area of 10.01km2 within the Pine Creek Geosyncline. The project area is 100% owned by Atom Energy Ltd. Uranium mineralisation was discovered to the north east of EL 25479 at the Cleo's Project in the Twin and Dam deposits in the mid 1980's by Total Mining Australia Pty. Ltd. (Total Mining). From 1984 to 1988 Total Mining carried out an extensive exploration program which delineated the Twin and Dam deposits at Cleo's. The work by Total impacted on the area now covered by EL 25479 but failed to delineate significant anomalism in this area. In 2007, Atom Energy conducted reverse circulation drilling over the Twin and Dam deposits and established JORC compliant Inferred resource of 1.409 million tonnes at a grade of 304ppm U3O8 for 430 tonnes (960,000lbs) of contained U3O8 at a 100ppm lower cut off. A review of historic exploration data was conducted by Atom Energy followed by ground reconnaissance and field checking of geology, specifically the location of metasedimentary units on the project.