Combined annual report for EL 23070, EL 23071, EL 24019 and EL 24684 Bynoe Project for the period 21 July 2008 to 20 July 2009

Abstract

The Bynoe Project comprising four (4) granted exploration licences during this reporting period located on the south side of Bynoe Harbour, approximately 60km southwest of Darwin in the Northern Territory. This fourth combined annual report describes activities conducted for the period 21st July 2008 to 20th July 2009. During this reporting period follow up Phase 2 RAB / Aircore drilling was completed to test areas of interest from the Phase 1 results. An airborne electro magnetic (AEM) survey was completed over all then current tenements in conjunction with Geoscience Australia. The Phase 2 program was planned to test areas of interest in Targets 1 (C & D) and 2 where Phase 1 drilling gave elevated uranium responses within favourable stratigraphy and lithologies. Five (5) Scout holes were also drilled east of Target 5 to test lithologies in this area. A total of 59 holes were drilled for 1092 metres Two (2) traverses were drilled on Target 1C and one (1) on Target 1D to follow up anomalous U values located in Phase 1. On Target 1D, 6 of the 7 holes had elevated uranium with the best being 66.1 ppm U. The best results were in saprolised gneissic bedrock in BR232. Deeper values up to 30.7 ppm U and >500 ppm Pb were intersected in bedrock gneisses in BR 233. BR234 bottom of hole sample had 25.4 U and >500 ppm Pb. The bottom of hole sample in BR232 contained 441 ppm Pb. This target 1D remains with some interest. Target 1C had disappointing results. At Target 2, three (3) new traverses nearby and along strike of Phase 1 results were completed. Two traverses were extended into the less magnetic stratigraphy to the west that may represent Lower Cahill equivalents in the anticline and to the repeated western magnetic limb of the anticline. Results from Target 2 were disappointing. The best results was only 30.6 ppm U in a mafic schist. Five (5) Phase 2 holes around Target 5 were completed. They were drilled to map and test the nature of the lithologies in this area of little information both in the high magnetic and the low magnetic stratigraphy. Lithologies were mostly gneisses (meta- sediments) with some pegmatites. No meta-carbonates were intersected as in the Idemitsu Target 1A drilling to the west. Some elevated gamma counts are thorium sourced and related to pegmatites or similar. The results do not require any follow up at the moment. An AEM survey was completed by Fugro Geophysical services and flown in conjunction with Geoscience Australia as part of its Rum Jungle Survey. The lines were flown east west with a spacing of 1.66 kilometres for a total of 105 line kilometres. Shallow conductors represent the salty tidal area in the north and marshlands in the south. Deeper bedrock conductors occur in Targets 1B, 1C and around Target 5. The conductors around Target 5 are of some interest. The Idemitsu historic intersections at Target 1A are not far from them. The conductor shown to the south could provide a future target for RC drilling. It is planned to further test the historic uranium mineralisation located by Idemitsu at Target 5 by deep RC drilling. Uranex has planned a total of seven (7) angled holes at -60 degrees to the west. Five (5) of these are to test the known mineralisation down dip. A further two (2) are to test surface area of high airborne uranium response further to the west. Each hole is planned to 120 metres depth for a total of 840 metres.