Annual report for EL 24625, EL 24636 and EL 24637 for the year ending 17 December 2009

Abstract

This report details the exploration activities carried out over Cauldron Energy Ltd. (Cauldron) Eclipse Project in the Northern Territory, during the period 19th December 2008 to 18th December 2009. This work included research, data acquisition and target generation. During the year the Company entered into an agreement with the CSIRO and fellow explorers Energy Metals Ltd. and Thundelarra Exploration Ltd to undertake the CSIRO -Joint Surveys Uranium, Ngalia Basin Project. This collaborative project aims to identify the geological, structural, mineralogical, alteration and fluid flow characteristics of uranium mineralisation within the Ngalia basin. The project will be funded by all parties and is expected to provide a robust understanding and framework that will drive future uranium exploration and mineralisation discoveries in the area. The 18 month project commenced during late November 2009, with the initiation of data capture and basin modelling . During the current year, ending in December 2009, The Company under took a friendly takeover/merger with fellow uranium explorer, Jackson Minerals Ltd. This process commenced in late December 2008 and was completed at the end of July 2009. As part of this process the newly merged company, headed by its new Chairman Tony Sage, changed its name from Scimitar Resources Ltd to Cauldron Energy Ltd. The purpose of the merger was to create a larger uranium focused entity, which by its size and the quality of its projects in Australia and Argentina, would be able to attract far greater funding to advance its exploration projects. As a result of this extended corporate activity and the resulting shortened field season, the Company was unable to undertake follow up drilling at the Eclipse Project. Field programs including Aircore and RC drilling targeting uranium mineralisation are expected to re-commence during early 2010. The tenements were due for compulsory 50% reduction in December 2009. Partial relief from this requirement was requested for EL 24625, with a total of 66 sub blocks (17%) nominated for relinquishment. EL 24637 was reduced by 146 sub blocks (50%), whilst EL 24636 was surrendered (198 sub blocks 100%).