Combined final report on EL 25956, EL 25957 and EL 25958 Beetaloo Project, for the period ending 4 November 2009

Abstract

Beetaloo Uranium Pty Ltd is a wholly owned subsidiary of Callabonna Uranium Ltd ('Callabonna' or 'the Company') and held 100% interest in Exploration Licences 25956, 25957 and 25958 until the tenements were surrendered on 4 November 2009. This is the final report for EL 25956, EL 25957 and EL 25958 covering all the exploration activities from the time of grant until 4 November 2009. Callabonna was exploring for sandstone-hosted uranium associated with oil and gas fields, and amenable to in situ leach mining. A number of potential host horizons have been previously identified including Cretaceous channel sands and conglomerates, sands within the Cambrian Top Springs Limestone and Proterozoic hydrocarbon reservoirs (Jamison, Moroak and Bessie Creek Sandstones). The Cretaceous sequence is favoured as a target because it is known to contain channel sands and conglomerates based on mapping by Stockdale geologists. The overall setting seems to be somewhat similar to that of the Texas Gulf which hosts several economic sandstone-hosted deposits. During the two year tenure period the Company reviewed petroleum and seismic data and regional geophysical datasets however no field activities were ever completed. While the potential for uranium mineralisation may still exist in the Beetaloo Sub-Basin area, the Company has changed its focus to concentrate on other more prospective projects in the Arunta region. The change in Company focus follows a merger between Callabonna Uranium Ltd and MKY Resources Ltd, an ASX listed public company.