Annual and final report on EL 25261 Ngalia project, for the period 7 February 2009 to 7 February 2010

Abstract

No new in-field exploration activities were undertaken during the reporting period (year 3 of tenure). Following the compilation of all open file data and the consideration of a forward exploration program for the licence the primary activities undertaken were marketing the licence to adjoining landholders and industry participants in order to find a Joint Venture partner to take the project forward. Preliminary farm out terms were being negotiated with a party seeking an ASX listing but due to market conditions they were ultimately unsuccessful in their endeavours and hence the transaction was not consummated. Post the second anniversary of the licence Globe Resources Pty Ltd ('Globe') submitted a Relinquishment Report (7 May 2009) over 50% of the licence consistent with its terms of issue. Globe retained the southern area of the licence determined to be more prospective for uranium mineralisation. Following the breakdown of negotiations to farmout the remaining licence a Surrender Letter was lodged on 25 January 2010 relinquishing the licence.