Combined annual exploration report for the period ending 26 October 2010

Abstract

Field-based exploration for phosphate at the Barkly Project consisted of helicopter-supported field mapping, rock-chip sampling (133 samples) and reconnaissance Reverse Circulation (RC) drilling (VGRC015-021, 1080m, 360 composite drill samples) during the reporting period. An open file literature review, acquisition and reprocessing of geophysical data, an AAPA register search, acquisition of NRETAS environmental data and the compilation of a Mining Management Plan and XRF analysis of historic water bore chips were also completed. Detailed surface mapping and rock-chip sampling were completed to gain a greater understanding of the lithological and structural controls within the project area. No significant rock-chip results were recorded. Assay results from holes VGRC020-021 are pending. The best result returned to date from the Barkly Project is 6m @ 4.66% P2O5 from 114m in VGRC 019. Although no high-grade phosphate intercepts have been recorded in the assays received so far, the drill results are still considered encouraging with several elevated phosphate intercepts received. Further drill targeting using recent detailed surface mapping, geophysical interpretation and modelling (aeromagnetics and gravity) and 2010 drilling data is planned for the 2011 reporting period.