Annual report on EL 27181 Denison for the period 12 November 2009 to 11 November 2010

Abstract

During this period Callabonna Uranium digitally captured all historical geochemistry data (35 rock chip samples) and reprocessed open file geophysical imagery related to EL 27181. Field work included reconnaissance traverses and rock chip sampling over the Wangala granite outcrop of the Mt Denison Range. 35 rock chip samples were collected and assayed for a broad suite of elements. The company was granted a collaborative drilling granted in mid 2010 however has not yet completed drilling due to unforeseeable issues related to unseasonably high rainfall. A contractor has been engaged to carry out a MMI soil geochemistry program however has been unable to complete it due to high rainfall. The company has chosen to retain all portions of this lease for the following period.