Partial relinquishment report February 2011

Abstract

Resource Star's exploration activity on the Marrakai Project has concentrated on regional techniques aimed at focussing attention on areas of potential interest for possible drill follow-up. The relinquished eastern half of the tenement has had both detailed airborne geophysical surveying and regional soil / pit rockchip sampling, as reported in the Annual Report submitted in Dec 2010. Analytical results have been received for the soil sampling, and results on the eastern half were of lower responsiveness than the western half of the tenement, so the area relinquished from EL 24614 was covered to a relatively small degree by RSL's 2010 detailed airborne geophysical survey reported in the Edith River Uranium Project Annual Report (lodged under EL 23569 in July 2010), but no work was performed on the ground in the area relinquished. The decision as to which area to retain was based on regional geophysics and remote sensing data. The area relinquished has limited uranium channel response and is considered to have less likelihood of possible strike extensions or repetitions from the nearby targets. The potential mineralisation styles considered by RSL include sandstone and vein-hosted uranium, and vein and shear-hosted gold.