2011 Annual report EL 24287 Native Gap, for the period 12 February 2010 to 11 February 2011

Abstract

EL24287 was granted to Imperial Granite and Minerals Pty Ltd on 11 February 2005. Excelsior Gold Limited (formerly Atom Energy Limited) purchased the property from Imperial Granite and Minerals in April 2007. A Farm-In and Joint Venture Agreement with NuPower Resources Limited was executed on 8 July 2008 to facilitate exploration for energy minerals on EL 24287. The Native Gap property is strategically positioned amongst NuPower's extensive Aileron Project tenements where exploration targetted palaeochannels with potential for sandstone hosted uranium mineralisation in Cainozoic sediments. NuPower spent in excess of $290,000 on exploration on EL 24287 but elected to withdraw from the Farm-In Agreement in July 2010 to concentrate activities on its wholly-owned Aileron Project tenements and more advanced projects in the Northern Territory. Excelsior Gold retains 100% interest in EL 24287 and following retrieval of all exploration data from NuPower, a review of exploration activities was undertaken. The exploration to date has highlighted potential for mineralised channels within the tenement and an application for extension of term of EL 24287 was lodged on 4 February 2011 to enable ongoing assessment of the palaeodrainage system. Broad palaeochannel targets are defined within EL 24287 and further interpretation of the AEM data and follow-up aircore or rotary mud drilling is recommended to refine and test targets.