Combined annual report for period ending 25 October 2011 Barkly Project EL 27197, EL 27198, EL 27199 and EL 27200

Abstract

The Barkly Project, located approximately 66km east of Tennant Creek, is a sub-project of Vale's Georgina Phosphate Exploration Project and covers Cambrian rocks of the Georgina Basin. The rocks of the Georgina Basin range in age from Late Proterozoic to Early Palaeozoic. Outcrop within Barkly is limited with much of the basement geology concealed beneath Tertiary and Quaternary sediments. Phosphate exploration work on Barkly in 2011 consisted of a Flora and Fauna Desktop Study Report, geophysical interpretive targeting, line clearing and reconnaissance reverse circulation drilling and drillsite rehabilitation. A Geophysical Basin Modelling Study was completed over Vale's Georgina Project, including Barkly, to gain a better understanding of the Georgina Basin and assist with phosphate drill targeting. Nine (9) holes for a total 993m and 525 composite drill samples were completed on EL 27198 and EL 27199. Drilling was completed on EL 27197 and EL 27200 in the previous reporting year and the 2010 assay results are provided in this report. Assay results for the 2011 RC drilling will be available in the next reporting period. Further drill targeting using RC drill results and geophysical modelling studies is planned for the 2011-2012 reporting period.