Annual exploration report for EL 28077 for the period 14 March 2011 to 13 March 2012

Abstract

The activities on EL 28077 during the reporting year consisted of: obtaining satellite imagery form GeoImage, which included ortho-rectification and digital surface modeling for 2 metre contours; Desktop studies and historical reviews (in conjunction with adjacent tenement EL 26071, which Territory Resources is in the process of getting transferred for 100% ownership); and Helicopter assisted reconnaissance geological mapping and rock-chip sampling survey within EL 28077 (and adjacent EL 26071). Territory Resources Ltd will review the work recently completed and pending the outcome, may complete additional reconnaissance exploration fieldwork that will include further mapping and rock-chip sampling over EL 28077 (and adjacent EL 26071). Again, this will require helicopter assistance as the area is very remote. If the review of the area does not look favourable for iron ore +/- manganese mineralisation, Territory Resources plans to conduct a stream sediment sampling survey to determine whether any other type of mineralisation may be present.