Second annual and final technical report for EL 27973 Eridunda 1, for the period ending 24 October 2012

Abstract

A regional geological desktop study was carried out by Terra Search Pty Ltd for Tellus to identify areas prospective for evaporite mineralisation. A review of historic work over the area was completed. Exploration activities to date indicate a significant thickness of massive to semi massive halite exists within the Chandler Formation, but that the Chandler salt is unlikely to be present in the area covered by EL 27973. Tellus will concentrate exploration over areas where the Chandler salt is likely to be present and therefore recommended EL 27973 be surrendered in full.