Annual report Ngalia project EL 24571 for the period 7 December 2010 to 6 Decemebr 2011

Abstract

The 2011 reporting period was largely used to review the previous exploration conducted on the tenement (including previous Royal work), attempt to identify further drill targets with reconnaissance anomaly follow-up, rockchipping, and mapping of a small anticline near the 2010 drilled Line C. Rehabilitation of the 2010 aircore and diamond drillholes, pads and access tacks was also conducted. Focus for 2012 is the southern portion of the tenement. It is currently thought that the southern portion of the tenement may contain buried, prospective Mt Eclipse Sandstone (similar to Bigrlyi). Royal's exploration methodology will consist of field reconnaissance including rockchipping and mapping of the southern portion of the tenement, possibly combined with soil sampling for partial leach geochemistry in an attempt to define and refine possible drill targets for follow-up AC or RC drilling.