Annual combined report on EL 24879, EL 24928, EL 24929 Ngalia project for the period ending 21 September 2012

Abstract

During the year under review, an assessment of previous data was undertaken along with interpretation of geological, geophysical and structural data. In addition a number of field visits were undertaken for ground-truthing and future planning. This group of tenements is located in the immediate vicinity of the Bigrlyi uranium deposit with a JORC compliant uranium resource of 20.6 Mlb of U3O8 at a cut-off grade of 500 ppm U3O8. It also has 38.6 Mlb of V2O5 credits. The project offers good potential for uranium mineralisation. Towards southeast, drilling campaign has successfully intersected high grade uranium mineralisation at Afghan Swan (EL 25334), where uranium mineralisation is confined to undercover ancient paleochannel system. Processing and interpretation of geophysical data identified extensive paleochannel system at shallow depth within unconsolidated Tertiary sediments with uranium mineralisation.