Annual technical report for EL 26100, 13 February 2010 to 12 February 2011

Abstract

There has been no on-ground exploration activity carried out over EL 26100 by Spinifex Uranium Pty Ltd (Spinifex or the Company) during the year ended 13 February 2011. In a meeting in June 2010, representatives from the company advised the Department on their intentions to seek a joint venture partner or sale of the tenement to another party. Attempts early on in establishing this commitment from another company proved disappointing, however the Company has now received a conditional offer to purchase the abovementioned tenements by Uranium Ventures Pty Ltd. Spinifex notes DOR's expectations in relation to the statutory reporting of titles, however in light of our current position, Spinifex proposes that no on-ground activity (and therefore no exploration expenditure, excepting administration costs) be undertaken during the period 13 February 2010 and 12 February 2011 for exploration on EL 26100 so that the aforesaid transaction can be finalised.