EL 28506 Oolloo Road Tipperary Project Annual exploration report for period ending 26 July 2012

Abstract

Exploration during year 1 was postponed whilst the company re-organised its exploration strategy and land holdings in 2011/12. This re-organising is progressing successfully, although taking longer than expected, and includes the acquisition of a large gold project in far north Queensland from Republic Gold. The far north Queensland Project when combined with the companies prospective NT holdings now allows TM to facilitate its growth through a newly floated ASX company planned in 2012. Territory Minerals believes this float will put the company in an even stronger position to make discovery through its exploration in its NT and Queensland Projects. Recent exploration activity in the area has discovered significant rare earth element and uranium mineralisation (Stromberg, Drax and Quantum TUC Resources) in the same stratigraphic and structural terrane to that covered by this project. The REE mineralisation at Stromberg has excellent mineralogy (xenotime) with a high heavy rare earth component (the more valuable of the REEs) and is within Tolmer sediments. Stromberg and Scaramanga both have trends striking onto Territory Minerals Tipperary Project.