Annual report on EL 24451 Ngalia Regional Project period ending 6 February 2008

Abstract

EL 24451 is part of the Ngalia Regional Project and is located 200 kilometres (by road) northwest of Alice Springs. The Ngalia Regional Project is 100% owned and operated by Energy Metals Limited. The Bigrlyi Project located ~ 150kms along strike to the west northwest, is a Joint Venture between Energy Metals Limited with 53.3% (operator), Valhalla Uranium (a subsidiary of Paladin Resources Ltd) with 41.7% and Southern Cross Exploration NL with 5%. The Bigrlyi camp and core yard faculty is used to support the entire Ngalia Regional Project. The Malawiri Prospect is located in the southeast of the Ngalia Basin, on E24451 approximately 200 kilometres northwest of Alice Springs. Exploration was carried out on the Malawiri Prospect between 1978 and 1982 in a Joint Venture between Central Pacific Minerals, Urangesellschaft GmbH and AGIP, following discovery of the Minerva uranium deposit by AGIP along strike. Uranium mineralisation was discovered at Bigrlyi by a joint venture managed by Central Pacific Minerals (CPM) in 1973 which occurs to the west northwest of E24451. In the period 1974 to 1982 the project was subject to several major drilling campaigns, with some 413 holes (total 37,500m) completed. Subsequent to 1982 CPM completed metallurgical testing and resource calculations, with a global resource of 809,000 tonnes at 3.43 kg/t U3O8 for 2,770 tonnes of contained U3O8 delineated at Bigrlyi (note that these resources are not JORC 2004 compliant). Field activities conducted in the period 1983 to 2004 were limited to maintenance of the core shed. In May 2005 Energy Metals acquired a 53.3% interest in, and assumed management of, the Bigrlyi project through the purchase of the interests of CPM and Yuendumu Mining Company NL. In September 2005 Energy Metals listed on ASX after raising $3m, primarily to fund exploration at the Bigrlyi and Ngalia Regional Projects. Exploration undertaken in the period 06 February 2007 to 06 February 2008 included: Field Mapping and GPS surveying; Exploration planning/logistics; Submition of a drilling proposal for 4,500m of aircore and RC drilling in 72 holes; CLC exploration notifications/negotiations and approval; and Airborne Geophysical survey measuring magnetic, radiometrics and topography. UTS Geophysics conducted a low level airborne geophysical survey for the tenement. This was done in conjunction with Scimitar Resources and Toro Energy over their adjacent tenements to spread the survey over a larger area, results are pending.