Aqua Project Group annual report for EL 24512 and EL 24082 for the period 29 August 2012 to 28 August 2013

Abstract

During the reporting period land access and work program meetings were undertaken with the Northern Land Council. A drilling program approved by Merlin Diamonds management was proposed for EL 24082 and adjoining tenement EL 24512 located on Aboriginal Land. Delays in gaining access through the NLC to the adjoining tenement resulted in the proposed program being postponed. Further negotiations with the NLC were postponed following the Company's decision to focus all resources and funding on the commissioning of the Merlin Diamond Mine. It is anticipated that following successful commissioning, which is currently underway, that resources and funding will be reallocated to the Company's exploration programs. The Company completed rehabilitation to the satisfaction of the Department of Mines and Energy. An application for Group reporting was submitted and was approved. A Mining Management Plan was also submitted (updated and included in 0649-01).