Sixth Combined Annual Report EL 8696, EL 8697, EL 9442 and EL 9449 Lake Mackay Project for the year ending 21 August 2008

Abstract

The Lake Mackay Project is located approximately 460km WNW of Alice in the western Arunta region. The project comprises four granted Exploration Licences - EL 8696, 8697, 9442 and 9449. All tenements are registered to Tanami Exploration (TENL), a wholly owned subsidiary of Tanami Gold NL (TGNL), a publicly listed company. Previous exploration has outlined several prospects within the Lake Mackay Project area. In the first two years of tenure previous managers Newmont Gold Exploration Pty Ltd (Newmont Gold) defined the Whakatipu, Taupo, Te-Anau and Manapouri anomalies. Geochemical sampling and RAB drilling by TENL in the third year identified the Whakatipu, Tekapo and Ohau anomalies. An Aircore drilling program at the Tekapo prospect in Year 4 targeted gossanous ironstone and returned several promising intersections peaking at 16 metres at 3.4g/t Au from 29 metres in LMA133. In Year 5 an aircore drilling, lag and rock chip sampling program followed up the mineralisation discovered in Year 4. Exploration during the year included a review, a petrographical investigation as well as a combined ground magnetic and gravity survey. The review concluded that the exploration in the lake Mackay project area should be mindful of IOCG deposit models, and the possibility of encountering either disseminated or massive sulphides. The interpretation of the geophysical images indicates the following: In the vicinity of the Tekapo gossan are some NW-SE structures in the magnetic response, which undergo a NS offset. There are localised magnetic lows near the north and south ends of the mapped Tekapo gossan exposure; The residual Bouguer Gravity image shows a localised anomaly of approximately 0.20 mGal at 617100E/7537800N, immediately east of the Tekapo gossan. The NW-SE trends apparent in the magnetics are weakly duplicated in the gravity, but a couple of NESW trends are more obvious across the Tekapo prospect area; With the exception of the above anomalies there are no other strong magnetic or gravity responses at depth, which are directly associated with the Tekapo gossan area; The petrological investigation identified the following; In four thin sections a sillimanite gneiss and in one an altered granite was observed; One section revealed massive pyrite with scattered blebs of fine gold; In one section two differing chips exposed anhedral quartz and opaques as well as quartz aggregates with Fe-oxide veinlets, fine visible gold and minor muscovite.