Annual report for Edith River Uranium Project EL 23568, EL 23569, EL 26219, EL 26220, ELA 27149, MLA 24342, ELA 25884, EL 25885, EL 26341 for the period June 2009 to July 2010

Abstract

This annual report outlines the work completed during the period July 2009 to June 2010 for the Edith River Uranium Project, comprising EL 23568, EL 23569, EL 26219, EL 26220, ELA 27149, MLA 24342 held by RSL's 100%-owned subsidiaries Orion Exploration Pty Ltd and Eastbourne Exploration Pty Ltd. Along with the recent additions of ELA 25884, EL 25885, EL 26341 from Jupiter Uranium Pty Ltd, the Project now covers a total area of approximately 1,195 km2. After discussions with the NT Department of Resources in February 2010 these tenements are to be treated as a single project with exploration work occurring sequentially, and it was agreed that reporting should occur on the anniversary of EL 23569. Resource Star Ltd completed a successful fund raising, and relisted on the ASX in March 2010, and since then there have been delays in the start of field work due to an extended wet season in the region. Comprised of eight contiguous tenements the work undertaken during the period was based on an earlier major review of previous exploration and targeting strategies for the project as a whole, but is based on targeting known areas of uranium anomalism first, combined with potential structural controls. To provide the best information for this work a portion of the leases was selected for detailed airborne geophysical surveying. This work, flown in conjunction with other RSL projects elsewhere in the Northern Territory, covered approximately 40km of prospective strike length of known surface uranium occurrences, shearing and potential host rocks within the Edith River Uranium Project and included substantial portions of three of the larger tenements, EL 23568, EL 23569 and EL 26219, to the east and south of the Project. A separate target was also flown to the north eastern extent of the project area in EL 23568 and EL 26220. Ground exploration, involving mapping and sampling, has commenced at the Tennysons Prospect in EL 23568, where historical alteration, shearing and surface uranium occurrences have been reported in granite. The Project is situated approximately 200km south of Darwin between Pine Creek and Katherine in the Northern Territory. Geologically located toward the southern extent of the Pine Creek Orogen, the region hosts the north-northwest trending Pine Creek Shear Zone, and includes a number of uranium, gold and copper prospects. Exploration has primarily focused on the uranium deposits associated with the Cullen Granite and the sedimentary sequences intruded by and overlying it.