Chilling Project EL 22738, EL 23682, EL 24557, EL 25076, EL 25077, EL 25078 Combined annual report 9 November 2009 to 8 November 2010

Abstract

This report covers exploration work carried out on the Chilling project for the 2010 field season by Crossland Uranium Mines Limited (Crossland). The project comprises six exploration licences, ELs 23682, 24557, 25076, 25077, 25078 and 22738, all of which form a north-south trending corridor stretching from Litchfield Park in the north to the Wingate Plateau in the south. The presence of uranium in what is interpreted to be an unconformity-related environment has been investigated by Crossland at several locations within the project properties. Uranium also occurs in a structural setting in granite at the historical MEMA prospect in EL 25076 and in pegmatitic vein swarms within the Soldiers Creek granite located in EL 22738. The entire region covered by the tenements has high potential for uranium deposits due to the presence of favourable source and host rocks and the identification of suitable structural traps and depositional sites. The main field exploration activities for the current year consisted of radiometric anomaly assessment, geological mapping, rock chip, soil and stream sediment sampling, and detailed and regional ground spectrometer surveys. The most intensive field work was restricted to ELs 25076 and 22738. Within the latter tenement, the 2009 discovery of interpreted lower Proterozoic stratigraphy with associated uranium and base metal anomalies led to the continuation of a very intensive mapping and sampling program. Drilling programmes for a proposed 1600-1800 metres for ELs 22738, 23682, 24557 and 25076 had to be postponed due to a combination of the inability of several drilling contractors to give a reliable commitment, the onset of early rains in the region. Additionally, in the case of 23682 and 25076, Crossland had applied to the AAPA for sacred site clearances in March 2010 - these were eventually completed in October. It has been proposed that the drilling programmes will be now be commenced at the beginning of the 2011 dry season, and will incorporate holes already planned for the 2010 season as well as those resulting from the interpretation of the 2010 fieldwork results. The total expenditure for all Chilling project licences was $1,141,664.76. This figure represents all expenditure up to the anniversary dates of each EL.