Fourth Annual technical and final report EL 29019 for period ending 11 April 2016

Abstract

The Chandler Project consists of six exploration licenses held by Tellus Holdings Ltd ('Tellus'), located in the Amadeus Basin, approximately 130km south of Alice Springs. This final annual report relates to one of the exploration licenses; EL 29019 South Charlotte for the reporting period ending 11th April 2016. The Chandler Project is targeting subsurface salt deposits to assess potential evaporitic mineralisation within the Amadeus Basin. Two known salt units are present in the Chandler project area, namely the Chandler Formation and the deeper Gillen Salt Member. Tellus are targeting the Chandler Salt Formation. Tellus completed a diamond drilling program on nearby tenement EL 29018. Core sampling collection and wireline logging were completed. Geochemical and mineralogical analysis results were positive confirming massive halite unit. During the reporting period environmental studies continued over the Chandler project site, including water investigation studies, water bore drilling, flora and fauna surveys and soil assessment to support the EIS for MLA 30612. The wireline and stratigraphic information resulting from the drilling program were used to update the seismic interpreted geological model over the project area and assist in mine planning studies.