Ochre Hill EL 9999 Annual Report for the period 22 July 2004 to 21 July 2005

Abstract

This report details exploration activities for iron mineralisation conducted by Territory Iron Limited within EL 9999 (Ochre Hill) during the period 22 July 2004 to 30 September 2005.The reporting period was extended beyond the report year end of 21 July so as to capture the complete results from a drilling programme that was in progress during July-August within the tenement. Ownership of the tenement was transferred from Mr Rodney Johnson to Territory Iron on 29 June 2005 through exercise of an option-to-purchase clause in an Agreement with Mr Johnson. Work during the reporting period comprised 136 RAB and RC drill holes for a total of 5,213.5 metres at Ochre Hill deposit and a high resolution airborne magnetic and radiometric survey (133 line kms) over the two tenement blocks forming the licence area. The drilling at Ochre Hill was on a 20m line separation x 10-20m hole spacing configuration designed to achieve JORC compliant Indicated to Measured Resource status for the deposit. At the time of reporting the drilling had been finalised and resource modelling had just commenced. Drill results indicate iron mineralisation at 50% Fe cut-off describes a NNW striking ore body (Ironstone No.1) confined to the ridge area at Ochre Hill. Total aggregate strike length of the mineralisation is about 420 metres; it extends to about 50m depth from surface. The magnetic survey data is still to be comprehensively interpreted; however a preliminary examination indicates the iron mineralisation mineralisation at Ochre Hill has a magnetic signature.