Annual exploration report Year 7 MLN 1154 Merlin 15 June 2004 to 14 June 2005

Abstract

This report details exploration activity for diamond bearing kimberlite intrusives carried out by North Australian Diamonds Limited (NADL) over Mineral Lease MLN 1154 for the period 15 June 2004 to 14 June 2005. NADL acquired 100% of mineral lease 1154 in November 2004 from Rio Tinto. During the reporting period NADL was registered with Australian Securities and Investment Commission (ASIC) as Striker Resources NL. The company name was changed to North Australian Diamonds Limited on 23 August 2005. The tenement is held under Bulgurri Diamonds, which is a 100% wholly owned subsidiary company of NADL. Following acquisition of the Merlin mineral lease in November 2004 a review of available data was undertaken and a work program implemented. Field exploration activities were significantly restricted due to the timing of the acquisition and minimal opportunity for exploration until following the wet season. Field work during the period included reconnaissance of previously identified anomalous targets, loam sample collection and drill testing of selected targets.