Combined annual technical report EL 24246 and EL 24606 year ending 27 November 2009 Napperby Project

Abstract

During the current reporting period, activities on EL's 24246 and 24606 were confined to: Resource upgrade carried out by SRK Consulting using the 2006, 2007 and 2008 drilling results. The Inferred Resource compliant under JORC for Napperby was increased to 9.34 million tonnes (Mt) at 359 parts per million (ppm) (0.036 percent) U3O8 for 3,351 tonnes (7.39 million pounds) of contained uranium oxide using a 200ppm U3O8 cut off; Toro commissioned URS Corporation to undertake a Scoping or Concept Study on the Napperby deposit using contemporary mining, processing and economic parameters. At present these studies are ongoing and various options are being considered to take the project forward. The preliminary report by URS is presented here, but this will be updated in due course; A ground gravity survey was undertaken to determine if the prominent magnetic anomalies within the project area have a gravity signature. Only weak gravity signatures were defined, but do not exclude the potential for magnetite-rich IOCG systems being present. Magnetic and gravity data were modelled to define targets for drilling; Two exploration RC/DDH holes were drilled targeting basement magnetic/gravity anomalies. Unfortunately, drilling difficulties emanating from high groundwater flow and loose cover sediments led to a scale-back of the program. One hole did not reach basement and was terminated at shallow depth. The other hole was eventually drilled to target depth using diamond core techniques. No anomalous mineralisation or alteration was identified at this target and the magnetic signature can be explained by the natural magnetic character of the mafic igneous rocks in the drill hole. Access to the western drill targets was denied by traditional owners. All untested targets will be drilled next year using more appropriate drilling techniques and alternate access routes; Toro have developed a seamless database in Datashed format for all historic and contemporary data emanating from the Napperby project; All drilling data, including assays, that was not available at the end of 2008 is attached to this report. For completeness, all data relating to Toro's exploration at the site has been included. This data was used by SRK for the resource definition; Water geochemistry for samples collected in late 2008 were returned and are is attached. This data will be used as a background template for the groundwater chemistry at Napperby.