Annual report EL 24246 Napperby 11 October 2005 to 10 October 2006

Abstract

EL 24246 'Napperby' lies within the Eastern Tanami region and is situated approximately 175 km northwest of Alice Springs. The tenement was granted on 11 October 2004 to Paladin Energy Minerals NL, a subsidiary of Paladin Resources Ltd, a publicly listed company. Deep Yellow Ltd (DYL) subsequently acquired EL 24246. This report describes exploration carried out during the reporting period. Those activities involved evaluation of previous drilling; trench excavation of selected sites and a 262 hole, large diameter auger drilling programme over a rectangular test area at 50 x 50 metre hole spacing. The appended digital files also include all the drilling results from the 2005 air core drilling (holes nwe-1 to nwe-569), because not all the assay data was available at the anniversary date. A JORC compliant ore resource estimate has been commissioned. Pending a favourable result from this exercise, a decision to commit to a close spaced drill-out of the 15 x 3 km mineralised zone will be made.