First Combined Annual Report for EL 24246 and EL 24606 year end 28 December 2007

Abstract

Toro Energy Limited under an option agreement with the Tenement holder Deep Yellow Limited undertook a programme of resource drilling on a two kilometre block of the Napperby uranium deposit. Drilling and down hole gamma probing has confirmed and enhanced understanding of the deposit. Further assessment is pending assay results and completion of the drill core logging and sampling. Deep Yellow Limited had a mineral resource estimation commissioned with Fin Ore in early 2007. This gave an Inferred Resource estimation of 1,900,00 tonnes at a grade of 360 ppm U3O8 for 670 tonnes or 1,500,00 lbs of contained U3O8 Toro Energy Limited during the 2007 period conducted a successful trial airborne geophysics survey of TEMPEST over both EL 24246 and EL 24606. This survey has highlighted an irregular granitic basement architecture onto which the mineralised sediments at Napperby have been deposited. In addition, detailed combined magnetic with radiometric surveys were conducted over the two adjoining tenements, EL 24246 and EL 24606. This survey was undertaken jointly with operators of the surrounding tenements and the pending results are considered to be likely to assist mapping of the mineralised zone and to assist in future drill pattern planning. In addition a trial geobotanical sampling programme was conducted and hydrogeochemical water samples were collected from the drill holes for analysis, both are awaiting assay results.