Annual report EL 23824 Millers for the period 9 February 2005 to 8 February 2006

Abstract

This report is submitted by Territory Iron on behalf of Softwood Plantations Pty Ltd, holder of EL 23824, to meet statutory reporting commitments on the tenement for the year ended 8th February 2006. Current exploration of EL 23824 is focussed on both iron and gold mineralisation. Gold exploration is being conducted by Australasia Gold Ltd, while iron exploration is being carried out by Territory Iron. Work by Territory Iron comprised RC and RAB drilling and associated earthworks, regional and prospect scale mapping and rock chip sampling, gravity surveys, surveying, and resource modelling and estimation at Millers. A total of 33 RAB holes for 996 m and 33 RC holes for 992 m were drilled during the reporting period. A total of 1239 1m interval drill-hole samples and 73 rock chip samples were assayed. The drilling by Territory Iron has outlined an inferred resource of 1,029,000t at 52.47% Fe at Millers which is still open at depth, and along strike. More drilling will be carried out to increase this resource next dry season. Regional prospect mapping identified numerous outcrops of iron mineralisation adjacent to, and accurately located the known mineral occurrences at, Millers, Bowerbird, Boots, Lewis and McFarrars which may be tested by drilling during the next dry season.