Annual exploration report Year 4 EL 22101, 10 September 2005 to 9 September 2006

Abstract

This report details exploration activity for diamond bearing kimberlite intrusives carried out by North Australian Diamonds Limited (NADL) over Exploration Lease EL 22101 for the period 10th September 2005 to 9th September 2006. The tenement is held under Bulgurri Diamonds, which is a 100% wholly owned subsidiary company of NADL. Following acquisition of the exploration lease in November 2004 a review of available data was undertaken and a work program implemented. Field work during the period included ground reconnaissance and geological mapping of previously identified indicator anomalies and the collection of seven stream gravel samples. These samples returned negative results for microdiamonds and kimberlite indicator minerals. An additional program of 15 stream gravel samples and 50 loam samples was completed as part of ongoing reconnaissance and follow-up work. These samples are awaiting transport to the laboratory for processing. Results are awaited.