Ochre Hill EL 9999 Annual report for the period 22 July 2005 to 21 July 2006

Abstract

Activities conducted by Territory Iron Limited on EL 9999 (Ochre Hill) during Year 3 were resource and reserve estimation, mining planning and other activities and studies relating to mining operations at Ochre Hill commencing in 2007. An Indicated Resource of 1.15 million tonnes at average grades of 59.4% Fe, 0.11% P, 2.8% Al2O3 and 9.3% SiO2 was estimated for Ochre Hill. Reserves were estimated at 1.0 million tonnes at average grades of 59.5% Fe, 0.09% P, 2.8% Al2O3 and 9.3% SiO2. Next year's activities are expected to include reconnaissance mapping of ironstone outcrops and magnetic features and approximately 500m of scout RAB drilling.