Annual report EL 24533 Ngalia Regional Project period ending 6 February 2006

Abstract

EL 24533 is part of the Ngalia Regional Project and is located 390 kilometres (by road) northwest of Alice Springs. The Ngalia Regional Project is 100 percent owned and operated by Energy Metals Limited. The Bigrlyi Project located 15 kms along strike to the east, is a Joint Venture between Energy Metals Limited with 53.3 percent (operator), Valhalla Uranium (a subsidiary of Paladin Resources Ltd) with 41.7 percent and Southern Cross Exploration NL with 5 percent. The Bigrlyi camp and core yard facilty is used to support the entire Ngalia Regional Project. Uranium mineralisation was discovered at Bigrlyi by a joint venture managed by Central Pacific Minerals (CPM) in 1973 which occurs to the east of EL 24533. In the period 1974 to 1982 the project was subject to several major drilling campaigns, with some 413 holes (total 37,500m) completed. Subsequent to 1982 CPM completed metallurgical testing and resource calculations, with a global resource of 809,000 tonnes at 3.43 kg/t U3O8 for 2,770 tonnes of contained U3O8 delineated at Bigrlyi (note that these resources are not JORC 2004 compliant). Field activities conducted in the period 1983 to 2004 were limited to maintenance of the core shed. In May 2005 Energy Metals acquired a 53.3 percent interest in, and assumed management of, the Bigrlyi project through the purchase of the interests of CPM and Yuendumu Mining Company NL. In September 2005 Energy Metals listed on ASX after raising $3M, primarily to fund exploration at the Bigrlyi and Ngalia Regional Projects. Exploration undertaken in the period 06 February 2006 to 06 February 2007 included: Re-establishment of the exploration camp, Review/compilation of historical data, Converting historic data to digital format, Surface prospecting, mapping and sampling, Exploration planning/logistics, CLC exploration notifications/negotiations.