EL 10316 Reward Northern Territory Australia annual progress report for the period ending 21 July 2008

Abstract

Exploration Licence EL10316 Reward is located approximately 700 kilometres southeast of Darwin and some 20km south of the world class McArthur River zinc-lead mine. The Reward project comprises several occurrences of zinc + lead mineralisation, including the Reward lead deposit, which was discovered and mined briefly in the late 1950's by Mount Isa Mines Ltd. MIM retain title to a small Mining Lease over the Reward deposit. Rox Resources Limited ('Rox') entered into an Option to Explore and Purchase Agreement (the 'Option') with North Mining Limited over the Reward tenement in January 2008. During the period of the Option, Rox is manager of exploration on the tenement. A diamond core exploration drilling program was conducted over the Myrtle Sub-basin prospect in the southern portion of the Exploration Licence from May to July 2008. A total of 2,057 metres of was drilled in 6 holes. Significant intersections of Zn and Pb sulphide mineralisation (sphalerite and galena respectively) were made in this drilling. Assays are reported herein for the first four holes as follows: MY-016: 19 metres grading 5.5% Zn + Pb from 179 metres, including 5 metres grading 9.0% Zn + Pb from 189 metres depth, 4 metres grading 6.1% Zn + Pb from 160 metres depth, 4 metres grading 4.1% Zn + Pb from 217 metres depth. MY-017: 14.25 metres grading 4.0% Zn + Pb from 407.75 metres depth, including 2.25 metres grading 8.3% Zn + Pb from the same depth, 7.5 metres grading 5.0% Zn + Pb from 465 metres depth, including 2 metres grading 6.0% Zn + Pb from 465 metres depth, and 1.25 metres grading 9.1% Zn + Pb from 471.2 metres depth. MY-019: 12 metres grading 4.57% Zn + Pb from 149 metres depth, including 4 metres grading 5.8% Zn + Pb from 154 metres depth, 4 metres grading 4.65% Zn + Pb from 163 metres depth. Hole MY-018 was drilled into the footwall sequence and was not assayed. Visual inspection of hole MY-020 (assays awaited) indicates a number of zones of strong zinc-lead sulphide mineralisation. Hole MY-021 intersected a fault which appears to have reduced the thickness of the mineralised zone in that location. Geological interpretation based on the drilling results suggested that the mineralised zone should outcrop between the collars of holes MY-016 and MY-018. Soil sampling in this vicinity identified a 200ppm Zn anomaly which was also coincident with an IP anomaly from a 1967 survey. Extension of the soil sampling is in progress.