Annual report on EL 25794 from 11 June 2012 to 10 June 2013

Abstract

During the year under review, an appraisal of geological, geochemical and geophysical data were undertaken along with a number of field visits for ground truthing. A soil and rock chip sampling program was undertaken, and a total of 217 samples were collected. Of 217 samples, 199 were stream sediments and 18 rock chips samples, which were assayed for REE, base metals, uranium and Thorium concentrations. In addition, negotiations were held with interested parties to explore the region for REE mineralisation under JV arrangement. That will help to synergise efforts which will be an effective way to explore and develop the project area cost effectively. Exploration of EL 25794 has provided encouraging results for the presence of REE mineralisation. In recent geochemical sampling program not only REE of anomalous values have been encountered but uranium and thorium concentrations have been also encountered. In similar geological environment, Crossland Uranium Mines Limited has established a significant resource of REE mineralisation. It is highly likely that with further active exploration, particularly drilling can identify REE deposit similar to Charley Creek within the project area.