Combined annual report for the Eastern Project Area 16 November 2007 to 15 November 2008

Abstract

Exploration Licences (ELs) in the EPA, were acquired by Giants Reef Exploration Pty Ltd (Giants Reef) and Santexco Pty Ltd (Santexco) to search for Tennant Creek style iron oxide copper-gold deposits. Giants Reef and Santexco are wholly owned subsidiaries of Emmerson Resources Ltd (Emmerson). This combined report records the exploration work completed on these ELs during the EPA Combined Reporting period from 16 November 2007 to the 15 November 2008. Emmerson opened the reporting period with its successful Initial Public Offering (IPO), raising $20 Million and listing on the ASX on 17 December 2008. Emmerson immediately commenced its aggressive exploration strategy of the Tennant Creek Mineral Field, including the EPA tenure, in accordance to its business plan and strategy developed during December 2008. Exploration work during the Initial part of the reporting period was limited to desktop studies and included; the commencement of the compilation of all historical drilling data from the Tennant Creek Mineral Field into a robust database, this continued throughout the reporting period and will continue into the next reporting period; the reassessment and remodelling of historical prospects with the aim of generating early targets for drill testing. This initial work generated a number of targets for drill testing and in-ground exploration work commenced in the EPA on 18 May 2008 at Golden Kangaroo East and continued throughout the entire reporting term. Exploration drilling in the EPA during the reporting period was focused at the following prospects; Golden Kangaroo East (MLC 577), Golden Forty Mine (MLC 36, 136, 584 - 586, & SEL Application 25890), Muscadel (MLC 52) & East Peko (EL 8279). A Detailed Ground Gravity Survey, conducted by Fugro, Ground Geophysics commenced 27 March 2008. This ground gravity survey was conducted over Emmerson's entire Tennant Creek tenure package and included the EPA tenements. The survey was conducted on quad bikes with support from a Toyota Landcruiser 4WD. The readings were taken on a 500m station spacing's, on lines 500m apart oriented North- South with a 250m station offset. Readings in areas requiring more detail were taken on 50 station spacing's on 100m spaced lines oriented North - South. The survey was completed during October 2008. A Detailed Airborne Magnetic, Radiometric and Digital Terrain Survey was conducted by UTS Geophysics and commenced 26 May 2008 and was completed on 22 July 2008. The survey included areas of the EPA. The survey was flown with a FU24-954 fixed wing survey aircraft on 75m line spacing's, with 750m tie line spacing's and a sensor height of 25m for a total Line KM of 38,278, with 2,461km's (approximately 6.43%) being in the EPA. Magnetic Data was captured using a Scintrex Cesium Vapour CS-2 total field magnetometer, Fluxgate three component vector magnetometer, RMS Aeromagnetic Automatic Digital Compensator (AADC II) and a Diurnal monitoring Magnetometer (Scintrex Envi8mag). Radiometric Data was captured using an Exploranium GR-820 gamma ray spectrometer and Exploranium gamma ray detectors. The commencement and completion of the Detailed Ground Gravity Survey has provided Emmerson with data never captured before in the Tennant Creek field. Analysis, assessment and interpretation of this data commenced during the reporting period and will continue during the next reporting period. Combined with the commencement and completion of a Detailed Airborne Magnetic, Radiometric and Digital Terrain Survey providing even more data for analysis, assessment and interpretation, Emmerson now commands a strong position to conduct effective and aggressive exploration of the Tennant Creek Mineral Field and the EPA. Preliminary analysis, assessment and interpretation of these data sets gathered during the reporting period have provided huge encouragement for Emmerson staff to be able to identify quality targets in the EPA for further analysis, assessment and interpretation, provided good outcomes, drill testing during the next tenure term. Emmerson engaged the Centre for Exploration Targeting (CET), School of Earth & Geographical Sciences, FNAS, based at the University of Western Australia (UWA) to undertake some focused geological studies of the Tennant Creek Mineral Field, in collaboration with geologists from Emmerson, through a 3 phase program. The Primary focus of the these programs is to undertake structural analysis at a deposit to camp scale of the Tennant Creek Mineral Field. All tenure in the EPA was included in this study which commenced in March 2008 and continued through to the end of the reporting period, and will continue into the next reporting period. The work under taken by CET in phase 1 of 3 involved targeted work on advanced prospects and deposits in the Tennant Creek Mineral Field, this was used to refine existing targets and provide further data towards generating near mine targets. Phase 2 of 3 involved developing a better regional structural map and structural model, with a core focus on directly linking outcomes with targeting. Phase 2 is near completion and phase 3 of 3 will be undertaken during the next reporting period. Exploration drilling was conducted in MLC's 4, 5 & 129 all contained within EL 8279, at the East Peko Prospect. 14 Reverse Circulation (RC) holes (EPRC001 - 014) were drilled by Gomex Drilling, between 11 August 2008 and 19 September 2008, for a total of 2,111m, and are detailed in the table below. No Significant intercepts were found.