EL 23237 Mount Porter Annual report for the period 8 December 2008 to 7 December 2009

Abstract

This report details exploration activities conducted by Territory Iron Limited for Frances Creek style hematite mineralisation within EL 23237 during the year ending 7th December 2009. Exploration activities during the reporting year comprised: Application of the Frances Creek iron ore genesis model to the available data gathered over the life of the tenement. This work once again demonstrated the lack of potential for the tenement to host economic iron mineralisation; The lack of potential is governed by the underlying geology on the tenement - the stratigraphy does not host iron mineralisation, and the local structural evolution of the area has not been the same as the Frances Creek area. The Mount Porter region is devoid of ironstone outcrop, with the majority of the lease dominated by a combination of siltstone, sandstone (pelite/psammite), phyllite, greywacke and tuffaceous chert. At the latter part of the reporting year, negotiations were underway to return the tenement to Arafura Resources, as per an agreement entered into in January 2008 when the tenement was acquired. Future work will concern gold exploration, a commodity Territory Resources does not have the mineral rights for.