Annual report for EL 22848 Lake Sarah North 2 for the period 19 December 2008 to 18 December 2009 McFarlane Project

Abstract

This is the second annual report on EL 22848 for the period 19 December 2008 to 18 December 2009. No field exploration was carried out over the area. It is important for ATH to ensure that there is a reasonable amount of exploration land to include with the TMJV/Groundrush Mining Leases as a saleable package. If we reduce the ATH landholdings in the vicinity of the TMJV/Groundrush Mining Leases and processing infrastructure, the likelihood of securing a sale to an established junior Mining Company or Initial Public Offerings may be diminished. In addition, all of the area covered by the project area is considered prospective for gold mineralisation similar to the Tanami, Twin Bonanza, Old Pirate and Groundrush deposits and any purchaser will require time to effectively evaluate the exploration potential of the area. Further to our recent discussions with the Department of Regional Development, Primary Industries, Fisheries and Resources, Newmont Australia Limited (Newmont) anticipates recommencing the divestment of the ATH exploration tenements and TMJV/Groundrush mining leases subject to an improvement in market conditions. During 2010 Newmont is planning to continue with its environmental auditing of ATH tenements to ensure the success of previous rehabilitation of exploration disturbances.