Annual report EL 23824 Millers 9 February 2008 to 8 February 2009

Abstract

This report is submitted by Territory Resources Limited on behalf of Softwood Plantations Pty Ltd, the holder of EL 23824, to meet the statutory reporting commitments on the tenement for the year ending 8th February 2009. Exploration activities were limited to field inspections by new exploration staff. Snowden completed a new resource model using exploration drilling from the infill drilling conducted during 2007 - 2008, and the original drilling information used to generate the Inferred Resource. The new JORC-compliant Resource statement now reports Manganese content, and the new classification has converted all the Inferred Resource in the November 2005 model to an Indicated Resource in the April 2008 model. Completion of the drilling and resource model to a JORC-compliant Indicated Resource has triggered the acquisition of an additional 25% of the tenement from Softwood Plantations Pty Ltd, taking Territory Resources Limited's holding up to 75%. Australasia Gold completed 47 air core drill holes for a total of 826.5 metres. These holes were designed to provide broad-scale geochemical reconnaissance bedrock sampling beneath alluvial sediments of the McKinley River floodplain.