Nabarlek ML Project MLN 962 Annual technical report for the period 23 March 2008 to 22 March 2009

Abstract

Nabarlek Mining Lease is located in the western portion of the Arnhem Land Aboriginal Reserve, 28km east of the Gunbalanya (Oenpelli) Aboriginal Community and approximately 300km east of Darwin. The mine lease (MLN 962) contains the Nabarlek Uranium Mine which historically produced a total of 24.4 million pounds U3O8 at an average grade of 1.84% U3O8 (40.5 lb/tonne U3O8) between 1978 and 1988. Uranium Equities Limited ('UEQ') acquired the mine lease with the purchase of Queensland Mines Pty Ltd ('QMPL') in mid-2008. UEQ believes that the region provides outstanding potential to discover additional economic high grade uranium mineralisation in the immediate vicinity of the historical mine. Following an extensive period of program planning and data validation, UEQ completed a total of 27 RC drillholes for 3131m and 84 aircore drillholes for 1463m. During the drilling campaign, a total of 1409 samples were collected and assayed by a portable Niton XRF Analyser. The most significant intercept encountered was RC drillhole NMLR026, with 17m at 799ppm U3O8 from 65m, including 7m at 1444ppm U3O8 from 68m. NMLR026 targeted the interpreted position of the Nabarlek Shear to the south of the pit. While previous investigations have partially examined this structural zone, there is little assay data available. A comprehensive investigation and re-interpretation of this target is required. Due to the delayed commencement of field operations on the Nabarlek Mining Lease in 2008, the proposed work program for 2009 will predominantly consist of finalising the 2008 program. RC drilling will test along the strike of the Nabarlek Shear attempting to test for 'blind' mineralised zones beneath a thin veneer of transported sands and/or subcropping Mamadawerre Sandstone. Aircore drilling will traverse across areas that have been poorly tested in the past attempting to outline zones of anomalism, structure and/or alteration that might identify new RC drilling targets.