Second annual report on EL 25467 Batten McArthur River Project from 15 August 2008 to 14 August 2009

Abstract

EL 25467 'Batten' forms part of the McArthur River Project. The tenement is situated 675 kilometres southeast of Darwin in the McArthur Basin in the Northern Territory. The tenement was granted on 15 August 2007 and is registered in the name of Nicholson Iron Pty Ltd (Nicholson). Brumby Resources Limited (Brumby) entered into an option agreement to acquire a major holding in EL 25467 in March 2007. Exploration in the second year of tenure was carried out by Brumby and consisted of interpretation of a VTEM survey flown last year over the Batten prospect and RC drill testing of two VTEM conductors. The VTEM survey interpretation outlined eleven near surface sub-horizontal manganese-clay target zones. Two of these were tested with RC drilling of 17 holes for a total of 1,267m. Drilling intersected a series of multiple stacked manganese lenses varying in width from 1m to 6m over 1050m strike length. Anomalous manganese results include 5m at 4.7%Mn inc 1m at 8.4% Mn from 29-34m in RC001, 1m at 10.9%Mn from 41-42m in RC002 and 4m at 4.7%Mn inc 2m at 6.7%Mn from 35-39m in RC014. Further drilling is planned.