Nabarlek ML Project MLN 962 Annual technical report for the period 23 March 2009 to 22 March 2010

Abstract

Nabarlek Mineral 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. UEQ has undertaken a significant exploration campaign during the reporting period, including a 72 station radon-etch trial, collection of 774 gravity stations and drilling of 37 RC holes (for 5034m). The drilling primarily tested interpreted fault offsets and strike extensions of the Nabarlek mineralisation in the immediate mine area. During the drilling campaign, a total of 1808 samples were collected and assayed by a portable Niton XRF Analyser. Anomalous U3O8 was intersected at all prospects, with the best intersection being NMLR034, with 2m at 621ppm U3O8 from 72m. Further work will continue to try to identify faulted offsets of Nabarlek mineralisation as wellas test new targets within the lease area. Further exploration drilling campaigns are currently being prepared for the 2010 dry season.