Annual report EL 24451 Ngalia Regional Project period ending 5 February 2010

Abstract

EL 24451 is part of the Ngalia Regional Project and is located 200 kilometres (by road) northwest of Alice Springs. The Ngalia Regional Project is 100% owned and operated by Energy Metals Limited. The Bigrlyi Project located approximately 150kms along strike to the west northwest, is a Joint Venture between Energy Metals Limited with 53.3% (operator), Valhalla Uranium (a subsidiary of Paladin Resources Ltd) with 41.7% and Southern Cross Exploration NL with 5%. The Bigrlyi camp and core yard faculty is used to support the entire Ngalia Regional Project. The Malawiri Prospect is located in the southeast of the Ngalia Basin, on EL 24451, and approximately 200 kilometres northwest of Alice Springs. Exploration was carried out on the Malawiri Prospect between 1978 and 1982 in a Joint Venture between Central Pacific Minerals, Urangesellschaft GmbH and AGIP, following discovery of the Minerva uranium deposit by AGIP along strike. In May 2005 Energy Metals acquired a 53.3% interest in, and assumed management of, the Bigrlyi project through the purchase of the interests of CPM and Yuendumu Mining Company NL. In September 2005 Energy Metals listed on ASX after raising $3m, primarily to fund exploration at the Bigrlyi and Ngalia Regional Projects. Exploration undertaken in the period 06 February 2009 to 05 February 2010 included: Regional Mapping and GPS surveying, on going database compilation of historical exploration, interpretation of airborne geophysical data including magnetics, radiometrics and topography (DTM), aircore drilling (310 holes for 3070m) of uranium channel anomaly within calcrete/palaeochannel setting, DGPS surveying, downhole gamma probing and geochemical assay, encouraging results up to 4.4m at 579 ppm U3O8 and rehabilitation of drill program.