Annual report EL 24307, EL 24665, EL 24944, EL 25672, EL 26759 and EL 26992 Roper Bar Project for the period 16 April 2009 to 15 April 2010 Year 2

Abstract

The project is a joint venture between Western Desert Resources Ltd (WDR) and the Itochu subsidiary IMEA Exploration and Development of Australia Pty Ltd (IEDA). The project consists of six granted exploration licences (EL 24307, EL 24655, EL 24944, EL 25672, EL 26759 and EL 26992). The tenements are located about 240km east of Mataranka in the Gulf Country of the Northern Territory. Exploration is being undertaken on hematitic iron ore within the Sherwin Formation. The Roper Bar project is situated within the Bauhinia Shelf of the McArthur Basin. The McArthur Basin is an intracratonic platform basin of Palaeo to Mesoproterozoic age. Exploration within the area has concentrated on the Sherwin Formation within the Maiwok Subgroup of the Roper Bar Group. Exploration activities carried out during the reporting period include aerial photography acquisition, reconnaissance mapping and rock chip sampling, over 10,000m of RC percussion drilling, over 450m of diamond drilling, wireline logging, airborne geophysics, ground geophysics, mineralogical and metallurgical work. Resource estimates were completed in three areas. A total of 116 million tonnes at an average grade of 39% Fe were reported as Inferred Mineral Resources, including a possible DSO resource of 7 million tonnes at 59% Fe. Further resource definition and exploratory drilling is planned for 2010. Mapping and rock chip sampling will be carried within the project area. Metallurgical testwork will be undertaken to finalise the process characteristics of the oolitic iron ore.