EL 23237 Mount Porter Annual report for the period 8 December 2009 to 7 December 2010

Abstract

A reasonably thorough understanding has been developed for the potential of this tenement to host economic deposits of iron ore and/or manganese mineralisation. Mapping conducted during 2007-2008 was reviewed and again ground-truthed during late 2009-10. The underlying geology is not particularly conducive to hosting or developing economic iron ore mineralisation of the Frances Creek style, owing to the absence of the Wildman Siltstone sequence in this general area. Preliminary discussions were held with Arafura Resources Ltd to discuss the return of the tenement, in accordance with an agreement entered into in January 2008. Pending the results of further detailed mapping and reconnaissance underway in early 2011, Territory will be in a better position to determine if drill targeting parts of the Koolpin Formation for iron ore and/or manganese mineralisation during the 2010-11 is warranted. If not, Territory will look to transfer this tenement back to Arafura Resources Ltd.