Combined annual report for EL 24281, EL 25230, EL 27283, EL 27284, EL 27358 and EL 27359 Charley Creek Project 7 February 2010 to 6 February 2011

Abstract

This report covers exploration work carried out on the Charley Creek project during the 2010 field season. The Charley Creek Project area, initially comprised of EL 24281and EL 25230, now includes EL 27283, EL 27284, EL 27358 and EL 27359. EL 24281 and EL 25230 are located south of the Tanami road approximately 120 kms west northwest of Alice Springs and are centred about 32 km southwest of Milton Park homestead. EL 27358 and EL 27359 are separated from each other by an east-west distance of approx 3.5km, both of which are located to the east of EL 24281 with EL 27358 abutting EL 24281. EL 27283 and EL 27284 lie adjacent to each other and are located to the north of EL 25230, separated from it by a distance of approx 14 km. The exploration licences are held by Crossland Nickel Pty Ltd and operated by Crossland Uranium Mines Limited. The project area is considered prospective for uranium, REE, copper, nickel and platinum. EL 24281 and EL 25230 were granted on 7 February 2005 and 9 November 2006, respectively. EL 27283, EL 27284, EL 27358 and EL 27359 were all granted on 17 November 2009. Crossland is exploring the region with two uranium target styles in mind - the Rossing - style deposit in Namibia where primary and secondary uranium minerals occur interstitially between feldspars, quartz and biotite, and sedimentary deposits confined to the paleo-channels of buried drainage systems, which abundantly occur throughout the Charley Creek Project area. The Teapot Granite is a highly fractionated enriched granitoid, which has anomalously high uranium content averaging 32 ppm. Literature research on 'hot' granites by Crossland's consultants has confirmed high potential for the Teapot Granite to host economic concentrations of uranium. The extensive area of plains and related drainages to the north of the Teapot Granite are considered ideal host environments for secondary concentrations of uranium leached from the granites. The uranium could be hosted in calcrete deposits or occur in 'redox' zones, which can concentrate uranium dissolved in ground water. During the year Crossland embarked upon a program of exploration for Rare Earth Elements (REEs). This work was prompted by the recent significant price rise for this valuable group of commodities. The association of thorium with REEs was used in conjunction with airborne radiometric survey data, collected previously by Crossland as well as the freely available government data, to target areas for exploration. The initial prospecting program was followed up by a regional stream sediment sampling program and an auger / soil sampling program. A number of exploration activities were conducted in 2010. Activities undertaken on EL 24281 consisted of the following: Ground-based radiometric surveys covering an area of 4.7km2; and a total of 41 stream sediment samples were collected for processing and analyses. On EL 25230 activities undertaken included: Regional ground-based radiometric surveys covering an area of 30km2; Regional-scale geological mapping; Diamond drilling of 15 holes for 2165.4m; Regional prospecting with 68 samples collected for assay; A total of 119 stream sediment samples were collected for processing and analyses; and 400 auger/soil samples were collected for processing and analyses. On EL 27283 the following exploration activities were conducted: Research of existing literature; Geological reconnaissance; Airborne geophysical survey of the southern part of the tenement totalling 1841 line kilometres; and Collection of 42 stream sediment samples for processing and analyses. On EL 27284 exploration undertaken included: Research of existing literature; Geological reconnaissance; and collection of 3 stream sediment sampling for processing and analyses. Exploration done on EL 27358 included: Research of existing literature; Geological reconnaissance; and collection of 2 stream sediment sampling for processing and analyses. Exploration conducted on EL 27359 included: Research of existing literature; and Geological reconnaissance. The work completed this past year continues to indicate that the Charley Creek Project area has potential to host an economic uranium deposit. In addition work completed this past year has highlighted the potential for the project to host an economic rare earth element deposit, most likely of alluvial origin. Crossland remains committed to exploring and increasing the size of its holdings in the Charley Creek Project area and plans to spend in excess of $50,000 per exploration licence this coming year.