Annual report EL 23824 Millers for the period 9 February 2010 to 8 February 2011

Abstract

The following report describes work completed on tenement EL 23824 by Territory Resources Limited from 9 February 2010 to 8 February 2011. EL 23824 is held as a joint-venture tenement, with Territory Resources Ltd (51%) as majority holder and tenement manager, and Softwood Plantations Pty Ltd (49%) holding a minority interest. Australasia Gold Ltd originally had the gold exploration rights over the tenement, but have recently withdrawn their interest and it has reverted back to Softwood. The activities on EL 23824 during the reporting year consisted of: Ground gravity geophysical surveying: this tenement was part of a larger geophysical review that re-interpreted all the historical and recent geophysical survey data available in the Frances Creek region over Territory Resource Ltd's tenement holdings. Geophysical targets for iron mineralisation were identified within EL 23824; Review of the historical Mineral Resource estimation parameters for the Millers manganiferous goethite deposit (in-house); Generation of a full set of new drilling cross sections for the entire Millers deposit ahead of planning for a detailed and comprehensive large-diameter metallurgical diamond drilling programme at the Resource in 2011. The Millers deposit is fully covered by the Mining Tenement application ML 26429.