Nabarlek ML Project MLN 962 Annual technical report for the period 23 March 2010 to 22 March 2011

Abstract

Nabarlek Mineral Lease is located in the western portion of the Arnhem Land Aboriginal Reserve, 28km east of the Gunbalanya (Oenpelli) Aboriginal Community and approximately 300km east of Darwin. MLN 962 contains the Nabarlek Uranium Mine which historically produced a total of 24.4 million pounds U3O8 at an average grade of 1.84% U3O8 (40.5 lb/tonne U3O8) between 1978 and 1988. Uranium Equities Limited acquired the mine lease with the purchase of Queensland Mines Pty Ltd in mid-2008. UEQ believes that the region provides outstanding potential to discover additional economic high grade uranium mineralisation in the immediate vicinity of the historical mine. UEQ has undertaken a significant exploration drilling campaign during the reporting period, consisting of 85 RC holes for 7,511m and 305 Aircore holes for 5,024.5m. The drilling identified three anomalous areas of interest. During the drilling campaign, a total of 4776 samples were collected and assayed by a portable Niton XRF Analyser. A total of 930 samples were sent to NTEL for laboratory assay. Anomalous Uranium values were intersected at three prospects. At the Bullroarer prospect the best intersection was in hole NMLA320 with 1m at 1580ppm U3O8 from 12m. At the Boomerang prospect the best intersection was NMLR106 with 2m at 1465ppm U3O8 from 55m and at the Clapstick prospect the best intersections were in NMLR115 with 11m at 1138ppm U3O8 from 21m and 8m at 1014ppm U3O8 from 46m.