EL 26698 Annual Report for year ending 20 November 2011

Abstract

Palace Resources Ltd ('Palace') applied for EL 26698 ('the Tenement') on the basis of encouraging detailed airborne geophysics on its EL25207 to the east which indicated the potential for unconformity/veinlike-type uranium in the district. The Tenement was granted on 21 November 2008. Despite less than encouraging drilling results on EL 25207 in 2010, Palace decided to persist with the area as the interpreted geology seemed so prospective for uranium and base metals. The Global Financial Crisis impacted Palace's financial resources and ground exploration in the Tanami has since been sporadic. The weak market interest in uranium decreased even more with the Fukushima nuclear plant incident and Palace needed alternative projects to attract capital. It took interest in a coal project in Indonesia and subsequently changed its name to Padang Resources in November 2011. JV partner, Excalibur Mining Corporation Ltd (EXM) carried out limited ground inspection of the two adjoining ELs 26698 and 26699 during the year without particular encouragement.