Epenarra Project Combined Annual Report for the period 1 January 2011 to 31 December 2011 EL 26818, EL 26775, EL 26776, EL 27085, EL 27554 and EL 27072

Abstract

The Epenarra exploration licenses EL 26818, 26775, 26776, 27072, 27085 and 27554 lie approximately 50-210km to the south-east of the township of Tennant Creek. The package of tenements consists of a total of 1194 blocks and covers an area of 3733km2. The licenses were granted to Northern Minerals in 2008, 2009 and 2010 for a period of 6 years. Northern Minerals Limited is targeting Cambrian phosphorite deposits within the Georgina Basin. The Cambrian Gum Ridge Formation has been interpreted to underlie parts of the license areas and is considered to be a potential host for phosphate mineralisation. The Middle Cambrian Wonarah Formation, which underlies EL 27085, hosts significant regional phosphate resources. Regional bushfires burnt throughout August 2011 which delayed on-ground activities scheduled for that time. In addition, mustering activities (aerial and on-ground) surrounding the Epenarra Homestead located west of EL 27085, during August 2011 further postponed exploration. A second attempt in mid-November also had to be abandoned due to heavy rains in the region. As a result, it was not possible to complete the proposed mapping, sampling and drilling activities that were scheduled for 2011. It is anticipated that the proposed exploration activities will be undertaken in 2012.