Exploration Activities Completed for MLN 1163 reporting period 24 March 2011 to 23 March 2012

Abstract

MLN 1163, is subject to an agreement between Territory Iron Pty Ltd and tenement owners Compass Resources Ltd (90%) and Guardian Resources Ltd, (10%) whereby Territory Iron has the right, subject to certain royalty terms, to explore, mine and purchase iron ore from Compass/Guardian. Geological mapping within the Yarram Project Area was carried out over the period 23rd to 26th January 2012 by an independent geological consultant. The intention of the mapping was to assist in the interpretation of previous results that have been obtained in earlier drilling programs, and to recommend further exploration targets. The mapping indicated that mineralisation occurs in a series of brecciated siltstone, shale and dolostone horizons in the Coomalie Dolostone Formation. The breccias are composed mainly of goethite/limonite and are frequently cored with lenses of hematite. The mineralised zones appear to be associated with faults trending approximately southwest. The mapping was done by collecting geological data on walking traverses in the field followed by photo-interpretation of the available orthophoto. Rock-chip samples were collected at preferred sites.