Nabarlek ML Project MLN 962 Annual Technical Report for the period 23 March 2011 to 22 March 2012

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. The Mineral Lease (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 mineral lease with the purchase of Queensland Mines Pty Ltd in mid-2008. Uranium Equities Limited believes that the region provides outstanding potential to discover additional economic high grade uranium mineralisation in the immediate vicinity of the historical mine. Uranium Equities Limited has undertaken a significant exploration drilling campaign during the reporting period, consisting of 47 RC holes for 4,935m. During the drilling campaign, a total of 1,887 samples were assayed by a portable Niton XRF Analyser and a total of 181 samples were sent to NTEL for laboratory assay. In addition, a detailed ground gravity survey was also completed. A total of 1,637 gravity stations were collected on a 50 x 50m grid pattern focussing on areas with shallow Kombolgie Sandstone cover.