Combined Annual Report for the Southern Project Area GR054, 16 February 2011 to 15 February 2012

Abstract

Exploration Licences and Mineral Authorities in the Southern Project Area, were acquired by Giants Reef Exploration Pty Ltd and Santexco Pty Ltd to search for Tennant Creek style iron oxide copper-gold deposits (IOCG deposits). Giants Reef and Santexco are wholly owned subsidiaries of Emmerson Resources Ltd. This combined report records the exploration work completed on these tenements during the SPA Combined Reporting period from 16 February 2011 to the 15 February 2012. Exploration activities were limited within the SPA during the reporting period, due to Emmerson's focus at the 'Proof of Concept' drilling in the Northern Project Area (NPA). The main focus in the SPA was at the Nebbiolo and Analytic 1 prospects within EL's 23284 and 23285. Exploration activities conducted consisted of; Exploration drilling in EL 23284 and EL 23285; further application of the Vector Residual Magnetic Intensity (VRMI) application which was applied to all tenure in the SPA, but only the tenure with the most clear anomalism has been assessed in detail. The VRMI has proved to be highly successful to date. The Red Bluff Area was identified to contain potential ironstone packages, following drill testing this was confirmed with thick ironstone packages intersected. This success has raised the integrity of the VRMI technology and allows Emmerson to more accurately determine the prospectivity of its tenure, identify potential ironstones, with potential to lead to economic mineralisation discoveries; and completion of a HeliTEM survey over the Chariot TC8 corridor, which include all or parts of EL's 28775, 23905, 23285, 23286, 26801 and MA 23236. This data has yet to be assessed, interpreted or modelled in any great detail, due to the focus on 'Proof of Concept' drilling in the NPA, which ultimately proved very successful. Emmerson will be analysing, interpreting and modelling the HeliTEM data from the SPA over the next reporting term with the aim of generating targets for drill testing.