Reward Project Annual Report for the period 24 March 2011 to 23 March 2012 EL 27541

Abstract

This document is submitted as an annual report for the exploration licence EL 27541 which comprises a part of Teck's Reward Project. Exploration activities for this license year were impacted by a number of factors, including: wet season and issues with finding contractors and suppliers. EL 27541 forms part of the greater Reward Project area owned by Rox Resources. Teck Australia Pty Ltd signed an agreement that gives the option to earn 70% through exploration expenditure with an option to form a JV. Teck commenced research work on the area in March 2011. EL 27541 is prospective for SEDEX (sediment-hosted) style zinc-lead mineralisation. At the nearby Myrtle prospect, a significant SEDEX style zinc-lead deposit has been discovered and defines a resource of 43.6 million tonnes grading 4.09% Zn and 0.95% Pb. Work undertaken commenced with literature searches, database compilation, general and later in the year a heritage survey and a Falcon survey was conducted. Work by previous explorers identified significant anomalous zinc-lead mineralization within the Reward Project area. EM conductors and favourable geology may indicate prospective areas for SEDEX style zinc-lead mineralisation and will be investigated during the next tenement year.