Combined Annual Exploration Report, Rover Project, EL 24541, EL 24989, EL 25427, EL 25511 and EL 27039 year ending 7 March 2013

Abstract

Exploration activities for the year ending 7th March 2013 consisted of the following major programs: The trial of new, deep penetrating Induced Polarisation technology (IP) in an attempt to further crystallise targets associated with HeliTEM anomalies throughout EL 24989, EL 24541, and EL 27039; The complete update (and upgrade) of the Explorer 108 resource model in light of advances in the understanding of the geological setting of the Explorer 108 area, derived through advanced geophysical processing; Identification of the Curiosity target to the immediate south of Explorer 108 which is proposed for electrical geophysical testing and subsequent drilling follow-up in the coming period; Completion of 2 diamond drill holes at Rover 1 for 1,181m. Additionally Castile Resources Pty Ltd (Castile) advanced exploration decline studies for the Rover 1 Project inclusive of submission of the Rover 1 Decline Proposal to the Northern Territory Department of Resources. The resource upgrade at Explorer 108 was also released during the reporting period overall increasing the resource by 36% in tonnage, decreasing the Pb + Zn grade by 8% and increasing the Pb + Zn metal by 25%. Exploration work over the RCR for the year ending 7 March 2013 has reinforced Castile's view of the prospectivity of the broader Rover Project. Resource upgrades have potentially improved the economics of the Explorer 108 prospect, and Rover 1 continues along its path to development, with the decline proposal being submitted to the Northern Territory Department of Resources on the 4th April 2012. The 2012 Deep Penetrating IP survey has further enhanced Castile's understanding of appropriate vectors towards potentially economic Au-Cu mineralisation. Processing of the newly acquired IP has refined many exiting AEM anomalies, and in the coming season Castile plans to further examine their mineral potential drill testing highly ranked anomalies. The program will include assessing the potential for classical Tennant Creek style magnetic ore bodies as well for a new style of mineralisation away from typical magnetic targets.