Harts Range Project Final Surrender Report for EL 24552 for the period 26 August 2005 to 25 August 2012

Abstract

Barfuss Corporation has conducted a substantial amount of non-invasive work on the Harts Range Project leases. Several prospect areas were identified in different areas of the licences. Investigations included analysis of available geophysical data, geological mapping, rock-chip sampling and ground spectrometer surveys. Several areas were identified as significantly prospective, requiring further investigation. Rock-chip assays include some highly anomalous results. Numerous areas have been subject to reconnaissance and more detailed investigations, including mapping, rock-chip sampling and ground spectrometer surveys. Identified mineralisation and anomalism includes copper-gold, rare earth elements (REE), uranium, thorium and nickel. This work is documented in detail in previous Annual Reports. Significant impediments to Barfuss' operations in recent years included a protracted legal dispute (2007-2009) with a (former) principal financial backer, and a very severe, near fatal, illness which afflicted Mr Uwe Barfuss from late 2010 to early 2011. Despite these, the company has progressed a range of negotiations with prospective investors or joint venture partners. An agreement signed with a South Korean corporation, which was to invest $12m on exploration of the Barfuss Harts Range project, has stalled, but discussion are on-going with the Merck Group (noted above), the Gutnick Network of Companies, Commissioners Gold Ltd, and several private investors (including an agreement to fund all expenditure requirements for the next two years). Barfuss failed to renew EL 24552 in 2012 due to an oversight and intends to re-apply for the licence area. The company has recently obtained a written commitment to invest $5 million in the Harts Range Project, but this may be dependent on re-acquisition of the EL 24552 area. Barfuss Corporation regards the project as highly prospective and is keen to resume significant exploration activity on it.