Annual Technical Report for EL 27971 Bluebush for the period 20 October 2011 to 19 October 2012

Abstract

The Bluebush Project is located in the Amadeus Basin, approximately 120km south east of Alice Springs. Tellus Holdings consider this area to be prospective for evaporitic mineralisation. This annual report relates EL 27971 Bluebush for the reporting period ending 19th October 2012. Tellus is targeting subsurface salt deposits to assess potential evaporitic mineralisation within the Amadeus Basin. Two known salt units are present in the region, namely the Chandler Formation and the deeper Gillen Salt Member. In order to assess potential evaporitic mineralisation further; drilling, core sampling and geochemical analysis of samples is required. Additional seismic data acquisition and processing would improve data coverage over the project area giving greater confidence is the salt unit model. During the reporting period Tellus compiled the Mine Management Plan for exploration operations and completed the Chandler project prefeasibility study.