Annual Exploration Report for EL 24715 Mount Masson for the period 1 March 2012 to 28 February 2013

Abstract

The activities on EL 24715 during the reporting year consisted of: Two-hundred and twenty-five (225) Air Core (AC) drill holes specifically targeting the goethite iron ore mineralisation near the southern end of the tenement, for 13,115 metres; Establishment of a remote exploration camp during the dry season to accommodate Territory's Exploration staff and the drillers (Drillwest) for the AC drill program; Field mapping and reconnaissance visit to a goethite-hematite outcrop (New Prospect) where nine (9) rock-chip samples were taken; and Compilation of a large MMP that included EL 24715, which incorporated exploratory drilling and geological reconnaissance works. Drilling during the reporting period occurred at the following prospects: K19, Buffalo Ridge, Nicole, Katrina, Debbie and Porcupine. The drilling seems to indicate goethite enrichment that would require further investigation at 5 of the 6 prospects (i.e. excluding Debbie). It is recommended to complete an in-house evaluation of the extensive AC drill program completed during the 2012-13 reporting period, which also consists of resource modeling studies (non-JORC compliant as AC drilling only). Based on this, additional Air Core / RAB drilling of target areas may be conducted in the next reporting year.