EL 26981 Annual Report 23 July 2012 to 22 July 2013

Abstract

EL 26981 forms part of Fertoz Pty Ltd's Winnecke Project which consists of 3 granted exploration licences (EL 26978, EL 26981, EL 26844) covering 2,651 km2 in the Wave Hill area of the Northern Territory, see figure 2. The area is considered to be prospective for phosphate mineralisation. A voluntary 46% reduction of the licence occurred at the end of the third year and the area was reduced from 440 to 237 graticular blocks. The Winnecke project was sold to FSL Corporation Pty Ltd in May 2013. The tenements are in the process of being transferred to the new owner who is keen to implement a drill programme to continue to explore for phosphate. A waiver has been sought not to undertake a mandatory further 50% reduction in area at the end of the fourth year.