Combined Annual Report for EL 24899, EL 24900, EL 24901, EL 24902, EL 24903, EL 24904, EL 24913, EL 24914 and EL 26045 Pedirka Basin Project for the period ending 8 August 2010

Abstract

This Group Annual Technical Report for Exploration Tenures EL 24899, EL 24900, EL 24901, EL 24902, EL 24903, EL 24904, EL 24913, EL 24914 and EL 26045 provides a summary of the activities undertaken on the permit since September 2009, including any results produced by these activities. These tenures were granted on 10 August 2006,8 September 2006 and 13 November 2006. Tri-Star Energy Company is the sole titleholder and the operator of these tenures. Extensive field mapping and outcrop sampling was also undertaken, with the samples being sent to a laboratory (ALS Mineralogy) for assay, in order to enhance Tri-Star's understanding of the stratigraphic section, particularly the interaction between the De Souza Sandstone, Crown Point Formation, and Purni Formation. The earlier surface and seismic activity was initially undertaken in previous years to determine the location of the Permian coals within the Purni Formation as they approach the basin edge, but the subsequent surface survey was expanded to include mapping of an ironstone anomaly found in outcrop at the surface. Upon receiving the assay results of the ironstones, Tri-Star commissioned a third party study to evaluate the ironstone discovery. The report concluded that while early results indicated a large potential ironstone deposit, a drilling program targeting the deposit was necessary to evaluate the discovery. Tri-Star Energy Company's initial drilling program for coal has been revised and incorporates a drilling program designed to identify parameters and qualities of the ironstone deposit. lt was on receiving the encouraging results from Tri-Star's sample analysis that Tri-Star realised a need to revisit previous geological and geophysical data, particularly in respect of the tenures covering the north east of the project area. Tri-Star spent considerable time in investigating and re-analysing the seismic data, water bores and other geological and geophysical data over the tenure area. The data was highly promising and has therefore caused Tri-Star to revise and improve the original drilling program, to incorporate the ironstone deposit. Given the recent encouraging field data received from Tri-Star's exploration activities and delays in contractor availability, a change in work programme will be required to determine the structure of the newly discovered ironstone formation, as well as continue evaluating the coal as it approaches the surface. The ironstone formation, located in between the De Souza and Crown Point Formation, is believed to be temporally contemporaneous with the deeper Permian Purni coals to the east, which are also of great interest to Tri-Star. The fifth year of the term will focus on addressing these issues with a further expanded seismic program of 82 km in length and gathering core data through a revised drilling program that focuses on both the coal and iron formations to assess their potential mineability.