Group Annual Report EL 24453, EL 24463, EL 24533, EL 24451, EL 24806 and EL 24807 GR070 Ngalia Regional Project period ending 6 February 2014

Abstract

Exploration work undertaken on these licences in the reporting period involved an expenditure of over $4M and included the following programs: A total of 228 RC holes for 25,875m, including 206 holes for 22,938m within EL 24453, and 22 holes for 2937m within EL 24533; Geochemical assay of drill spoil samples from the above drill programs for uranium and vanadium; Rehabilitation of drill sites; Total of 22.3 km2 of gradient-array induced polarisation (GA-IP) gridding at six prospects; and Completion of JORC compliant resource estimates for the Anomaly 15 East, Camel Flat and Bigwest deposits. Energy Metals remains committed to discovering satellite ore bodies within its wholly owned Ngalia regional tenements, to complement planned production from the Anomaly 4, 15 and 2 deposits within the Bigrlyi Joint Venture. Highlights of the 2013 season include adding 626 tons of U3O8 to EME's resource inventory across three separate deposits including discovery of the high grade western zone at A15E and the Bigwest discovery. Bigwest still holds scope for upgrade, some drill intersections were very encouraging and its strike length is considerable. The northern redox boundary, equivalent to Biglryi's strongly mineralised northern redox zone (Units C-D) has not yet been successfully tested due to problematic drilling conditions. Probably more important was the successful use of GA-IP gridding to delineate redox boundaries. It has been established as a proven technique for testing of favourable lithologies under cover. Although results may be ambiguous (i.e. depth of weathering is often unclear and redox mottled sandstone may return 'false' chargeability anomalism), target zones-corridors of reduced stratigraphy can be narrowed down to several hundred metres.