Partial Relinquishment Report for EL 31098 Agamba-Napperby, Ngalia Regional Project 28 July 2016 to 27 July 2020

Abstract

EL 31098 'Agamba-Napperby' islocated in theeastern part of the Ngalia Basin, Northern Territory, approx. 200 kilometres (by road) northwest of Alice Springs. The tenement is part of the Ngalia Regional Project, a uranium exploration project area in proximity to Energy Metals Ltd's (EME's) joint venture Bigrlyi uranium project (ELRs 46 to 55 inclusive), Walbiri project (ELR 45), and Malawiri project (ELR 41), all of which are located within the Ngalia Basin and environs. In the eastern Ngalia Basin the uranium-hosting, Palaeozoic-age Mt Eclipse Sandstone is extensively covered by Cenozoic sediments of the Whitcherry Basin, although there is minor Mt Eclipse Sandstone outcrop. The eastern Ngalia Basin has potential for undercover uranium resources hosted in buried Mt Eclipse Sandstone, similar to the known Malawiri and Minerva deposits, as well and buried surficial-style uranium deposits such as the Cappers and Napperby deposits. Data compilation since grant of EL 31098 has consisted of the review of historical technical reports including previous drilling results and the acquisition and interpretation of historical geophysical survey data. Most of EL 31098 has previously been surveyed using a variety of geophysical methods which include radiometric, magnetic, aerial electromagnetic (AEM), gravity and spectral surveying. Energy Metals recent exploration programs have primarily focused on desktop reviews and geological reconnaissance to enhance Energy Metals' understanding of the various Ngalia Basinuranium-vanadium deposits and how they form, to improve targeting and future discoveries. Investigations utilising AEM survey data from historical surveys and from Geoscience Australia's regional EFTF program were undertaken over parts of EL 31098 and the adjacent title EL 24451 during the tenure period; this included conductivity and inversion modelling with generation of interpretive imagery. Due to budget restrictions as a consequence of difficult uranium market conditions,no ground disturbingfield workwasconducted ontherelinquished areas of thetenement during the period. An internal review of Ngalia projects was conducted at the end of 2019, in which ground covering 52 blocks in the eastern part of EL 31098 was assessed as being non-prospective for uranium. The ground was flagged for partial relinquishment. The relinquishment was approved by DPIR on 25th July 2020 and implemented on the title anniversary reducing the EL to 29 blocks.