Nabarlek Project EL 10176 and EL 24371 GR062 Annual Technical Report for the period 2 September 2013 to 1 September 2014

Abstract

The Nabarlek Project is located in the western portion of the Arnhem Land Aboriginal Reserve, 28km east of the Gunbalanya (Oenpelli) Aboriginal Community and approximately 300km east of Darwin. Nabarlek consists of two exploration licences, EL 10176 and EL 24371, with a total area of 383.8km2. Initially granted to Cameco Australia Pty Ltd (Cameco), the project is currently operated by Uranium Equities Limited (UEL) who is earning a 100% interest in the tenement. Investigations during the year, consisted predominantly of an RC drilling campaign (23 drillholes for 2998m) testing the Coopers, Coopers South, U39 and U40 Prospect areas. The most significant result from the drilling was encountered at the U40 Prospect where drillhole NAR7520 produced an intercept of 7m @ 0.27% U3O8 from 46m. In addition, minor field reconnaissance was conducted throughout the project area. The Company is planning to conduct spectral analysis of all the drill chips from the recent drill program. When combined and interpreted with the multi-element analyses, the data will be used to map and characterise mineral assemblages and alteration halos associated with uranium mineralisation in the ARUF. The aim will be to quantify broad-scale zonation patterns which may provide vectors to mineralisation, and to identify proximal alteration assemblages where drilling may have just missed mineralisation. In addition, plans include a regional 'Mineral Systems Analysis' of the Alligator Rivers Uranium Province. Key outcomes will endeavour to produce a predictive metallogenic model for the Province, based on interpretation of architecture and geodynamic evolution, define regional-scale targets and if appropriate, high priority focused targets.