Combined Annual Report for the Eastern Project Area GR058 16 November 2013 to 15 November 2014

Abstract

Exploration Licences (ELs) in the Eastern Project Area (EPA), were acquired by Giants Reef Exploration Pty Ltd (Giants Reef) and Santexco Pty Ltd (Santexco) to search for Tennant Creek style iron oxide copper-gold deposits (IOCG). Giants Reef and Santexco are wholly owned subsidiaries of Emmerson Resources Ltd (Emmerson). This combined report records the exploration work completed on these ELs during the EPA Combined Reporting period from 16 November 2013 to the 15 November 2014.During the reporting period exploration activities were very limited due to corporate reasons, which entailed the seeking of a Joint Venture (JV) Partner or further funds to continue exploration in the Tennant Creek area and more specifically the EPA. Emmerson succeeded in securing Evolution as a Joint Venture Partner who has committed to spend $25M over the next 5 years. Following the formation of this JV, Emmerson commenced exploration activities in the EPA and focused on two areas, the Eldorado Area which encompasses the historical Eldorado Mine and its surrounding prospects, and the Billy Boy Area which encompasses a large greenfields area encompassing the historical billy boy prospect and also numerous other historical prospects. The exploration in the Eldorado Area is conducted predominately on MLC's 498, 499, 581, 582 and 583 and included both Reverse Circulation (RC) and Diamond (DDH) drilling, 11 RC holes for 2,285m including 3 RC pre-collars for 429m and 3 DDH holes for 298m including 1 wedge run of 15.7m. Further more successful exploration in the Eldorado titles has significant ramifications for exploration and prospectivity in the EPA, more specifically EL's 9403 and 10406 as both these EL's straddle the Eldorado Area. The exploration at the Billy Boy Area is conducted predominately on ML 22284 and included a detailed airborne magnetics survey and 269 RAB holes for 10,590m will not be reported in this report, but as it adjoins other EL's of the EPA and the detailed aeromagnetic survey that was flown over the Billy Boy area covered parts of a number of the EL's in the EPA, these will be mentioned in the appropriate sections of this report, further more successful exploration in the Billy Boy ML (ML 22284) has significant ramifications for exploration and prospectivity in the EPA. Emmerson also engaged Kenex Pty Ltd (Kenex) to construct a predictive model for the Tennant Creek Mineral Field and included all titles in the EPA. This product is expected to be completed and delivered to Emmerson in December 2014, therefore the results of this project and its end product will be reported in the next annual report of the EPA. Work was also completed on Matt Hill's PhD project, run by the Centre for Exploration Targeting (CET) out of the University of Western Australia (UWA), titled the 'Tennant Creek Project', the project is to build a 3D structural model of the entire Tennant Creek Mineral Field. Work conducted under this project involved field mapping, and software modelling of the observed and captured structural data, the completed work will be presented in early 2015.