Combined Annual Report for the Lone Star Group MCC's 316 - 317 and 340 - 341 and MLC's 362 - 375, 530 and 606 - 616 1 January 2014 to 31 December 2014

Abstract

The titles of the Lone Star Group, were acquired by Giants Reef and Santexco to search for Tennant Creek style iron oxide copper-gold deposits (IOCG). Giants Reef and Santexco are wholly owned subsidiaries of Emmerson. This combined report records the exploration work completed on these titles during the period from 01 January 2014 to the 31 December 2014. Exploration activity conducted was 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 numerous other historical prospects. Work that was conducted over the Lone Star Group involved the continuation of the assessment with the aim of compiling a report to enable a determination on the correct transition of the Lone Star Group's ML's and MC's, the result of this review was the ranking of the Lone Star Area as a highly prospective region and would rank highly in a selection for the next areas to conduct HeliTEM surveys. The airborne magnetics survey flown to assess the Billy Boy area covered a portion of this title, the results have yet to be processed and interpretation of these results will begin in early 2015. Emmerson also engaged Kenex Pty Ltd (Kenex) to construct a predictive model for the Tennant Creek Mineral Field and included all titles in the Lone Star Group. This product is expected to be completed and delivered to Emmerson in Early 2015, therefore the results of this project and its end product will be reported in the next annual report. 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, but no direct mapping occurred within the Lone Star Group.