Annual Technical Report EL 28900 for period ending 4 March 2015

Abstract

The Chandler Project consists of six exploration licenses held by Tellus Holdings Ltd ('Tellus'), located in the Amadeus Basin, approximately 130km south of Alice Springs. This annual report relates to one of the exploration licences; EL 28900 Eastern Railroad for the reporting period ending 4th March 2015. The Chandler Project is targeting subsurface salt deposits to assess potential evaporitic mineralisation within the Amadeus Basin. Two known salt units are present in the Chandler project area, namely the Chandler Formation and the deeper Gillen Salt Member. Exploration activities to date indicate a significant thickness of massive to semi massive halite exists within the Chandler Formation at a depth of approximately 700-1000m. During the reporting period Tellus completed a diamond drilling program on nearby tenement EL 29018. Core sampling collection and wireline logging were completed. Geochemical and mineralogical analysis results were positive confirming massive halite unit. The results from this drilling program were used to reinterpret seismic over the project area and assist in mine planning studies.