Combined Annual Report for the Southern Project Area GR054 16 February 2014 to 15 February 2015

Abstract

Exploration Licences (EL's) and Mineral Authorities (MA's) in the Southern Project Area (SPA), 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 deposits). Giants Reef and Santexco are wholly owned subsidiaries of Emmerson Resources Ltd (Emmerson). This combined report records the exploration work completed on these tenements during the SPA Combined Reporting period from 16 February 2014 to the 15 February 2015. 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 centred around the re-evaluation of potential in-situ resources in the SPA, and more particularly the potential for extensions to these in-situ resources and potential for 'Goanna' style mineralisation, that is Mineralisation not detected by past explorers and their exploration techniques. During the process of compilation and validating the Chariot data for the reassessment of the in-situ resources at Chariot Emmerson identified drilling in the near mine environment that warranted follow-up due to its potential for another deposit to the east and/or west of the Chariot mine, or even extensions to the current in-situ resource and possible to the potential deposits to the east and/or west. Drilling was identified at Chariot East where historic drilling encountered 2.6m at 5.7g/t Au (CHDD003) and 1.3m at 34.4g/t Au (CHDD002). This area was the focus of drilling during the reporting period and was conducted on granted ML's. Emmerson drilled 12 RC holes (CHRC286 - 297) totalling 2,112m (of which 4 were used as pre-collars for diamond drill holes) and 4 DDH holes (CHDD283 - 286) totalling 948.4m. Results from the drilling was mixed with the some holes returning disappointing results and some holes returning anomalous gold and copper, but minimal only. As a result Emmerson has postponed future work until a technique can be found to assist in targeting at depth, i.e. if the trial seismic surveys help with interpreting geology and structure at depth, then may provide a technique to reassess the possibility of further resources at depth under Chariot. This will be assessed as trial seismic surveys and completed and interpreted firstly in the Gecko area to the north of the SPA.