Annual Report EL 29018 North Charlotte for period ending 11 April 2015

Abstract

The Chandler Project is located in the Amadeus Basin, approximately 130km south of Alice Springs. This annual report relates to EL 29018 North Charlotte for the reporting period ending 11th April 2015. The tenement is wholly owned by Tellus Holdings Ltd. 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. Tellus completed a drilling program within EL 29018 to confirm depth and thickness of Chandler Salt Formation. Two diamond drillholes were completed with a total of 1937m drilled. Excellent core recovery was achieved throughout the holes. Geochemical and XRD analysis results confirmed the high grade halite deposit. During the reporting period the wireline and stratigraphic information resulting from the drilling program were used to update the seismic interpreted geological model over the project area and assist in mine planning studies. Salt pilot processing test work commenced for wet and dry salt processing. EIS studies for Chandler Project are continuing. A water investigation program is planned in conjunction with geotechnical drilling as part of the feasibility studies and will commence in May 2015.