Combined Annual and Surrender Report Year 8 EL 25676 Lancelot Project for the period 23 August 2007 to 22 August 2015

Abstract

This combined annual and final surrender report outlines exploration activities undertaken by Merlin Diamonds Limited (MDL) on EL 25676 from the 23 August 2007 to 22 August 2015. This period represents eight years of holding this License. Previous exploration has included an extensive search by various companies for kimberlites that has recovered significant numbers of chromites and diamonds in loam samples. Over the eight years Merlin Diamonds Ltd has held the licence, a range of exploration activities have been undertaken including ground EM surveys, indicator mineral sampling, geochemical soil and rock sampling, mapping, drilling, and costeaning. No field-related exploration work was completed on EL 25676 during the final reporting period. However, the company conducted a detailed re-evaluation of the previous years of exploration work on the tenement in order to reassess themineral prospectivity of the Licence. On completion, this review recommended no further work and the EL 25676 licence was allowed to expire on 22 August 2015.