Nabarlek Project - West Arnhem JV EL 10176 and EL 24371 GR062 Annual Technical Report for the period 2 September 2014 to 1 September 2015

Abstract

The Nabarlek Project- WAJV is located in the western portion of the Arnhem Land Aboriginal Reserve, 28km east of the Gunbalanya (Oenpelli) Aboriginal Community and approximately 300km east of Darwin. Nabarlek consists of two exploration licences, EL 10176 and EL 24371, with a total area of 383.8km2. Initially granted to Cameco Australia Pty Ltd (Cameco), the project is currently operated by Uranium Equities Limited (UEL) who is earning a 100% interest in the tenement. Work completed during the year comprised RC drilling campaign (6 drillholes for 1329m) testing the GC-11 Target and the immediate western extension of the N147 mineralisation. Significant results include: 2m at 2,354ppm U3O8 from 135m downhole in drillhole NAR7537; and 5m at 1,065ppm U3O8 from 169m downhole in drillhole NAR7535, both from dolerite at Prospect GC-11. Note that this mineralisation is blind at surface, and there is no other deep drilling between GC-11 and the west end of N147 (around 1.5km), and the GC-11 alteration system extends for a further 2km to the west, again with no deep drilling. Step out drilling, in both directions, is warranted. Significant hangingwall alteration, including illite, redox changes and illite- chlorite alteration, were observed in Kombolgie Sandstone in drillhole NAR7534, on the southern side of the GC-11 Target. This alteration appears unrelated to the dolerite hosted mineralization, and is typical of hangingwall alteration above an unconformity style uranium deposit. Follow up exploration is warranted. The GC-11 target, amongst a series of other targets, were generated through a review of historical spectral and multi- element geochemical data collected during previous drilling programs. The combined spectral and multi-element data were used to characterise and map mineral assemblages and alteration halos associated with uranium mineralisation in the ARUF. Given the success at GC-11, follow up work on other targets generated in this review is warranted. In addition, re-sampling of drill holes not previously measured for SWIR data should be completed, and the SWIR database be interpreted for sandstone hosted alteration signatures.