Group Annual Technical Report for EL 27972 Charlotte and EL 27974 Central Railroad for the period ending 20 September 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 group annual report relates to two of the exploration licenses; EL 27972 Charlotte and EL 27974 Central Railroad for the reporting period ending 20th September 2014. 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. Exploration activities by Tellus over the Chandler Project have included initial assessment of open file geochemical and geophysical data, detailed review of petroleum well data, seismic interpretation and modelling, geochemical analysis and mineralogical investigation of core samples from previously drilled petroleum wells and from two drillholes completed by Tellus in 2013-2014. During the reporting period Tellus progressed feasibility and environmental activities, to support mine planning studies and environmental impact statement (EIS) studies.