Annual Report GR328 ELR 41 and ELR 45-55 Bigrlyi JV Project Walbiri JV Project Malawiri JV Project period ending 17 November 2016

Abstract

The Bigrlyi project includes ten granted Exploration Licences in Retention (ELR's 46 to 55 inclusive) located 390 kilometres (by road) northwest of Alice Springs. The project is a Joint Venture between Energy Metals Limited with 53.3% (operator), Northern Territory Uranium Pty Ltd (a subsidiary of Paladin Energy Ltd) with 41.7% and Southern Cross Exploration NL with 5%. Tenements ELR 41 (Malawiri project) and ELR 45 (Walbiri project), which are covered by separate Joint Venture agreements with Paladin Energy, were included in GR328 in late 2015. Due to the depressed uranium market and consequent budget restrictions, the Bigrlyi project continues to be on a care and maintenance footing with limited exploration works conducted during the current period. The highlight for this period was the completion, in late August 2016, of drill hole MARD004 at the Malawiri Deposit (ELR 41). Four zones of significant uranium mineralisation were encountered including a new high-grade discovery zone which returned an intercept of 8.1m at 1,789 ppm eU3O8 from 222.0m. Results were reported to the ASX in September 2016. Exploration and rehabilitation work undertaken for the period 18 November 2015 to 17 November 2016 included: An orientation soil lead (Pb) isotope study over a buried portion of the Anomaly-4 Deposit (Bigrlyi); Rehabilitation works monitoring and a DPIR Environmental Compliance Audit (Bigrlyi); Drilling of one Rotary Mud/Diamond tail hole at the Malawiri Deposit (ELR 41). Despite the global downturn in uranium and poor market conditions, Energy Metals remains committed to the discovery and definition of additional uranium resources within its Joint Venture projects and its wholly owned Ngalia regional tenements. Further exploration and development work on the Bigrlyi Joint Venture would require significant improvement in uranium market conditions.