Charley Creek GR086 Combined Annual Report for the period 7 February 2015 to 6 February 2016

Abstract

This Combined Annual Report covers the subject licences as held by Crossland Nickel Pty Ltd and currently operated by Crossland Strategic Metals Limited. The project is centred approximately 95 km WNW of Alice Springs. The company was in a Joint Venture arrangement with Pancontinental Uranium Corporation of Canada since listing on the ASX in 2007. In late 2015 Pancontinental sold their interest to Australian-based Essential Mining Resources Pty Ltd. That company is now Crossland's JV partner. Crossland has been exploring the region since 2005, initially for ultra-mafic hosted nickel deposits, then uranium following recognition of the potential of the Teapot Granite, a highly fractionated granitoid, which has anomalously high uranium and thorium content. Following an aircore drilling program in 2008, which was carried out to check the potential for redox-style uranium in buried channels, some samples collected from the drill holes showed anomalous amounts of Rare Earth Elements (REE) when analysed. Extensive regional exploration has since shown that the alluvial outwash plains draining the foothills of the MacDonnell Ranges contain widespread accumulations of REE-bearing minerals derived from weathering of the various metamorphic rocks and the radioactively anomalous Teapot Granite. Despite regular minimal financing by Malaysian-based interests since 2013, the past year has seen a continuation of Crossland's difficulties in being able to fund the level of work required on the Charley Creek project area, given its size and therefore combined expenditure commitment. Now that a new Joint Venture is in place, it is expected that exploration and more advanced activities will re-commence.