Charley Creek GR086 Combined Annual Report for the period 7 February 2016 to 6 February 2017 ELs 24281, 25230, 27283, 27358, 27359, 28154, 28155, 28224 and 28226

Abstract

This Combined Annual Report covers the subject licences held by Crossland Nickel Pty Ltd and currently operated by Crossland Strategic Metals Limited (Crossland). Crossland is in a Joint Venture arrangement with Essential Mining Resources Pty Ltd (EMR) The project is centred approximately 95 km WNW of Alice Springs. 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. The focus turned to Rare Earth Element (REE) exploration in 2010 following further analytical work on drill hole samples. The past year has seen a continuation of Crossland's low level of expenditure. This situation eventuated due to the extended time required to formulate a 2016-2017 work program and budget that was acceptable to the new joint venture partner. Some technical problems surrounding the past sampling procedures and pilot plant testing became apparent to management while reviewing the database. Instead of the planned drilling, a re-sampling program was recommended and commenced, utilising existing stored sample material from previous Aircore drilling programs. The samples were submitted for additional metallurgical work, pilot plant testing and assay. The testwork results were very favourable with the potential to positively impact the economics of the project.