Annual Technical Report Group Reporting GR359 Albarta North Project 1st February 2016 to 31st January 2017 Exploration Licences 27369, 28029, 29689 and 30793

Abstract

This is the second Group Reporting of Core Exploration's (CXO) Albarta North Project (GR359) comprising four exploration licences (EL's 27369, 28029, 29689 and 30793) which are held 100% by DBL Blues Pty Ltd a wholly owned subsidiary of CXO Exploration Limited. The project area is dominated by parts of the Aileron and Irindina Provinces as well as the Amadeus Basin. The basement in the area consists of sedimentary and igneous rocks of the Aileron Province of Palaeo-Proterozoic age (1865-1500Ma). The rocks have been metamorphosed to upper green-schist to lower amphibolite facies during the Strangways Orogeny (1740-1690 Ma). In previous years CXO has collected surface geochemistry on a number of tenements, collected IP and VTEM datasets over Mt Riddock and completed RC drilling at Copper Royals and Virginia targeting copper mineralisation. During this reporting year exploration work on the Albarta North Project has been limited whilst the company focused on its Lithium Projects in the Bynoe area of the Northern Territory. It is anticipated exploration work will recommence on GR359 during 2017 and will likely include soil geochemistry and geological mapping to assess base metals targets identified by the CSIRO study and assist generating new targets. CXO will have a focus on the lithium potential of the Arunta pegmatites, largely within the Barrow Creek-Anningie pegmatite fields. An assessment of the Albarta North pegmatites suggests most are of the REE style and therefore do not have potential for lithium. However, further field investigation would need to be completed to confirm this. EL 30793 also has come potential for hardrock-style uranium. The uranium market appears to be picking up and if this continues there may be impetus to begin exploration on this tenement in the coming year. This is likely to entail rockchip sampling and investigation of the uranium deposit style in the area.soil geochemistry and geological mapping to assess targets identified by the CSIRO study and assist generating new targets. As discussed above, CXO will have a focus on the lithium potential of the Arunta pegmatites.