Group Annual Report EL 24453, EL 24463, EL 24533, EL 24451, EL 24804, EL 24807, EL 30002, EL 30004, EL 30006 and EL 31098 Ngalia Regional Project period ending 6 February 2017

Abstract

EL 24453, EL 24463, EL 24533, EL 24451, EL 24804, EL 24807, EL 30002, EL 30004, EL 30006 and EL 31098 are part of the Ngalia Regional Project, a uranium exploration project area surrounding Energy Metals Ltd's (EME's) joint venture Bigrlyi Uranium Project (ERLs 46 to 55 inclusive). The Ngalia Regional Project is 100 percent owned by Energy Metals Limited while the Bigrlyi Project is a Joint Venture between EME with 53.3 percent (operator), Uranium Africa Ltd (UAL) with 41.7 percent and Southern Cross Exploration NL with 5 percent. The Bigrlyi and Ngalia Regional Projects are located in the Northern Territory, approx. 390 kilometres (by road) northwest of Alice Springs. Exploration work undertaken on these licences for the period 7 February 2016 to 6 February 2017 included the following programs: Desktop studies and compilation of historical data including newly granted tenement EL 31098; Continuation of interpretation of the 2014 high resolution airborne magnetic and radiometric surveys over the four non-contiguous areas within EL 24453, EL 24463, EL 30002, EL 30004 and EL 24451; Completion of CORE collaborative drilling and geophysics programs on EL 24451 including drilling of three rotary mud/diamond core holes and acquisition of 18 line-kilometres of passive seismic data; Processing of passive seismic data and image computation by consultants; Lead Isotope soil study interpretation over Camel Flat Deposit; and EME internal review of Ngalia Regional tenement geology, prospects, deposits and strategies. Due to budget restrictions as a consequence of difficult uranium market conditions, limited field work was conducted on Ngalia Regional Project tenements during the reporting period. The highlight of the period was the successful completion of a CORE collaborative drilling and geophysics program on EL 24451, which confirmed Energy Metals geological model for the eastern Ngalia Basin and resulted in the identification of a significant strike-length of buried, prospective Mount Eclipse Sandstone. Periodic checking of rehabilitated drill sites from 2015 was undertaken. The remainder of tasks completed were office based.