Charley Creek GR086/09 Combined Annual Report for the period 7 February 2017 to 6 February 2018

Abstract

This Combined Annual Report (GR086/09) covers the seven subject licences currently held by Crossland Nickel Pty Ltd and operated by Crossland Strategic Metals Limited (Crossland) as part of the Charley Creek REE Project. Crossland is in a Joint Venture arrangement with Essential Mining Resources Pty Ltd (EMR) The project area 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 on-site expenditure. Company management has concentrated on improving the projects economics by investigating low cost mining systems and changes to the process flowsheet. The team has continued enquiries with suppliers and consultants regarding innovative solutions for the operation and focused on technical/engineering planning forth-coming in the 2018 year. This would include completing scope of work documents for the 2018 Scoping Study update and 2018 JORC resource model update. The drill database required substantial improvements to allow the company to share data with a change in competent person. The 2017 operational year has also seen Crossland management focusing on the purchase of the JV company, Essential Mining Resources Pty Ltd and clearing the debts that had been accumulated from private sources. These borrowings have covered the operating costs of the company over the previous several years. Crossland instituted changes to the accounting system by migrating to a cloud service and reviewed service contractor costs. The administration of the company has been reduced, overhauled to decrease costs and reliance on long-standing individuals. As part of rationalising it's expenditure, the company has continued to reduce the size of its project landholdings with reductions and surrenders of its exploration licences.