Group Annual Report EL 24451, EL 24453, EL 24463, EL 24807, EL 30002, EL 30004, EL 30006, EL 31098 and EL 31636 GR070 Ngalia Regional Project period ending 6 February 2018

Abstract

EL 24451, EL 24453, EL 24463, EL 24807, EL 30002,EL 30004, EL 30006, EL 31098 and EL 31636 are part of the Ngalia Regional Project, a uranium exploration project area surrounding Energy Metals Ltd's (EME's) joint venture Bigrlyi Uranium Project (ELRs 46 to 55 inclusive) all of which are located within the Ngalia Basin and environs. The Ngalia Regional Project is 100% owned by Energy Metals Limited while the Bigrlyi Project is a Joint Venture between EME, with a 53.3% interest (operator), Northern Territory Uranium Pty Ltd (NTU), with 41.7%, and Southern Cross Exploration NL (SXX) with 5%. The Ngalia Regional Project area is located in the Northern Territory, approx. 200 to 390 kilometres (by road) northwest of Alice Springs. Exploration work undertaken on these licences for the period 07 February 2017 to 06 February 2018 included the following programs: 1) GA-IP and PD-IP (induced polarisation) geophysical surveys; 2) AEM geophysical survey flown in conjunction with Geoscience Australia's Exploring for the Future regional program; 3) Anomaly and tenement reconnaissance; 4) Lead isotope and geochemical studies at Crystal Creek and Rankins Reward prospects; 5) Desktop studies and compilation of historical data for tenement EL 31098; 6) Prospectivity review, partial relinquishments, tenement surrender & ELR applications; 7) AAPA sacred site & heritage clearance surveys. The 2017 exploration program has focused on geophysical targeting of undercover uranium mineralisation utilising induced polarisation (IP) and aerial electromagnetic (AEM) survey methods. Gradient-array (GA-IP) and pole-dipole (PD-IP) induced polarisation surveys over three key western Ngalia Basin prospect areas were completed in September with final results received in November and interpretative work completed by year end. The IP methods are able to target buried, reduced pyrite-bearing beds (chargeable beds) prospective for Bigrlyi-style mineralisation. The following results were obtained: At the Walbiri South prospect, target units were found not to extend onto the southern limb of the Eclipse Anticline as previously predicted but prospective beds were found to be concentrated just north of the axial plane of the fold; In the Dingos Rest-Carnotite Hill corridor, a strong chargeable anomaly was detected in a tightly folded nose of an interpreted, buried syncline located to the south of known surface mineralisation; At the Yuendumu Fault West prospect the main thrust fault was located together with a chargeable anomaly suggestive of Camel Flat style mineralisation. These chargeable anomalies will be targeted for drill testing in a future program with planning underway in 2018. During the final quarter of 2017 an AEM survey was flown over parts of EL 24453 and EL 31098 in the eastern Ngalia Basin in conjunction with Geoscience Australia's Exploring for the Future Program. Geoscience Australia has advised that final data products from the survey will be available for targeting and interpretive work in early 2018 (estimated April). In October 2017 AAPA sacred site clearance surveys and variation surveys were completed on EL 24453, EL 24807 and EL 24463 with issue of Authority Certificates and Authority Certificate Variations in late 2017. The clearances allow Energy Metals to undertake future drilling programs on a number of priority target areas. Due to budget restrictions as a consequence of difficult uranium market conditions, no ground disturbing field work was conducted on Ngalia Regional Project tenements during the reporting period.