ALICE SPRINGS

Exploration in Alice Springs was carried out from 1976 to 1978, initially comprising fixed wing and follow-up helicopter magnetic and radiometric surveys, with several groups of anomalies identified for ground follow-up. Some government sponsored regional aeromagnetic and radiometric surveys have also been conducted which show widespread radiometric anomalies.

The company increased its land holdings by joint venturing on several surrounding areas held by Deep Yellow Limited. These areas host Tertiary basins that are prospective for carbonaceous shales and lignitic coal seams that may be enriched in uranium (such as at the Paddy's Jump Up uranium prospect within the tenements).

In February 2007, the Company commissioned detailed aeromagnetic and radiometric surveys, which recorded promising uranium anomalies. During 2007 air core drilling was conducted on the Ambalindum and Arltunga E.L.'s, where carbonaceous shales were located in the drilling (see attached photo). Uranium occurences within the Arltunga E.L. have already been defined by exploration carried out by Esso Australia Pty Ltd at Paddy's Jump Up.