ALCIDION GROUP LIMITED — Interim / Quarterly Report 2012

Apr 29, 2012

QUARTERLY ACTIVITIES REPORT

For the period ending 31 March 2012

NARACOOTA Resources Lt d

HIGHLIGHTS

Corporate Details

ASX code: NRR

Issued Shares 47,536,676

Options 5 Mill

Share Price $0.10

Market Capitalisation $4.8M

Cash (end of quarter) $1.6M

DIRECTORS

• First pass drill program at Hill 680 prospect completed returning multiple intersections of high grade gold mineralisation

• Better results include;

• 2m @ 8.98g/t Au; and

• 17m @ 3.71g/t Au, incl 2m @ 21.7 g/t Au

• Detailed aero-magnetic survey commenced; awaiting results

• Planning underway for next round of drilling

Steven Crabbe (MD) Stephen Woods John Stockley Wayne Fernie

COMPANY SECRETARY Daniel Hewitt

CONTACT DETAILS 75 King Street Perth WA 6000 PO Box 7044 CLOISTERS SQUARE WA 6850 T: (08) 9200 5858

www.naracoota.com.au

ABN 77 143 142 410

Naracoota Resources Limited (“Naracoota” or “the Company”) (ASX:NRR) is pleased to report its activities for the quarter ending 31 March 2012.

Hill 680

The focus of the quarter’s activities was on the completion and analysis of a first pass drill program on the Hill 680 gold prospect on the Horseshoe Range.

In the late 1980’s, Barrack Exploration drilled 15 RC drill holes along a 1.6km length of the Horseshoe Range to depths of up to 150m which encountered anomalous gold mineralisation along the entire length of the range tested. This drilling then focused on Hill 680 where 23 holes were drilled to an average depth of 93m encountering high grade gold.

This prospective host lithology continues along the range for a total of 4.5km within the Company’s tenements (100% gold rights).

Naracoota’s first pass drill program consisted of both diamond core (DD) and reverse circulation (RC) techniques with 259 metres of DD in two holes and 841 metres of RC in six holes for a total of 1,100 metres of drilling in eight holes completed.

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NARACOOTA Resources Lt d

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Figure 1: Location Map

Results

Numerous high grade gold intersections were encountered in the eight hole first pass drill program conducted by Naracoota Resources at the Hill 680 prospect including (see appendix 1 for complete list of significant results): -

• 2m @ 8.98g/t Au;

• 17 m @ 3.71 Au g/t including 2m @ 21.7g/t Au; and

• 4m @ 3.1g/t Au.

These results both confirm historic gold mineralisation encountered in limited RC drilling conducted in the late 1980’s by Barrack Exploration, and importantly expand upon the known mineralisation in this area. This gold mineralisation is open along strike and at depth.

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NARACOOTA Resources Lt d

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Figure 2: Drill hole location map with both historical and recent holes shown, along with selected highlights

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Figure 3: Cross-section through the Hill 680 Prospect along line 657570mE, looking west. Of note is the mineralisation cross-cutting the stratigraphy and the multiple mineralised structures. Detailed results set out in Appendix 1

QUARTERLY ACTIVITIES REPORT

NARACOOTA Resources Lt d

Airborne Magnetic Survey

The Company completed a detailed magnetic survey over the Horseshoe Project in the first two days of April. Data processing and interpretation is pending from its consulting geophysicists.

Hyperspectral Dataset

During the quarter Naracoota Resources acquired a HyVista hyperspectral survey dataset from a neighbouring company covering both the Horseshoe and Fraser Projects at negligible cost. This survey provides surface mineral and alteration mapping. An example of the resultant imagery is shown below in Figure 4.

The survey data shows alteration geochemistry consistent with an orogenic gold mineralising system. The strongest portion of the alteration is coincident with known mineralisation covering a length in excess of 1.6km, and can be traced at lower levels over a total length of greater than 4km.

Interpretation of the hyperspectral dataset is ongoing and will be combined with the magnetic data to assist in the generation of drilling targets.

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Figure 4: Hyperspectral image highlighting dolomite/chlorite alteration. Note the high level of detail visible, particularly between the Windlass to Swan and Brilliant prospects.

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NARACOOTA Resources Lt d

Next Steps

Naracoota is highly encouraged by the programs completed during the reporting quarter and is preparing for an active field season covering the remainder of the year. In the current quarter many of the background and target generating programs will be completed and planning advanced to commence drilling and other field checking of these targets.

Corporate

The Company advises that a claim from a drilling contractor, Drillwise Pty Ltd, was lodged against it during the quarter for an amount of $27,500 plus costs. The company believes strongly that this claim is without merit and will vigorously defend any action regarding it.

ENDS

Contact:

Daniel Hewitt Company Secretary Naracoota Resources Ltd T: (08) 9200 5858

Forward Looking Statement

This report may contain forward looking statements that are subject to risk factors which are based on Naracoota Resources’ expectations relating to future events. Forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside the control of Naracoota Resources, which could cause actual results to differ materially from such statements. Naracoota Resources makes no undertaking to update or revise the forward-looking statements made in this report to reflect events or circumstances after the date of this release.

Competent Persons Statement

Information in this report relating to exploration results is based on information compiled by Naracoota Resources’ Exploration Manager, Mr Chris Shaw, who is a member of the Australian Institute of Geoscientists. Mr Shaw has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the 2004 Edition of the ‘Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Shaw consents to the inclusion of such information in this report and the context in which it appears.

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NARACOOTA Resources Lt d

Appendix 1: Drill location and assay results, Hill 680 prospect first pass drilling.

Hole ID	Prospect	Easting	Northing	RL	Coord System	UTM zone	Azimuth	Dip	Hole Depth
HRDD001	Hill 680	657,601	7,183,069	680.00	MGA94	50	0	-60	105.7
HRDD002	Hill 680	657,579	7,183,067	675.00	MGA94	50	0	-60	152.7
HRRC001	Hill 680	657,539	7,183,101	675.00	MGA94	50	0	-60	120
HRRC002	Hill 680	657,564	7,183,086	675.00	MGA94	50	0	-60	156
HRRC003	Hill 680	657,627	7,183,073	676.00	MGA94	50	0	-60	120
HRRC004	Hill 680	657,561	7,183,118	669.00	MGA94	50	0	-60	150
HRRC005	Hill 680	657,573	7,183,137	665.00	MGA94	50	0	-60	120
HRRC006	Hill 680	657,520	7,183,086	665.00	MGA94	50	5	-65	175

Hole ID	m From	m To	Intercept	Auppm
HRDD001	58	61	3	1.09
HRDD001	71	73	2	1.02
HRDD001	94	103	9	1.71
incl	94	95	1	7.63
HRDD002	70	76	6	1.08
incl	70	71	1	4.60
HRDD002	117	121	4	1.07
HRRC001	75	83	8	0.77
HRRC001	88	95	7	0.80
Incl	88	92	4	1.08
HRRC001	103	112	9	1.46
HRRC002	10	12	2	0.69
HRRC002	70	71	1	2.91
HRRC002	70	74	4	0.9
HRRC002	79	83	4	0.42
HRRC002	95	109	14	0.36
HRRC003	84	97	13	2.00
incl	85	87	2	8.98
HRRC004	0	14	14	0.23
HRRC004	22	56	34	2.17
Incl	22	39	17	3.71
Incl	22	24	2	21.7
HRRC004	86	88	2	0.37
HRRC004	90	92	2	0.69
HRRC004	142	145	3	1.72
HRRC005	0	79	79	0.42
Incl	7	18	11	1.43
Incl	7	11	4	3.1
and incl	21	25	4	0.66
and incl	28	31	3	0.75
and incl	33	38	5	0.43
and incl	50	55	5	0.38
and incl	70	72	2	0.45
HRRC006	96	100	4	0.68
HRRC006	124	128	4	0.70

Notes:

1. Results are reported using a 0.3ppm cut-off, except those in italics which use 0.1ppm cut-off

2. Minimum intersection length reported is 1m >0.5ppm, or 2m >0.3ppm

3. Maximum internal dilution is 2m <0.1ppm

Results are reported as down-hole length Assay method is fire assay with 25 gram charge