AMERICAN URANIUM LTD — Interim / Quarterly Report 2009

Oct 29, 2009

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ASX/Media Release

30th October, 2009

ACTIVITIES REPORT SEPTEMBER QUARTER 2009

• Joint Venture – Artemis Resources Limited

• Placement – 3 Million Shares at 10 cents

• Indonesian Subsidiary Incorporated – PT GTRI Mining

• Cash at Bank 2.082 Million

JOINT VENTURE

During the quarter, GTI Resources Ltd (GTI) reached agreement with Artemis Resources Limited (ASX code: ARV) to enter into a joint venture over the Company’s Cambridge Creek, Yangibana and Bali Hi Projects (“Projects”)

The key terms of the agreement, which are subject to the successful completion of due diligence by ARV, are as follows:

• A non refundable cash deposit (received) of $50,000 to allow ARV a 30 day exclusivity period;

• On the completion of due diligence within 30 days, and ARV’s election to proceed with the joint venture, further consideration will be immediately payable by ARV to acquire a 70% interest in the Projects as follows:

• A further cash payment of $100,000; and

• The issue of 3 million fully paid ordinary shares in ARV to GTI (to be held under voluntary escrow for 12 months);

• ARV will meet all first year minimum expenditure commitments in relation to the Projects (totaling $205,000) to maintain their 70% interest in the Projects;

• GTI will have a free carry interest until the commencement of any bankable feasibility study, at which time GTI may elect to contribute based on the percentage interest in the joint venture held by GTI at that time.

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GTI Resources Ltd ABN 33 124 792 132 13 Colin Street PO Box 287 West Perth WA 6005 West Perth WA 6872 Phone: +61 8 9215 0400 Facsimile: +61 8 9321 3628 www.gtiresources.com.au

2.

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SHARE PLACEMENT

During the quarter the Company announced the successful completion of a share placement to a sophisticated investor to provide additional working capital to further strengthen the Company’s financial position and to target new opportunities.

The placement, comprising 3 million ordinary shares at an issue price of 10 cents each, was made to J & I Resources Pty Ltd.

Post placement, the Company has approximately 38.0 million ordinary shares on issue.

INDONESIA

The Company continues to review projects in Indonesia and a number of other overseas countries.

Projects under review for potential acquisition include coal, gold, laterite nickel and a range of other commodities. Site visits were conducted, including evaluation of several operating mines.

GTI is continuing to enlarge its network of contacts in Indonesia and elsewhere in order to identify a lead project suitable for participation and growth of the company. A subsidiary has been incorporated in Indonesia to facilitate this process.

WESTERN AUSTRALIAN PROJECTS

Planning of field exploration continued for the recently granted Silver King project, near Nanutarra in the Ashburton region.

Joint venture discussions were completed on Yangibana, Cambridge Creek and Bali Hi projects. No field work was carried out on GTI’s Western Australian tenure during the period.

Murray McDonald Executive Chairman

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GTI Resources Ltd ABN 33 124 792 132 13 Colin Street PO Box 287 West Perth WA 6005 West Perth WA 6872 Phone: +61 8 9215 0400 Facsimile: +61 8 9321 3628

www.gtiresources.com.au

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity
GTI Resources Ltd
ABN 33 124 792 132	Quarter ended (“current quarter”)
33 124 792 132	30 September 2009

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date (9 months) $A’000
	- (152) - - (198) - 24 - - -	- (425) - - (467) - 84 - - -
	(326)	(808)
Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - - - 25 - - - -	- - - - 42 - - - -
	25	42
	(301)	(766)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(301)	(766)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (capital raising costs) Net financing cash flows	300 - - - - -	300 - - - - -
	300	300
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	(1) 2,083 -	(466) 2,548 -
	2,082	2,082

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		169
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Payment of directors’ salaries, superannuation, consulting fees, accountancy and corporate services during the quarter.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

N/A

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest N/A

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development		$A’000
			150
			-
Total			150
Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. 5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (term deposits) Total: cash at end of quarter(item 1.22)
	Current quarter $A’000		Previous quarter $A’000
	2,082		83
	-		-
	-		-
	-		2,000
	2,082		2,083

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	E08/1792	Application granted	0%	100%

• See chapter 19 for defined terms.

Appendix 5B Page 3

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	38,000,003	38,000,003
	3,000,000	3,000,000	10 cents	10 cents
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	5,500,000 4,500,000 125,000 125,000	- - - -	Exercise price 30 cents 40 cents 20 cents 30 cents	Expiry date 19/12/09 19/12/11 30/06/11 30/06/11
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act.

• 2 This statement does give a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 30[th] October 2009 (Executive Chairman)

Print name: Murray McDonald

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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• See chapter 19 for defined terms.

Appendix 5B Page 5

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