CADOUX LIMITED — Interim / Quarterly Report 2010

Jan 30, 2011

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QUARTERLY REPORT FOR THE PERIOD ENDING 31 DECEMBER 2010

Exploration Highlights

• 35m width of uranium mineralized granite identified at Anomaly 22

• The presence of prominent thorium anomalies confirmed

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Figure 1

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REVIEW OF OPERATIONS DECEMBER QUARTER 2010

SUMMARY

During the December quarter at Yarlarweelor, the Company undertook a program of geophysical modelling of magnetic anomalies, sampling of various thorium, uranium and magnetic anomalies and tested zones of anomalously radioactive granite. At the Mt. James Creek project the Company initiated a sampling program and evaluation of previous exploration. YARLARWEELOR : Uranium project – WA (100% interest) The Yarlarweelor uranium project is located 125 km north of Meekatharra in Western Australia 2 and consists of two granted exploration licences covering an area of 656km .

As reported in the June 2010 Quarterly report, the Company confirmed the presence of significant primary uranium mineralisation in the form of uraninite within the Archaean Despair Granite on E52/2095. Drilling at the Kangaroo Ridge prospect intersected wide zones of uranium mineralization associated with biotite schists returning drill intersections such as :

• 35m @ 503ppm U3O8 from 125.1m, including 5m @ 1,069ppm U3O8 and

• 7.8m @ 588ppm U3O8 from 47.8m, including 1m @ 1,873ppm U3O8

The mineralized biotite schists are related to shear zones developed within the Archaean Despair Granite. Results from a previous detailed airborne radiometric survey and geological mapping indicates shear zones with a combined strike length in excess of 25 kilometres exist within the Company’s tenements and may be prospective for uranium mineralization.

At the Doris prospect, assaying of diamond drill core from DD10-01 has indicated that uranium mineralization is not restricted to shear zones but may also occur within the surrounding granite (Figure 3). Although the granite hosted uranium values in DD10-01 are not economic, they show a marked increase in grade compared to average uranium values obtained from surface outcrops.

During the quarter detailed sampling using a handheld spectrometer was undertaken of previously identified radioactive granite with surface values much greater than those from the Doris area. The most significant result was obtained from Anomaly 22 (Figure 4) where a 35m wide zone of weakly sheared granite assayed 182ppm eU3O8 . This zone represents an immediate drill target.

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A low level aerial radiometric survey completed at the end of September highlighted a conspicuous bullseye thorium anomaly in the south western corner of exploration licence E52/2478 (Figure 2). In addition, a broad thorium drainage anomaly running from south to north along the eastern side of E52/2478 has as its source a large, 800 metre diameter, prominent circular thorium anomaly in the northern part of E52/2095. This second anomaly is coincident with a number of small magnetic highs.

Ground examination and sampling of both anomalies was undertaken. Both thorium anomalies occur in soil covered areas which are topographically flat. The presence of anomalous thorium was confirmed but the source of the thorium anomalies was not identified. A drilling program is planned to test these anomalies at the earliest opportunity with the Company awaiting approval from the WA Department of Mines and Petroleum.

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Figure 2

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Figure 3

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Figure 4

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MT JAMES CREEK : Uranium project – WA (100% interest)

The Company has applied for two exploration licences in the Gascoyne region of Western Australia which are prospective for uranium mineralization. These two licences cover an area of 43sq km in the Morrissey Metamorphics and are located 300km east of Carnarvon, see Figure 5.

The area contains a number of historical uranium prospects which were investigated during the 1970’s. RC and diamond drilling recorded the presence of uraninite mineralization (eg. 455ppm U3O8 over 1.3m and 11m @ 137ppm U3O8 ) in a sequence of quartz-biotite-chlorite schists and coarse grained siliceous granites.

During the quarter, a site visit confirmed the presence of uranium mineralization associated with pegmatites and quartz-biotite-chlorite schist at a number of locations. A review of previous exploration data is being undertaken.

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Figure 5

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Further Information:

Adrian Jessup Russell Barnett Director Chairman Tel: (08) 9361 3100 Tel: (08) 9320 5138

eU and eU3O8 are values obtained using a calibrated Exploranium GR-135 spectrometer.

The information in this report that relates to Exploration Results has been compiled by Mr. David Ross B.Sc(Hons), M.Sc. who is an employee of Empire Resources Ltd. He is a member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. He has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. David Ross consents to the inclusion in the public release of the matters based on his information in the form and context in which it appears.