DEVEX RESOURCES LIMITED - Interim / Quarterly Report 2011

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27 April 2011

The Company Announcement Officer Australian Securities Exchange Ltd via electronic lodgement

Quarterly Report Quarter ended 31 March 2011

Highlights

PhosEnergy – Uranium Extraction Technology

Construction of Demonstration Plant nearing completion for the PhosEnergy Process for the extraction of uranium from phosphoric acid streams
Demonstration Plant planned to commence operations in the US in the third Quarter to test the efficacy of the process under industrial conditions
Plant will also provide cost and design data for construction of a full-scale commercial facility

Uranium Exploration

Intercepts including 23m @ 1,980ppm U3O8 received in final laboratory results for drilling at the Coopers Prospect, West Arnhem Joint Venture
Planning for 2011 exploration program nearing completion with field work to test extensions to the U40 and Coopers prospects to commence in early Q3 2011
Planning and clearances for drill programs on the Frome Basin and Lake Blanche Projects in South Australia well advanced
Vale elects to proceed to Phase 2 of the Headwaters Project in West Arnhem Land in the Northern Territory
Exploration Licences granted for the Marla and Oodnadatta Projects covering a total area of 13,963km[2]

Corporate

The Group’s cash balance at the end of the Quarter was $6.7 million ($1.1 million has been received and is held on account from Cameco as part of the earn-in expenditure on the PhosEnergy Process).

w w w . u e l . c o m . a u

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1. URANIUM EXTRACTION TECHNOLOGY

Through its USA-registered subsidiary Urtek LLC (“Urtek”), Uranium Equities is developing a new technology for the extraction of uranium from phosphoric acid streams produced in the production of phosphate-based fertilisers, “the PhosEnergy Process”.

Cameco Corporation is funding the ongoing development and commercialisation of the PhosEnergy Process through a staged investment of up to US$16.5 million. If Cameco earns its interest it has agreed to provide funding for a minimum of 50% of UEQ’s portion of capital expenditure, under terms to be agreed, for the construction of the first commercial plant, repayable out of earnings.

UEQ estimates the cash operating cost of uranium production employing the PhosEnergy Process to be US$20 to US$25 per pound of U3O8. This cost estimate is based on a 1 million tonne per annum P2O5 phosphate production facility operating in the USA and incorporates a significant contingency of 40%.

1.1. Activities – Technical and Business Development

Construction of a fully integrated and process controlled Demonstration Plant to test the efficacy of the PhosEnergy Process under industrial conditions was nearing completion at the end of the Quarter. The demonstration plant, which has been designed and constructed in Adelaide, is now being commissioned and is planned to be ready for transport to the USA by mid-May.

The demonstration is planned to operate at a site in the US commencing in the third Quarter of this year and will provide cost and design data to enable the construction of a full-scale commercial facility,

This first-class asset has been constructed to international standards and is able to be easily transported to, and integrated into, phosphate fertilizer facilities around the world. It encompasses all of the key aspects of the PhosEnergy process within two 40-foot shipping containers ( Figure 1 ).

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Figure 1 – PhosEnergy Process Demonstration Plant

Further enhancements to the PhosEnergy flowsheet are planned, examining the potential to extract and recover other by-product elements further improving the cost structure of the process within the next quarter.

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2. Uranium Exploration Activities

Uranium Equities has a focused exploration portfolio of eight key uranium projects in the Northern Territory, South Australia, Western Australia and Queensland. This portfolio includes Exploration Licences (and Applications) covering an area of over 24,000km[2] , representing a number of different uranium deposit styles and targets.

A key focus for the Company is the West Arnhem Joint Venture with Cameco Australia (UEQ 40%) and the 100%owned Nabarlek Mineral Lease, which represents a rare near-mine exploration opportunity surrounding the historic Nabarlek Uranium Deposit (24Mlbs @ 1.84% U3O8). The deposit lies within an extensive uranium mineral system which extends over more than 50km[2] within the Mineral Lease and the surrounding tenements.

2.1. West Arnhem Joint Venture – 40% UEQ: 60% Cameco Australia (Manager) (NT)

During 2010, the Joint Venture tested a number of target areas within the Company’s 477km[2] West Arnhem Joint Venture project area in the Northern Territory ( see Figure 2 ) including the U40 Prospect (see ASX Announcement of 16 December 2010) and the Coopers Prospect (See ASX Announcement of 24 September 2010)

During the Quarter, Cameco Australia advised that it had received independent laboratory assay results from the drilling program conducted at the Coopers Prospect, which is located 2.4km east of the Nabarlek Mine and 800m east-north-east of the N147 Prospect, close to the south-east corner of the Nabarlek Mineral Lease (UEQ 100%). RC drilling was targeting a uranium geochemical anomaly previously defined by aircore drilling.

Results include assays from RC drill-hole NAR7386, in which visible secondary uranium mineralisation was observed within dolerite lithologies. Strong hematite and chlorite alteration is associated with the mineralisation and also occurs in the underlying basement rocks providing a possible basement target beneath the dolerite sill.

Significant intercepts[(1)] using a 200ppm U3O8 cut-off grade include:

NAR7377 1m @ 1,110ppm U3O8 from 30m NAR7378 3m @ 396ppm U3O8 from 34m NAR7386 23m @ 1,980ppm U3O8 from 40m inc. 4m @ 3,830ppm U3O8 from 47m and 3m @ 3,066ppm U3O8 from 55m

Uranium Equities’ current interpretation of the geological setting in the vicinity of NAR7386 suggests that there is a possible faulted offset position for dolerite-hosted mineralisation to the west while the potential for basement hosted mineralisation remains open to the south-west.

The Joint Venture is finalising planning for the 2011 field season work program to test for extensions to the mineralisation at the U40 and Coopers Prospects with field work expected to commence in early Q3 2011.

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Figure 2 – Nabarlek Project

2.2. Nabarlek Mineral Lease (100% UEQ) (NT)

The 2010 geochemical drilling program has successfully defined a number of geochemically anomalous prospects under shallow Kombolgie Sandstone and alluvial cover within the Mineral Lease.

A major geological, geophysical, structural and alteration review is being finalised to identify vectors towards highgrade mineralisation to define targets for the proposed 2011 drill program. Planning for this year’s field season work program is continuing with the priority target areas being the Boomerang and Clapstick Prospects identified in 2010 ( Figure 2 ).

The 2011 exploration drilling program within the Nabarlek ML will target a Nabarlek-type deposit – a high grade deposit with a very high net value. The historic Nabarlek Mine produced 24Mlbs of U3O8 at an average grade of 1.84% from a mineralised zone approximately 200m long to a depth of 70m.

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2.3. Frome Basin (SA)

Uranium Equities has consolidated a large (2,397km[2] ) strategic ground position in one of Australia’s most prospective uranium provinces, South Australia’s Lake Frome district. The ground position comprises the West Lake Frome Joint Venture, a $5 million farm-in agreement with Cauldron Energy Limited (ASX: CXU), and three UEQ 100%-owned exploration licences (Figure 3).

A reconnaissance rotary-mud drilling program is currently being planned for the first year of exploration along the western margin of the Frome Embayment, with three traverses over the highest priority targets. Targeting is designed to test structural positions along the Wertaloona Fault, using the Four Mile/Pepegoona mineralisation style as the model.

Work proposals have been approved by government authorities and native title access agreements have been executed. Heritage surveys and drill operations are planned for Q2 2011.