EMU NL — Interim / Quarterly Report 2012

Apr 29, 2012

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QUARTERLY REPORT for the Quarter Ended 31 March 2012

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Emu Nickel NL ABN 50 127 291 927

ANCOA NL

ASX Code: EMU

Level 2 16 Ord Street West Perth, WA 6005

T +61 8 9226 4266 F +61 8 9485 2840 E info@emunickel.com.au

PO Box 1112 West Perth, WA 6872

During the quarter Emu Nickel shareholders voted in favour of resolutions to acquire all the issued capital of ANCOA NL, an unlisted public company holding exclusive rights to purchase a 100% interest in the Hillgrove antimony-gold mine in NSW. The Hillgrove mine is considered to be a quality asset with the prospect of transforming Emu from a nickel explorer to an antimony and gold producer within 18 months. The Hillgrove mine has the potential to become a high margin operation with scope to add significant value for Emu shareholders at a time of strong antimony and gold prices. The transaction is subject to Emu raising $60 million, for which a prospectus has been issued.

EMU LAKE (Emu earning 33.3%)

Issued Capital : Shares - Quoted: 59,828,940 fully paid shares

Options – Unquoted:

10,000,000 exercisable at $0.50 by 27.2.2013 1,830,000 exercisable at $0.27 by 22.12.2014 180,000 exercisable at $0.1961 by 21.12.2015

Cash: $3.86 million

Nickel specialists Newexco are currently reviewing the drilling and geophysical data on the 1,200m-long mineralised contact zones at Binti Gossan and Binti South where high grade nickel sulphide mineralisation has been identified. To date a total of 15 drill intersections in excess of 3% Ni, some with significant platinum and palladium credits, as shown in Figure 1 and Table 1.

The Newexco study is designed to identify locations for contact parallel drill holes which could be used for deep downhole EM surveys to test for massive nickel sulphides on these prospective contacts. This technique has proved successful in discovering significant nickel sulphide resources in Western Australia including Silver Swan (30km west of Emu Lake) and at Flying Fox near Forrestania.

Directors:

Peter Thomas Chairman George Sakalidis Managing Director Greg Steemson Executive Director

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Figure 1 Binti Gossan and Binti South Longitudinal Projection

Table 1 Binti Gossan and Binti South Drill Intersections >3% Ni

Hole No	From (m)	To (m)	Interval (m)	Ni %	Cu %	Pt ppb	Pd ppb	Pt+Pd g/t
ELD 5	256	258	0.30	7.55	0.35	1015	1726	2.74
	277	277	0.17	7.08	6.46	1092	2315	3.41
ELD 11	364	364	0.05	3.55	0.01	205	745	0.95
ELD 14	194	195	0.13	5.56	0.18	940	3230	4.17
ELD 15	336	338	2.00	6.2	1.78	749	1424	2.17
ELD 16	377	377	0.28	6.66	0.24	423	226	0.65
ELD 16	302	303	0.11	3.95	0.18	632	723	1.35
ELD 21	366	367	0.15	7.54	0.11	928	1310	2.24
ELD 23	293	293	0.28	5.35	0.4	na	na	na
ELD 25	347	347	0.10	10.9	0.07	na	na	4.17
ELD 29	551	552	0.50	3.76	0.23	na	na	na
ELD 36	320	322	1.58	3.7	1.33	na	na	na
ELD 36	477	477	0.17	3.84	0.91	31	3096	3.13
ELD 42A	282	282	0.21	6.32	0.39	na	na	na
ELD 47	447	448	0.25	5.68	0.67	na	na	na

na: assays not yet available

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WINDY KNOB (Emu 51%)

The Windy Knob joint venture tenements are situated 55km south of Meekatharra in the Murchison region of WA, adjacent to the Austin volcanogenic massive sulphide (VMS) discovery mode by the Silver Swan Group. During the quarter a scout aircore drilling programme was carried out over a 3km-long gold anomaly identified by soil sampling. The anomaly is interpreted to be associated with the Federal Bassett shear zone, a known goldbearing structural zone. This first pass drilling, situated in the northern part of the project area, comprised 40 aircore holes totalling 1,621m. The drilling intersected a sequence of weathered mafic volcanics, sediments and felsic rocks. Sample analysis is in progress.

The Austin VMS Cu-Zn-Ag-Au resource (1.48Mt @ 1.02% Cu, 1.39% Zn, 3.51g/t Ag and 0.24g/t Au) is close to a joint venture tenement boundary and appears to be plunging towards this boundary at depth. Emu is continuing to model available data with a view to deep drilling to test the plunge extension of this mineralisation within the joint venture tenements.

KAMBALDA WEST (Emu 30%)

Mincor Resources completed 23 RAB drill holes south of Nepean, following up a previous RAB drill intercept (NRB 042; 3m @ 2.34g/t Au from 57m). Assaying of samples is in progress. A flora survey was completed over the Woolgangie magnetic anomaly in preparation for RC drilling of this target, interpreted to be a banded iron formation or possibly a magnetite skarn.

MADOONIA DOWNS (Emu 100%)

Permitting is in hand for an RAB/aircore drilling programme to test an ultramafic sequence along strike from the Hootan and Talc Lake nickel sulphide occurrences.

SALMON GUMS (Emu 100%)

Soil sampling is in progress to define the extent of gold-in-soil anomalies identified in the Lake Pyramid area, on the interpreted southern extension of the Tropicana gold trend.

For more information on the company visit www.emunickel.com.au Please direct enquiries to:

George Sakalidis Managing Director Phone (08) 9226 4266 Mobile 0411 640 337 Email george@emunickel.com.au

The information in this report that relates to exploration results is based on information compiled or reviewed by George Sakalidis is a director of Emu Nickel NL. Mr Sakalidis 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 as defined in the 2004 edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Sakalidis consents to the inclusion of this information in the form and context in which it appears in this report.

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