ENERGY METALS LTD — Capital/Financing Update 2015

Oct 26, 2015

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ABN 63 111 306 533

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ASX ANNOUNCEMENT

27[th] October 2015

ASX Code - EME

For further information, contact:

Dr Weidong Xiang Energy Metals Limited

Telephone: 61 8 9322 6904 Facsimile: 61 8 9321 5240 Email:enquiry@energymetals.net Level 2, 8 Colin Street West Perth WA 6005

PO Box 1323 West Perth WA 6872

This report and further information are available on Energy Metals’ website at:

www.energymetals.net

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7,456 TONNES U3O8 MAIDEN JORC RESOURCE WALBIRI & SATELLITE DEPOSITS (NT)

HIGHLIGHTS

• Inferred resources of 7,037 tonnes eU3O8 at 641ppm (200ppm cut-off) obtained for the Walbiri uranium deposit confirming Walbiri as the third largest uranium deposit in Central Australia after Angela and Bigrlyi.

• Inferred resources of 260 tonnes eU3O8 at 259ppm and 159 tonnes eU3O8 at 321ppm for the Sundberg and Hill One deposits (200ppm cut-off).

• Uranium potential of the Ngalia Basin (NT) further demonstrated, supporting EME’s strategy of ongoing review of historical deposits in the region.

Significant drill hole intercepts include:

• 7.5m at 1,098ppm eU3O8 from 187.1m in WPH07

• 3.0m at 1,740ppm eU3O8 from 139.9m in NGDD18

• 6.8m at 646ppm eU3O8 from 139.5m in NGRH37A

• 1.0m at 5,340ppm eU3O8 from 171.7m in WPD15

Energy Metals Limited (ASX: EME) is pleased to advise that uranium resource estimates have been obtained for the historical Walbiri deposit and two satellite deposits, Sundberg and Hill One, located 75km by road from the Bigrlyi Deposit in the Ngalia Basin, Central Australia (Figure 1). The deposits lie on granted tenements EL24463, ELR45 and EL30145.

The Walbiri Range area was recognised as prospective for sandstone-hosted uranium following the discovery of outcropping carnotite mineralisation by Central Pacific Minerals (CPM) in late 1971. Subsequent exploration work, including the drilling of 57 exploration holes, was carried out by CPM in the period 1972 to 1976. EME acquired CPM’s interest in the project in 2005, including all the historical exploration records which are now held in EME’s archives.

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The Ngalia Basin, which is some 12,600 km[2] in size, is recognised as one of the Northern Territory’s significant and most prospective uranium provinces (JSU Ngalia Basin Uranium Mineral System Project, Northern Territory Geological Survey, Record 2012-003) . In 2014, EME began a program of systematic documentation and evaluation of historical uranium deposits and prospects located on its Ngalia Basin tenure. Because of the thoroughly and meticulously kept CPM exploration records for Walbiri and adjacent satellite deposits, it was recognised that these data would be of sufficient quality to proceed with JORC-compliant resource estimation provided geological criteria such as continuity of mineralisation and appropriate drill hole density could be demonstrated. A review by EME’s resource consultants CSA Global Ltd confirmed that appropriate criteria were met for Walbiri and its satellite deposits, and EME elected to proceed with the resource estimation.

The latest available historical resource estimate for the Walbiri deposit (non-JORC) was undertaken by the Australian Mineral Development Laboratories (AMDEL) in November 1976 using chemical assay data and employing geostatistical constraints. An estimate of 4,789 tonnes U3O8 was obtained for an average grade of 1,140 ppm U3O8 (cut-off grade not specified). An earlier, widely quoted historical “resource” for the Walbiri deposit of 690 tonnes U3O8 at a grade of 1,620 ppm was actually derived from a preliminary resource calculation for a single lens of mineralisation of 743m length and 113m width using a 1,000 ppm cut-off grade. Although this estimated tonnage is not indicative of the deposit as a whole, the estimate has been variously quoted as such over the intervening 40 years giving the impression that Walbiri was not a uranium deposit of significance.

Exploration Results

Walbiri and its satellite deposits are a tabular, sandstone-hosted, uranium-vanadium style of deposit similar to the nearby Bigrlyi deposit. Mineralisation is hosted in the Mt Eclipse sandstone which is comprised dominantly of arkose, sub-arkosic sandstone and shale deposited in an ancient fluvial channel and alluvial fan system. Mineralisation is stratiform in nature and occurs within a number of semi-continuous lenses confined by shale bands; the dominant lens occurs immediately above a shale marker band termed the ‘C-shale’. Mineralisation is hosted in reduced, grey-green coloured, pyrite-bearing rocks typically near the interface with oxidised mottled or red-coloured rock units. Uranium tends to be variably distributed along strike and at depth probably due to both primary depositional features, including the abundance of detrital clay clasts and channel morphology, and the effects of later uranium remobilisation.

The dimensions of the main Walbiri mineralised domain are approximately 3.6 km along strike with an average plan width of 300 m and maximum modelled plan width of 1,100 m. The total combined strike length of the Walbiri deposit and its two satellite deposits (Sundberg and Hill One) is 8.7 km. Stratigraphy and mineralisation dips between 10° and 18° to the SW and the width of the mineralised interval varies from 0.2m to 7.5m, averaging 1.3m thickness. Mineralisation extends from surface and plunges toward the SE with the deepest drill intercept being 230m below surface. Drill hole collar locations and other drilling details are provided in Annexure 1.

Uraninite and coffinite are the dominant uranium minerals in the sub-surface and they occur in close association with pyrite, ferroselite, and detrital-origin phyllosilicate minerals including biotite, clays and chromium-bearing chlorite. Walbiri and the satellite deposits are characterised by low levels of carbonate cement.

All CPM’s drill holes were logged open-hole, by independent geophysical contractors, using downhole gamma probe tools (for further details see the comments with regard to JORC reporting

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below). The downhole gamma probe was used as the primary analytical tool to measure eU3O8 grade. Drill core samples were assayed for uranium, however, these data are not considered to be sufficiently robust nor representative to be used in the resource estimation. Historically a number of samples were assayed to determine the extent of possible radiometric disequilibrium; although the data are somewhat variable it was concluded that significantly mineralised zones are most likely in equilibrium. This view is supported by a comparison of assay and gamma log U3O8 data, and therefore application of a disequilibrium correction is not considered to be warranted at this stage (i.e. radioactive equilibrium factor or REF has been assigned a value of 1).

Drill hole information and gamma log data for all drill holes, including associated metadata and probe calibration records, were compiled from EME’s archives. Historical gamma logs were archived as a compilation of analogue printouts on paper charts; these were scanned at high resolution, digitised and converted to counts per second (cps) data at 10cm intervals downhole. Using the calibration data and hole information the cps data were reprocessed to yield deconvolved eU3O8 values according to well established methods. Significant intercepts (minimum width 0.3m, maximum internal dilution 0.3m, cut-off grade 100ppm eU3O8, and grade x thickness value >100) are detailed in Annexure 2. All relevant drilling data, gamma logging data and geological data including lithological logs have been converted to digital format, verified and loaded into EME’s database (a summary of the information is provided in Table 1 below).

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Figure 1. Map showing the location of the Walbiri deposit and the Sundberg and Hill One satellite deposits in relation to the Ngalia Basin (in green), EME tenement boundaries and various deposits and prospects (significant deposits on EME tenure are identified).

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Table 1. Database Summary used in the Resource Estimation

Category	Total
Number of drill holes	66*
Total metres drilled	10,018.71
Number of downhole surveyrecords	66
Number ofgamma logged intervals(at 10 cm)	79,505
Number of mineralised intervals based on 10 cm gamma-logging	94
Number of assays	395
Number of assays used for REF estimatepurposes	58
Number of intervals with lithological data	4,573

*57 CPM drill holes and 9 Alcoa drill holes. The latter holes, drilled mainly to the west of Sundberg, do not have available gamma logs and were used to constrain lithological continuity and the extent of mineralisation only.

Land tenure

Just over one half of the Walbiri deposit and most of the Sundberg and Hill One satellite deposits are located within granted tenement EL24463, which is 100% EME owned. The remainder of the Walbiri deposit and a portion of the Hill One deposit are located on granted joint venture tenement ELR45, which is a joint venture between EME (41.9%) and Paladin Energy Ltd (PDN: 58.1%) with EME as the operator of the joint venture. About one third of the Sundberg deposit is located on granted tenement EL30145 which is a joint venture between EME (53.3%), Paladin Energy Ltd (PDN: 41.7%) and Southern Cross Exploration (SXX: 5%) with EME as the operator of the joint venture.

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Figure 2. Map showing the location of Walbiri, Sundberg and Hill One deposits in relation to tenement boundaries (green), outcropping sandstone (grey), surface mineralisation (red lines), bedding planes and syncline/anticline axes. Northern boundary of Ngalia Basin (dot-dash line) and drainages (blue) are shown.

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The deposits are all located on the Mt Doreen pastoral lease over which a Native Title claim was determined by consent in 2013. Currently, resource areas of the Walbiri, Sundberg and Hill One deposits are affected by Aboriginal heritage zones which restrict access and limit ground disturbing activities within the area.

Resource Estimation Procedure

Mineralised envelopes at a 100ppm eU3O8 cut-off grade were interpreted and wireframed (Figures 3 & 4). The wireframes were constrained by surface outcrops and constructed on the basis of a sectional interpretation in which the boundaries were extrapolated to half the nominal section spacing beyond the extents of current drilling. For profiles containing only one drill hole, an average bedding dip was assumed. Using the digital lithological logs, digital models were also generated for the three shale horizons (A, B & C-shales) which bound internal sandstone sub-units (Figure 3).

The downhole eU3O8 data were composited over mineralised intervals using the following parameters: minimum thickness 0.3m, 100ppm eU3O8 cut-off grade, 0.3m maximum width of internal waste, no external dilution, and minimum grade-thickness of 30 ppm · m. A REF value of 1 was applied (U3O8/eU3O8 = 1) and statistical and geostatistical analyses were then performed. The block model was created and filled following application of a coordinate transformation to provide a constant orientation of mineralisation for interpolation purposes. Because the distribution of uranium grades consists of several populations the Multiple Indicator Kriging (MIK) method was used for interpolation of grades in the block model. The dimensions of the parent blocks were set at 10х10х0.5 m with sub-celling applied at the boundaries of the model. An average bulk density of 2.56 t/m[3] , as measured from Walbiri core samples held in EME’s core facility, was used. The distribution of U3O8 grade x thickness values obtained is shown in Figure 5 and the resulting resource estimate, which is classified as inferred, is provided in Annexure 3 for various cut-off grades as well as splits for both deposit and joint venture interest.

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Figure 3. A SW-NE cross-section through the Walbiri Deposit showing wireframe models of lithological domains (brown: A-shale; blue: B-shale and green: C-shale) and mineralised bodies (red). Topographic surface and drill hole traces also shown.

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Figure 4. Wireframe models of the mineralised bodies. Outcropping mineralisation shown in red.

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Figure 5. Distribution of U3O8 grade x thickness (GT) for the Walbiri and satellite deposits.

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Summary

The Mineral Resources are summarised in Table 2 for a 200ppm U3O8 cut-off grade:

Table 2: Estimate of Mineral Resources for the Walbiri and Satellite Deposits (Ngalia Basin)

Category	Deposit	Volume '000 m3	Tonnes '000 t	Grade	Grade	Mineral Resources	Mineral Resources
				U3O8 ppm	U %	U3O8 Mlb	U3O8 tonnes
Inferred	Hill One	192	494	321	0.027	0.350	159
Inferred	Walbiri	4,274	10,983	641	0.054	15.514	7,037
Inferred	Sundberg	391	1,005	259	0.022	0.574	260
Inferred	Total	4,857	12,482	597	0.051	16.438	7,456

Notes:

1. The Mineral Resources are for a 100% interest in the associated joint ventures and not the Mineral Resources attributable to the individual joint venture partners.

2. Mineral Resources are based on 200 ppm cut-off grade per resource block.

3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

4. Mineral Resources are based on JORC-2012 definitions.

5. Mineral Resources are based on a bulk density of 2.56 t/m[3] .

6. Rows and columns may not add up exactly due to rounding.

The Mineral Resources have been classified and reported in accordance with JORC (2012) requirements. The resource classification is based on the assessed level of confidence in sample methods used, geological interpretation, drill spacing and geostatistical measures.

With the mineral resources defined here, the Walbiri deposit is confirmed as the third largest uranium deposit in the southern Northern Territory after Angela and Bigrlyi, and is the second largest deposit in the Ngalia Basin (Table 3). These results affirm the standing of the Ngalia Basin as one of Australia’s significant uranium provinces.

Table 3: Mineral Resources of the three largest uranium deposits in the Alice Springs region

Deposit	Basin	Energy Metals’ Interest (%)	No. Resource Drill Holes	Cut-Off U3O8 Grade (ppm)	Average U3O8 Grade (ppm)	U3O8 tonnes
Angela1	Amadeus	0	794	300	1,310	13,980
Bigrlyi	Ngalia	53.3	1,057	250	818	12,230
Walbiri	Ngalia	73.4	47	200	641	7,037

1 Paladin Energy Ltd (100%)

Because the resource is based on a relatively small number of drill holes compared with the other deposits, Energy Metals believes there is considerable scope for expansion of the resource by both in-fill and along strike extensional drilling. In particular, mineralisation is open to the SE and is likely

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to be repeated in folded strata of the Mt Eclipse syncline and anticline to the south of the current resource area. In fact, an Induced Polarisation geophysical survey completed in 2013 has delineated a chargeable unit (i.e. prospective reduced sandstone) in the predicted stratigraphic position for Walbiri mineralisation folded around the southern limb of the Mt Eclipse syncline some 2 km south of the resource area; this represents a prime target for future drill testing.

Due to the proximity of the Walbiri and Bigrlyi deposits (Figure 1), EME considers that a combined future mining development would have a positive impact on project economics through both shared capital costs and increased project mine life. Although mineralisation at Walbiri is known to have certain favourable metallurgical characteristics such as low carbonate content, little work has been done on Walbiri since 1976; modern investigations of deposit metallurgy, hydrology, rock properties and uranium series equilibrium, in addition to drill test work, will be required to advance the project in the medium term. Energy Metals remains committed to its strategy of data compilation, resource evaluation and drill testing of historical uranium deposits on its Ngalia Basin tenure.

For and on behalf of the Board.

Weidong Xiang Managing Director 27[th] October 2015

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Competent Persons Statement

The information in this report that relates to Mineral Resource estimation is based on information compiled by Mr Dmitry Pertel, Principal Consultant Geologist, CSA Global Ltd and Dr Maxim Seredkin, Principal Consultant Geologist, CSA Global Ltd. Information in this report relating to the interpretation and determination of gamma probe results is based on information compiled by Mr Evgeny Sirotenko, consultant geophysicist, under supervision of Dr Maxim Seredkin, Principal Consultant Geologist, CSA Global Ltd. Mr Pertel is a member of the Australian Institute of Geoscientists (MAIG) and is an employee of CSA Global. Dr Seredkin is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM), a member of the Australian Institute of Geoscientists (MAIG), and is an employee of CSA Global. Mr Pertel and Dr Seredkin have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined by the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves – The JORC Code (2012)”, and Mr Pertel and Dr Seredkin both consent to the inclusion in this report of the matters based on the information in the form and context in which it appears.

Information in this report relating to exploration results, data, cut-off grades and QAQC analysis is based on information compiled by Dr Wayne Taylor and Mr Lindsay Dudfield. Mr Dudfield is a member of the AusIMM and the AIG. Dr Taylor is a member of the AIG and is a full time employee of Energy Metals; Mr Dudfield is a consultant to Energy Metals. They both have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves – The JORC Code (2012)”. Dr Taylor and Mr Dudfield both consent to the inclusion of the information in the report in the form and context in which it appears.

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Annexure 1. Collar coordinates for historical drilling at the Walbiri deposit and satellite deposits, GDA94 datum, Zone 52.

HOLE NUMBER	DEPOSIT	EASTING (m)	NORTHING (m)	ELEV- ATION(m)	DRILL TYPE*	DIP (deg- rees)	TRUE AZI- MUTH (deg- rees)	TOTAL DEPTH (m)	Hole Completion Date
NGDD07	Walbiri	765595	7531202	718.2	DD	-90	5	53.63	20/09/1972
NGDD08	Walbiri	765659	7531123	705.8	DD	-90	5	64.64	29/09/1972
NGDD09	Walbiri	765501	7531296	731.2	DD	-90	5	55.8	1/10/1972
NGDD10	Walbiri	765031	7531324	725.4	DD	-90	5	91.44	5/10/1972
NGDD11	Walbiri	765483	7531140	738.7	DD	-90	5	104.24	10/10/1972
NGDD12	Walbiri	765173	7530807	671.5	DD	-90	5	216.4	24/10/1972
NGDD13	Walbiri	765678	7530779	669.5	DD	-90	5	100.89	11/11/1972
NGDD14	Walbiri	766184	7530745	729.9	DD	-90	5	100.58	17/11/1972
NGDD15	Walbiri	764900	7531580	772.1	DD	-90	5	102.7	27/11/1972
NGDD17	Walbiri	765439	7530624	666.2	DD	-90	5	165.2	1/12/1972
NGDD18	Walbiri	765926	7530411	678.7	DD	-90	5	165.2	10/12/1972
NGDD19	Walbiri	764699	7531199	707.9	DD	-90	5	170.7	20/12/1972
NGRH01	Walbiri	764476	7531588	698.7	PH	-90	5	82.6	19/08/1973
NGRH02	Walbiri	764290	7531371	687.6	PH	-90	5	109	27/09/1973
NGRH03	Walbiri	766475	7530368	670.9	PH	-90	5	26	11/08/1973
NGRH03A	Walbiri	766472	7530367	670.8	PH	-90	5	97.25	17/08/1973
NGRH04	Walbiri	766287	7530113	663.1	PH	-90	5	169	26/08/1973
NGRH05	Walbiri	766975	7530284	710.9	PH	-90	5	106	21/09/1973
NGRH11	Walbiri	764189	7531989	776.1	PH	-90	5	85	14/10/1973
NGRH12	Walbiri	763713	7532197	757.9	PH	-90	5	92	17/10/1973
NGRH36	Walbiri	765793	7530472	673.8	PH	-90	5	161	18/11/1973
NGRH37A	Walbiri	766139	7530288	676.4	PH	-90	5	166	15/11/1973
NGRH38	Walbiri	765214	7531179	697.9	PH	-90	5	29	not specified
NGRH50	Walbiri	765457	7530839	681.5	PH	-90	5	128	5/11/1973
WPH01	Walbiri	765690	7530220	662.1	PH	-90	5	218.5	2/02/1975
WPH02	Walbiri	765865	7530129	660.1	PH	-90	5	208.04	13/02/1975
WPH03	Walbiri	765459	7530335	666.5	PH	-90	5	216.08	15/03/1975
WPH04	Walbiri	766146	7529989	660.8	PH	-90	5	191.83	24/03/1975
WPH05	Walbiri	766196	7529919	662.1	PH	-90	5	94	13/03/1975
WPH06	Walbiri	764951	7530395	679.3	PH	-90	5	113.04	21/03/1975
WPH07	Walbiri	766359	7529878	664.9	PH	-90	5	207.84	26/04/1975
WPH08	Walbiri	766541	7529754	666.5	PH	-90	5	212.55	17/09/1975
WPH09	Walbiri	766752	7529606	668.6	PH	-90	5	220.7	14/10/1975
WPH10	Walbiri	766218	7529711	663.1	PH	-90	5	253	27/10/1975
WPD11	Walbiri	766389	7529664	664.5	PD	-90	5	247.42	21/04/1976
WPD12	Walbiri	766507	7529526	663.8	PD	-90	5	256.25	29/04/1976
WPD13	Walbiri	766028	7529854	660.4	PD	-90	5	259.44	5/05/1976

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WPD14	Walbiri	766103	7530016	660.9	PD	-90	5	187.3	11/05/1976
WPD15	Walbiri	766195	7530055	661.7	PD	-90	5	187.12	15/05/1976
WPD16	Walbiri	766219	7530382	672.5	PD	-90	5	125.75	29/05/1976
WPD17	Walbiri	765833	7530611	684.6	PD	-90	5	133.47	1/06/1976
WPD18	Walbiri	766392	7529963	669.5	PD	-90	5	189.34	5/06/1976
WPD19	Walbiri	766307	7529798	663.7	PD	-90	5	226.92	12/06/1976
WPD20	Walbiri	766279	7529933	663.8	PD	-90	5	205.62	18/06/1976
WPD21	Walbiri	766441	7529810	665.1	PD	-90	5	208.69	23/06/1976
WPD22	Walbiri	766014	7530157	666.2	PD	-90	5	187.57	27/06/1976
WPD23	Walbiri	766694	7530109	674.8	PD	-90	5	181.67	2/07/1976
NGRH06	Hill One	767530	7530183	752.6	PH	-90	5	144.6	10/11/1973
NGRH07	Hill One	767773	7529851	720.0	PH	-90	5	123	9/11/1973
NGRH08	Hill One	768214	7529497	687.5	PH	-90	5	151	7/11/1973
NGRH09	Hill One	768545	7529199	662.8	PH	-90	5	112	8/11/1973
NGRH10	Hill One	768880	7528801	659.1	PH	-90	5	100	11/11/1973
NGRH13	Sundberg	763327	7532516	780.3	PH	-90	5	94	21/10/1973
NGRH14	Sundberg	762911	7532637	745.8	PH	-90	5	92	23/10/1973
NGRH15	Sundberg	761997	7533148	738.7	PH	-90	5	99	25/10/1973
NGRH45	Sundberg	762483	7532891	726.1	PH	-90	5	97.5	27/10/1973
NGRH46	Sundberg	761493	7533314	672.2	PH	-90	5	105	3/11/1973
MD007	Sundberg	761456	7534413	673.0	PH	-60	25	100	4/07/1978
MD008	Sundberg	762153	7534207	679.0	PH	-60	205	152	15/07/1978
MD013	Sundberg	760108	7532421	654.1	PH	-60	27	200	19/08/1978
MD014	Sundberg	760492	7532535	659.9	PH	-60	27	149	21/08/1978
MD015	Sundberg	760951	7533431	671.1	PH	-60	40	200	23/08/1978
MD016	Sundberg	761192	7534039	673.0	PH	-60	35	200	25/08/1978
MD025	Sundberg	760829	7533106	659.7	PD	-60	140	325.2	26/03/1980
MD019	Other	761260	7529206	637.2	PH	-90	5	200	2/08/1979
MD020	Other	760035	7529280	636.1	PH	-90	5	200	3/08/1979

*PH = Percussion Hole; DD = Diamond Drill Core; PD = Diamond Tail

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Annexure 2. Significant eU3O8 (Deconvolved Gamma Log) intercepts from the Walbiri and satellite deposits based on the criteria: Minimum width 0.3m, maximum internal dilution 0.3m, 100ppm eU3O8 cut-off grade; Grade x Thickness >100. Grade x Thickness (GxT) values >1000 are highlighted in bold italics.

Hole Number	From (m)	To (m)	Width (m)	eU3O8 (ppm)	G×T (ppm·m)
NGDD10	45.2	45.8	0.6	324	194
NGDD11	67.6	68.5	0.9	2210	1989
	72.0	73.3	1.3	1269	1650
	73.9	75.4	1.5	1181	1772
NGDD12	144.1	144.9	0.8	192	154
NGDD13	76.8	77.3	0.5	369	185
NGDD14	82.2	84.1	1.9	150	285
	87.0	89.1	2.1	603	1266
	89.5	91.0	1.5	372	558
NGDD15	39.3	41.8	2.5	820	2050
	82.7	85.3	2.6	644	1674
NGDD18	139.9	142.9	3.0	1740	5220
NGDD07	10.0	16.1	6.1	433	2641
	16.9	21.1	4.2	583	2449
	22.1	25.1	3.0	198	594
NGRH15	63.5	64.1	0.6	305	183
	96.3	96.8	0.5	207	104
	68.0	68.6	0.6	201	121
NGRH37A	138.6	139.1	0.5	406	203
	139.5	146.3	6.8	646	4393
	88.1	88.7	0.6	511	307
NGRH03A	90.0	91.6	1.6	455	728
	93.0	95.1	2.1	265	557
NGRH46	48.3	50.8	2.5	202	505
NGRH09	43.7	44.1	0.4	395	158
	46.2	46.8	0.6	273	164
WPD11	162.6	163.0	0.4	718	287
	200.8	201.3	0.5	339	170
	211.2	212.6	1.4	416	582
WPD12	169.1	171.1	2.0	244	488
	175.0	175.6	0.6	214	128
	225.9	227.5	1.6	678	1085
WPD14	98.8	99.4	0.6	213	128
	166.8	170.6	3.8	484	1839
WPD15	144.6	145.1	0.5	296	148
	169.0	170.7	1.7	365	621
	171.7	172.7	1.0	5340	5340
WPD16	106.8	109.4	2.6	513	1334
WPD18	172.3	174.6	2.3	393	904

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WPD19	199.6	204.0	4.4	523	2301
	204.5	204.9	0.4	2554	1022
WPD20	179.8	181.4	1.6	586	938
WPD21	190.3	193.4	3.1	555	1721
WPD22	170.7	171.4	0.7	159	111
	172.3	174.0	1.7	904	1537
WPH01	194.2	194.9	0.7	234	164
	195.4	200.5	5.1	372	1897
WPH10	215.3	216.3	1.0	485	485
	218.1	219.4	1.3	364	473
	220.5	221.1	0.6	1825	1095
WPH02	186.5	188.0	1.5	276	414
	189.6	192.1	2.5	348	870
	193.4	195.9	2.5	835	2088
WPH04	177.0	181.6	4.6	993	4568
	182.1	183.1	1.0	353	353
WPH07	187.1	194.6	7.5	1098	8235
WPH08	187.7	190.1	2.4	916	2198
WPH09	124.6	125.7	1.1	251	276
NGDD08	29.6	30.5	0.9	250	225

13

Annexure 3. Walbiri deposit and Satellite deposits Resource Report.

Cut-off U3O8ppm	Volume ‘000 m3	‘000 tonnes	Average Grade U3O8 ppm	U3O8 Mlb	U3O8 tonnes
Hill One Deposit
100% EnergyMetals
1,000	0	0	-	0.000	0
750	0	0	-	0.000	0
500	2	6	550	0.007	4
400	8	19	452	0.019	8
300	81	208	362	0.166	75
200	189	486	323	0.346	157
100	487	1,252	201	0.555	252
0	487	1,252	201	0.555	252
JV Paladin and EnergyMetals(ELR45)
1,000	0	0	-	0.000	0
750	0	0	-	0.000	0
500	0	0	-	0.000	0
400	0	0	-	0.000	0
300	0	0	-	0.000	0
200	3	8	208	0.004	2
100	295	759	122	0.205	93
0	295	759	122	0.205	93
Total,Hill One Deposit
1,000	0	0	-	0.000	0
750	0	0	-	0.000	0
500	2	6	550	0.007	3
400	8	19	452	0.019	9
300	81	208	362	0.166	75
200	192	494	321	0.350	159
100	782	2,011	171	0.759	344
0	782	2,011	171	0.759	344
Walbiri Deposit
100% EnergyMetals
1,000	341	877	1,598	3.090	1402
750	744	1,911	1,167	4.915	2229
500	1,063	2,732	998	6.011	2727
400	1,367	3,512	876	6.786	3078
300	1,886	4,847	730	7.798	3537
200	2,301	5,913	644	8.402	3811
100	3,119	8,015	516	9.119	4136
0	3,330	8,559	486	9.178	4163
JV Paladin and EnergyMetals(ELR45)

14

1,000	284	730	1,920	3.090	1402
750	429	1,102	1,554	3.775	1712
500	750	1,927	1,147	4.872	2210
400	1,014	2,607	965	5.545	2515
300	1,441	3,703	781	6.374	2891
200	1,973	5,070	636	7.112	3226
100	2,310	5,936	565	7.394	3354
0	2,325	5,975	562	7.400	3357
Total,Walbiri Deposit
1,000	625	1,607	1,744	6.180	2803
750	1,172	3,013	1,308	8.691	3942
500	1,813	4,659	1,059	10.883	4936
400	2,381	6,119	914	12.331	5593
300	3,327	8,551	752	14.172	6428
200	4,274	10,983	641	15.514	7037
100	5,428	13,951	537	16.513	7490
0	5,655	14,534	517	16.578	7520
SundbergDeposit
100% EnergyMetals
1,000	0	0	-	0.000	0
750	0	0	-	0.000	0
500	0	0	-	0.000	0
400	3	7	410	0.006	3
300	52	133	322	0.095	43
200	292	750	252	0.416	189
100	550	1,413	203	0.633	287
0	550	1,413	203	0.633	287
JV Paladin,EnergyMetals & Southern Cross(EL30145)
1,000	0	0	-	0.000	0
750	0	0	-	0.000	0
500	0	0	-	0.000	0
400	2	5	410	0.004	2
300	54	139	325	0.100	45
200	99	255	281	0.158	72
100	161	414	246	0.224	102
0	161	414	246	0.224	102
Total,SundbergDeposit
1,000	0	0	-	0.000	0
750	0	0	-	0.000	0
500	0	0	-	0.000	0
400	5	12	410	0.010	5
300	106	273	323	0.194	88
200	391	1,005	259	0.574	260
100	711	1,827	213	0.857	389
0	711	1,827	213	0.857	389

15

Combined Deposits	Combined Deposits	Combined Deposits	Combined Deposits	Combined Deposits	Combined Deposits
1,000	625	1,607	1,744	6.180	2803
750	1,172	3,013	1,308	8.691	3942
500	1,815	4,665	1,059	10.890	4940
400	2,393	6,150	912	12.361	5607
300	3,514	9,031	730	14.532	6592
200	4,857	12,482	597	16.438	7456
100	6,922	17,789	462	18.130	8224
0	7,149	18,372	449	18.195	8253

Note: All figures in the tables are rounded, and therefore the total sums might not be the direct sum of the input figures

16

The following commentary is provided to ensure compliance with the JORC (2012) requirements for the reporting of Mineral Resource Estimates as discussed above for the Walbiri, Sundberg and Hill One Deposits located on tenements EL24463, ELR45 and EL30145.

Section 1: Sampling Techniques and Data

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling		Nature and quality of sampling (eg cut channels,		The primary sampling instrument at the Walbiri and satellite deposits was the
techniques		random chips, or specific specialised industry standard		downhole gamma tool (or ‘probe’) which was used to obtain a total gamma count
		measurement tools appropriate to the minerals under		reading down each drill hole. Drilling was by rotary percussion (PH) and diamond
		investigation, such as down hole gamma sondes, or		core drilling (DD) methods with NE-SW oriented drill lines on 100 - 150 m spacing
		handheld XRF instruments, etc). These examples		and closer 50 m spacing within the primary mineralised zones. Away from the
		should not be taken as limiting the broad meaning of		primary zones the spacing varied from 250 m to 500 m. Drill holes were mostly
		sampling.		vertical to optimally intersect shallow-dipping mineralisation. Original analogue
		Include reference to measures taken to ensure sample		gamma log data was digitised at 10 cm intervals downhole and converted to
		representivity and the appropriate calibration of any		standard format LAS files followed by calculation of equivalent U3O8(eU3O8)
		measurement tools or systems used.		grades (see below for further information on gamma log processing procedures).
		Aspects of the determination of mineralisation that are		The total count gamma logging method used here is a common method used to
		Material to the Public Report.		estimate uranium grade where the radiation contribution from thorium and
		In cases where ‘industry standard’ work has been done		potassium is small (as is the case for sandstone-hosted deposits of the Bigrlyi-
		this would be relatively simple (eg ‘reverse circulation		type considered here). Gamma radiation is measured from a volume surrounding
		drilling was used to obtain 1 m samples from which 3		the drill hole that has a radius of approximately 35 cm. Therefore the gamma
		kg was pulverised to produce a 30 g charge for fire		probe samples a much larger volume than drill spoil or drill core samples
		assay’). In other cases more explanation may be		recovered from a drill hole of normal diameter; gamma logging is considered to
		required, such as where there is coarse gold that has		provide a more representative sample of the mineralised body and is preferred
		inherent sampling problems. Unusual commodities or		over geochemical assay of drill samples for resource estimation purposes.
		mineralisation types (eg submarine nodules) may		Estimates of uranium concentration determined from gamma ray measurements
		warrant disclosure of detailed information.		are based on the commonly accepted initial assumption that the uranium is in
				secular equilibrium with its daughter products (radionuclides), which are the
				principal gamma ray emitters along the U-series decay chain. If uranium is in
				disequilibrium as a result of the redistribution (depletion or enhancement) of
				uranium relative to its daughter radionuclides, then the true uranium concentration
				in the holes logged using the gamma probe will be higher or lower than those
				reported. For the present resource estimation at Walbiri no disequilibrium
				correction has been applied, i.e. the Radioactive Equilibrium Factor (REF) =
				U3O8/eU3O8has been set to 1 (see below for further explanation). This is consistent
				with current knowledge of other Ngalia Basin uranium deposits such as Bigrlyi.
Drilling		Drill type (eg core, reverse circulation, open-hole		Rotary percussion and diamond drilling methods were used by Central Pacific
		hammer, rotary air blast, auger, Bangka, sonic, etc)		Minerals(CPM)between theyears 1972 – 1976 and byAlcoa in theperiod 1978 -

17

techniques		and details (eg core diameter, triple or standard tube,		1980. The 1972 program primarily consisted of NQ diamond drilling from surface
		depth of diamond tails, face-sampling bit or other type,		with a reduction in diameter to BQ at depth. The later programs included rotary
		whether core is oriented and if so, by what method,		percussion pre-collars between 50 - 100m depth with NQ diamond tails and also
		etc).		pure rotary percussion from surface to target depth. Rotary percussion drilling
				used 6 - 6 1/8” tri-cone roller bits and 11 – 12 cm diameter air-hammer. Hole sizes
				ranged from 7.6 to 16.5 cm and were primarily cased with NQ and NW casing to
				the pre-collar depths.
Drill sample		Method of recording and assessing core and chip		Drill spoil recovery is not relevant to the sampling method used (i.e. downhole
recovery		sample recoveries and results assessed.		gamma logging).
		Measures taken to maximise sample recovery and		Drill core from CPM exploration programs in the period 1972-1976 is archived in
		ensure representative nature of the samples.		Energy Metals core storage facility and at the NTGS Alice Springs core library.
		Whether a relationship exists between sample recovery		Core recoveries at the time of drilling were noted by CPM to be better than 94%.
		and grade and whether sample bias may have
		occurred due to preferential loss/gain of fine/coarse
		material.
Logging		Whether core and chip samples have been geologically		Twenty-two historical diamond core holes were re-logged by EME geologists for
		and geotechnically logged to a level of detail to support		lithology, colour, grain-size, stratigraphic unit, oxidation state, alteration,
		appropriate Mineral Resource estimation, mining		cementation, weathering and other features; data was recorded digitally and core
		studies and metallurgical studies.		was photographed. Scintillometer and Niton portable XRF measurements were
		Whether logging is qualitative or quantitative in nature.		undertaken at 20 cm intervals through mineralised zones to confirm the width of
		Core (or costean, channel, etc) photography.		mineralisation. The coded data was verified according to EME’s standard logging
		The total length and percentage of the relevant		look-up tables. The re-logs were found to be in good agreement with previous
		intersections logged.		logging records, which provided confidence in the quality of original CPM logging,
				and permitted EME to proceed with digitisation of the remaining CPM historical
				drill core logs.
				Rotary percussion drill chip samples were logged at the time of drilling by CPM
				geologists and the hard copy lithological logs were converted to digital format by
				EME geologists using EME’s standard codes.

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Sub-		If core, whether cut or sawn and whether quarter, half		Core was originally split into samples of half core for assay work. Half core was
sampling		or all core taken.		quartered for duplicate checks. Historically, CPM assayed for uranium and
techniques		If non-core, whether riffled, tube sampled, rotary split,		vanadium. The assay data were not used for the resource estimation work as they
and sample		etc and whether sampled wet or dry.		are not considered sufficiently robust nor representative in comparison with the
preparation		For all sample types, the nature, quality and		gamma logging measurements. However, assay data has been used to evaluate
		appropriateness of the sample preparation technique.		the Radioactive Equilibrium Factor.
		Quality control procedures adopted for all sub-sampling
		stages to maximise representivity of samples.
		Measures taken to ensure that the sampling is
		representative of the in situ material collected, including
		for instance results for field duplicate/second-half
		sampling.
		Whether sample sizes are appropriate to the grain size
		of the material being sampled.
Quality of		The nature, quality and appropriateness of the		The gamma tools used for downhole gamma ray measurements were calibrated
assay data		assaying and laboratory procedures used and whether		and operated by geophysical contractors Austral United Geophysical (AUG)
and		the technique is considered partial or total.		during the period 1972 – 1973 then McPhar Geophysics Pty Ltd until 1975 and
laboratory		For geophysical tools, spectrometers, handheld XRF		after this time by Geoex Pty Ltd of South Australia who acquired the assets of
tests		instruments, etc, the parameters used in determining		McPhar. Calibration information including k-factors and deadtime corrections and
		the analysis including instrument make and model,		hole information including hole diameter, casing depths/type and fluid levels/type
		reading times, calibrations factors applied and their		were recorded for each hole. The accuracy and reproducibility of the probe data
		derivation, etc.		were monitored using two on-site standard radioactive sources (a low-level and a
		Nature of quality control procedures adopted (eg		high-level source) and the monitoring data was included on each paper log and
		standards, blanks, duplicates, external laboratory		deemed satisfactory.
		checks) and whether acceptable levels of accuracy (ie		In 1972 holes were probed by AUG using a combination tool #326E (S.P.,
		lack of bias) and precision have been established.		resistivity and gamma); which included a Sodium Iodide (NaI) 1 x ¾ inch detector
				crystal. In 1973 AUG switched to a different NaI probe of the same make and size
				detector (#223). A primary run was undertaken for each hole and if warranted a
				separate run over mineralised intervals was completed. Post-1975, drill holes
				were probed with the L1 or lithology gamma probe which employed a sensitive 4 x
				1 inch NaI detector crystal. Intervals of significant mineralisation (off-scale on the
				L1 probe) were re-probed with the O1 or ‘ore’ gamma probe which employed the
				less sensitive 1 x ¾ inch NaI detector crystal. No gamma log data was available
				for holes drilled by Alcoa (western margin of the Sundberg prospect).
				Approximately 75% of the drill holes (those with a standing water level) were
				logged electrically to provide downhole electric potential and resistivity data. This
				data has not been digitised or used for resource estimation purposes.
				The counts per second (cps) downhole gamma data were recorded on paper
				charts with an analogue pen recorder; for some 1975 - 1976 holes (WPH) the cps
				data was also recorded in digital printout form for the O1 probe.
				Logging parameters includingthe time constant,loggingspeed and chart scale

19

				were recorded. Both L1 and O1 paper logs were digitised by EME’s geophysical
				contractor and converted into digital standard- format LAS files.
				LAS file data were converted to equivalent U3O8values (eU3O8in ppm) using the
				specified probe calibration factors and taking into account drill hole size, fluid
				levels and other parameters. The eU3O8data was filtered (deconvolved) to correct
				for smearing of the gamma signal at mineralised interfaces so that true grades
				and thicknesses more closely reproduce actual grade. The eU3O8grades were
				calculated by consultant geophysicist Mr Evgeny Sirotenko under the supervision
				of Dr Maxim Seredkin using the well-established methodology of Khaikovich and
				Shashkin, widely tested and upheld in the evaluation of uranium deposits in
				Kazakhstan and the former USSR.
Verification		The verification of significant intersections by either		LAS files from four holes with significant uranium intersections were independently
of sampling		independent or alternative company personnel.		reprocessed and deconvolved by consultant geophysicist Mr David Wilson of 3D
and		The use of twinned holes.		Exploration Pty Ltd. Comparison of eU3O8grade composites between the Wilson
assaying		Documentation of primary data, data entry procedures,		and Sirotenko datasets indicates that agreement is within 4% which is deemed
		data verification, data storage (physical and electronic)		satisfactory.
		protocols.		No twinned holes are available from the historical dataset.
		Discuss any adjustment to assay data.		Historical data including paper gamma logs, assay certificates and lithological logs
				were stored in archive boxes in EME’s library. The data is a complete record of
				CPM’s exploration works conducted from 1972 through 1976.
				Historically, CPM undertook ‘closed can’ eU3O8and uranium assay measurements
				at The Australian Mineral Development Laboratories (AMDEL), Adelaide, on 103 core
				samples in order to evaluate possible uranium series disequilibrium and determine a
				REF value applicable to the deposit. A scattered distribution with an average
				U3O8/eU3O8value of 1.12 +/- 0.36 (1) was obtained, however, AMDEL commented
				that “primary ore grade mineralisation was in equilibrium”. As an additional check, a
				comparison was made between available chemical assay and gamma log eU3O8data
				from 58 separate intervals (this report). Excluding outliers a U3O8/eU3O8value of 0.98
				was obtained and with outliers a value of 0.89 was obtained. Because these various
				measurements provide no corroborating evidence for a systematic deviation from 1
				within statistical error, the REF for resource estimation purposes at Walbiri at this
				stage is best assigned a value of 1. This is consistent with the REF used for the
				nearby Bigrlyi deposit. However, further detailed investigations and verification of
				historical data may in the future lead to refinement of the REF applied at Walbiri.
				No adjustments were made to eU3O8assay data other than the standard
				reprocessing (deconvolution) discussed above.
Location of		Accuracy and quality of surveys used to locate drill		Hole collar locations were determined using three independent datasets. The
data points		holes (collar and down-hole surveys), trenches, mine		primary dataset comprised CPM’s original exploration drill hole plans, which were
		workings and other locations used in Mineral Resource		scanned at high resolution and carefully georeferenced to allow extraction of hole
		estimation.		coordinates. The drill collars locations were compared with drill sites identifiable

20

		Specification of the grid system used.		from high resolution digital aerial photographic images and with the same drill
		Quality and adequacy of topographic control.		sites converted from CPM’s original local coordinate grid. Agreement between the
				three data-sets was found to be excellent and the accuracy of the collar
				coordinates is judged to be better than +/-10 m in the horizontal plane.
				The coordinates are located on the MGA94 grid, Zone 52 using the GDA94 datum
				(refer Annexure 2).
				In the vertical plane topographic control was provided by a Digital Elevation Model
				(DEM) generated from a high resolution aerial photographic survey flown in 2011.
				Accuracy is judged to be at least +/- 0.5 m in the vertical plane.
				All CPM holes were drilled vertically and as no surveys were undertaken, were
				assumed to have remained vertical to the end of hole. A number of Alcoa drill
				holes were angle holes; as no downhole surveys were undertaken the starting dip
				and azimuth were assumed until end of hole.
Data		Data spacing for reporting of Exploration Results.		The Walbiri deposit was drilled on NE-SW panels spaced at 100 - 150 m. Within
spacing and		Whether the data spacing and distribution is sufficient		strongly mineralised zones infill drilling was conducted on 50 m spaced panels
distribution		to establish the degree of geological and grade		with 100 – 200 m step-outs (depending on topography and access) to test down
		continuity appropriate for the Mineral Resource and		dip continuity. Away from the main zone limited down-dip drilling has been
		Ore Reserve estimation procedure(s) and		completed and the spacing between holes is 450 - 500 m.
		classifications applied.		EME and CSA Global consider the spacing sufficient to establish continuity of
		Whether sample compositing has been applied.		geology and grade for the purposes of estimation of an inferred mineral resource.
				Downhole gamma logs were digitised at 10 cm intervals and were composited
				(refer EME database) for resource reporting purposes.
Orientation		Whether the orientation of sampling achieves unbiased		Several investigations have shown that Bigrlyi-style (tabular stratiform sandstone-
of data in		sampling of possible structures and the extent to which		hosted) uranium mineralisation as found at Walbiri exhibit no significant structural
relation to		this is known, considering the deposit type.		control. Mineralisation is controlled by physical and chemical characteristics of the
geological		If the relationship between the drilling orientation and		host rock such as permeability and redox state and is influenced by primary
structure		the orientation of key mineralised structures is		depositional and sedimentological features.
		considered to have introduced a sampling bias, this		The deposit occurs in shallowly dipping beds and was sampled by vertical drill
		should be assessed and reported if material.		holes. The downhole gamma probe data was subsequently corrected for
				mineralised zone boundary effects by deconvolution. There is therefore no bias of
				sampling related to orientation of the mineralised zones.
Sample		The measures taken to ensure sample security.		Not applicable.
security
Audits or		The results of any audits or reviews of sampling		No audits or reviews of sampling techniques were undertaken.
reviews		techniques and data.

21

Section 2: Reporting of Exploration Results

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral		Type, reference name/number, location and ownership		Approx. 54% of the Walbiri deposit and most of the Sundberg and Hill One
tenement and		including agreements or material issues with third		satellite deposits are located within granted tenement EL24463, which is 100%
land tenure		parties such as joint ventures, partnerships, overriding		EME owned.
status		royalties, native title interests, historical sites,		Granted joint venture tenement ELR45 covers 46% of the Walbiri resource which
		wilderness or national park and environmental settings.		is a joint venture between EME (41.9%) and Paladin Energy Ltd (PDN: 58.1%).
		The security of the tenure held at the time of reporting		EME is the operator of the joint venture.
		along with any known impediments to obtaining a		Granted joint venture tenement EL30145 covers 28% of the Sundberg resource
		licence to operate in the area.		which is a joint venture between EME (53.3%), Paladin Energy Ltd (PDN: 41.7%)
				and Southern Cross Exploration (SXX: 5%). EME is the operator of the joint
				venture.
				A Native Title Claim covering the Mt Doreen pastoral lease on which the Walbiri
				and satellite deposits are located, was granted by consent on 2-July-2013. The
				Ngalyia Aboriginal Corporation is the relevant Registered Native Title Body
				Corporate and holds the native title interests of the traditional owners.
				Currently, resource areas of the Walbiri, Sundberg and Hill One deposits are
				affected by Aboriginal heritage zones which restrict access and limit ground
				disturbing activities within the area.
Exploration		Acknowledgment and appraisal of exploration by other		All the exploration data reported here is the result of drilling programs undertaken
done by other		parties.		by CPM over the period 1972 to 1976 and Alcoa over the period 1978 to 1980.
parties				EME acquired CPM’s interest in the project in 2005 including all historical data
				and archived drill core.
Geology		Deposit type, geological setting and style of		Walbiri and its satellite deposits are Bigrlyi–style, tabular, stratiform, sandstone-
		mineralisation.		hosted uranium deposits of Carboniferous age located on the northern margin of
				the Ngalia Basin in the Northern Territory.
Drill hole		A summary of all information material to the		Refer to Annexure 1.
Information		understanding of the exploration results including a
		tabulation of the following information for all Material
		drill holes:
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level – elevation above
		sea level in metres) of the drill hole collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		o hole length.
		If the exclusion of this information isjustified on the

22

		basis that the information is not Material and this
		exclusion does not detract from the understanding of
		the report, the Competent Person should clearly
		explain why this is the case.
Data		In reporting Exploration Results, weighting averaging		Exploration results, i.e. mineralised intercepts, are reported as equivalent U3O8
aggregation		techniques, maximum and/or minimum grade		values (eU3O8) from processed gamma logs. For reporting purposes (see
methods		truncations (eg cutting of high grades) and cut-off		Annexure 2) significant gamma log intersections have been composited from
		grades are usually Material and should be stated.		10 cm deconvolved eU3O8values using the following criteria: a cut-off grade of
		Where aggregate intercepts incorporate short lengths		100 ppm U3O8, a minimum thickness of 0.3 m, a maximum internal dilution of
		of high grade results and longer lengths of low grade		0.3 m, no external dilution and a grade x thickness value of >100. A Radioactive
		results, the procedure used for such aggregation		Equilibrium Factor (REF) value of 1 was applied, i.e. U3O8/ eU3O8= 1.
		should be stated and some typical examples of such
		aggregations should be shown in detail.
		The assumptions used for any reporting of metal
		equivalent values should be clearly stated.
Relationship		These relationships are particularly important in the		Based on geological mapping work by CPM geologists and structural
between		reporting of Exploration Results.		measurements of drill core, sandstone beds hosting mineralisation are shallowly
mineralisation		If the geometry of the mineralisation with respect to the		dipping (broadly between 10 and 20 degrees). All CPM holes have been drilled
widths and		drill hole angle is known, its nature should be reported.		vertically and true widths of intersections are approximately 95% of the reported
intercept		If it is not known and only the down hole lengths are		downhole widths.
lengths		reported, there should be a clear statement to this
		effect(eg ‘down hole length, true width not known’).
Diagrams		Appropriate maps and sections (with scales) and		Refer to figures in the body of the text.
		tabulations of intercepts should be included for any
		significant discovery being reported These should
		include, but not be limited to a plan view of drill hole
		collar locations and appropriate sectional views.
Balanced		Where comprehensive reporting of all Exploration		All significant results have been reported (see Annexure 2). Historical results have
reporting		Results is not practicable, representative reporting of		previously been reported and are available as open file reports from the NTGS.
		both low and high grades and/or widths should be
		practiced to avoid misleading reporting of Exploration
		Results.
Other		Other exploration data, if meaningful and material,		Preliminary metallurgical test work involving acid and alkaline leach tests on
substantive		should be reported including (but not limited to):		composite mineralised samples were undertaken by AMDEL in March 1976.
exploration		geological observations; geophysical survey results;		AMDEL reported high levels of extraction with a best result of 99% using a pH 1.5
data		geochemical survey results; bulk samples – size and		leachate over 24 hours; acid consumption was low (3 to 5 kg/tonne).
		method of treatment; metallurgical test results; bulk		Petrographic studies were undertaken by AMDEL in 1973-1976 who reported
		density, groundwater, geotechnical and rock		uraninite and coffinite as the dominant uranium minerals in association with pyrite
		characteristics; potential deleterious or contaminating		and ferroselite. More recently (2014) petrographic work conducted by the CSIRO
		substances.		has shown a close association between uranium and detrital-originphyllosilicate

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				minerals including biotite, clays and chromium-bearing chlorite; Walbiri and
				satellite deposits are characterised by low levels of carbonate cement.
Further work		The nature and scale of planned further work (eg tests		Future exploration activities are planned to test extensions and stratigraphic
		for lateral extensions or depth extensions or large-		repeats of Walbiri mineralisation in folded strata of the Mt Eclipse syncline and
		scale step-out drilling).		anticline to the south of the currently known extent of the Walbiri resource.
		Diagrams clearly highlighting the areas of possible		Additional work is planned to rigorously assess the nature and extent of possible
		extensions, including the main geological		uranium series disequilibrium within various mineralised domains to provide a
		interpretations and future drilling areas, provided this		better estimate of the Radioactive Equilibrium Factor (REF).
		information is not commercially sensitive.

Section 3: Estimation and Reporting of Mineral Resources

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Database		Measures taken to ensure that data has not been		Data used in the Mineral Resource estimate was sourced from the original
integrity		corrupted by, for example, transcription or keying errors,		hardcopy. Hardcopy data was converted to digital format and collated, tabulated
		between its initial collection and its use for Mineral		and verified before being validated upon importation into EME’s Geobank
		Resource estimation purposes.		database. CSA Global were provided with a validated Micromine database by
		Data validation procedures used.		EME. Relevant tables from the database were exported to Micromine .DAT format
				for import into Micromine 2014 software prior to use in the Mineral Resource
				estimation.
				Validation of the imported data included checks for missing, duplicated and/or
				incorrectly recorded collar locations, survey data, sample data, gamma log data and
				lithological log data.
				Original historical gamma logs were reprocessed and deconvolved to yield eU3O8
				(ppm) values which correlated well with the historical information stored in EME’s
				archives.
Site visits		Comment on any site visits undertaken by the		No site visits were undertaken by the Competent Person (Mineral Resource
		Competent Person and the outcome of those visits.		Estimation) or CSA Global staff.
		If no site visits have been undertaken indicate why this is		CSA has relied on EME for all data regarding the deposits, and given the current
		the case.		stage of theproject,considers this appropriate.
Geological		Confidence in (or conversely, the uncertainty of the		There is a reasonable level of confidence in the geological interpretation of Walbiri
interpretation		geological interpretation of the mineral deposit.		and the adjacent satellite deposits. The geology is traceable and reasonably
		Nature of the data used and of any assumptions made.		continuous between drill holes and sections. Geological controls such as the dip of
		The effect, if any, of alternative interpretations on		the sedimentary rocks and the definable shale marker beds have been used to
		Mineral Resource estimation.		constrain the extrapolation of mineralisation within stratigraphic bounds. It is
		The use of geology in guiding and controlling Mineral		recommended in future exploration programs that several holes are ‘twinned’ to
		Resource estimation.		validate the historical data and a more detailed estimation of the Radioactive
		The factors affecting continuity both ofgrade and		Equilibrium Factor (REF) be undertaken.

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		geology.		Geological structure and gamma logging have formed the basis for the geological
				interpretation. The REF is assumed to be 1 based on comparison of gamma and
				assays measurements in drill holes (58 pairs) and historical closed can eU3O8and
				assay measurements (103 samples).
				Further work may be required to better define the limits of the mineralisation,
				particularly with depth, but no significant downside changes to the currently
				interpreted mineralised volume are anticipated.
				Mineralisation is primarily concentrated within sandstones between
				siltstone/claystone (‘shale’) lenses and interlayers that form lower and upper
				confining layers.
				Grade continuity is controlled by a reduced zone within partially oxidised sandstones
				and siltstones; regionally the deposits are hosted along the northern margin of the
				Ngalia Basin, which is an elongate intracratonic depression about 300 km long
				(east-west) and 40 km wide (north- south) on average. This basin is filled with late
				Proterozoic to Palaeozoic aged sedimentary rocks, predominantly continental-
				marine arkosic sandstone,and Neoproterozoicglacigene deposits andquartzite.
Dimensions		The extent and variability of the Mineral Resource		Mineralisation is stratiform in nature but is variably distributed along strike and
		expressed as length (along strike or otherwise), plan		at depth due to probable epigenetic modification of the deposit. The dimensions
		width, and depth below surface to the upper and lower		of the Walbiri mineralised domain is approximately 3.6 km along-strike with an
		limits of the Mineral Resource.		average plan width of 300 m and maximum modelled plan width of 1,100 m. The
				total combined strike length of the Walbiri deposit and its two satellite deposits
				(Sundberg and Hill One) is 8.7 km overall. Stratigraphy and mineralisation dips
				between 10 and 18 degrees to the SW. The mineralised interval varies from 0.2 m to
				7.5 m,averaging1.3 m. The model extends from surface to 230 m below surface.
Estimation		The nature and appropriateness of the estimation		Gamma logging has been used for the definition of mineralised intervals and
and		technique(s) applied and key assumptions, including		interpretation (wireframing) of mineralisation. The REF is assumed to be 1. The
modelling		treatment of extreme grade values, domaining,		model consists of 35 mineralised domains defined by wireframe models.
techniques		interpolation parameters and maximum distance of		Grade estimation was carried out using the Multiple Indicator Kriging (MIK)
		extrapolation from data points. If a computer assisted		method using Micromine 2014 software. Downhole and directional indicator
		estimation method was chosen include a description of		semivariograms have been used for to define the distance of interpolation. No top
		computer software and parameters used.		cutting of extreme grade values was undertaken.
		The availability of check estimates, previous estimates		Several in-house, non-JORC, historical resource estimates were undertaken for
		and/or mine production records and whether the Mineral		the Walbiri deposit. In the latest available estimate (November 1976), Australian
		Resource estimate takes appropriate account of such		Mineral Development Laboratories (AMDEL) obtained an estimate of 4,789
		data.		tonnes U3O8for an average grade of 1,140 ppm U3O8(cut-off grade not
		The assumptions made regarding recovery of by-		specified) using chemical assay data and employing geostatistical methods. No
		products.		mining has taken place.
		Estimation of deleterious elements or other non-grade		No assumptions have been made regarding recovery of by-products.
		variables of economic significance (eg sulphur for acid		No other elements were estimated.
		mine drainage characterisation).		The block model was constructed using a 10 m E by 10 m N by 0.5 m RL
		In the case of block model interpolation, the block size in		parent block size,with sub-cellingto 2 m E by2 m N by0.1 m RL for domain

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		relation to the average sample spacing and the search		volume resolution. The parent cell size was chosen on the basis of the
		employed.		morphology of mineralised lenses and in order to avoid the generation of
		Any assumptions behind modelling of selective mining		unrealistically large blocks. The sub-celling size was chosen to maintain the
		units.		resolution of the mineralised bodies. The sub-cells were optimised in the
		Any assumptions about correlation between variables.		models where possible to form larger cells.
		Description of how the geological interpretation was		The search ellipse radii were determined from the ranges of semivariograms:
		used to control the resource estimates.		the main direction being along strike of mineralised bodies (range 90 m), the
		Discussion of basis for using or not using grade cutting or capping.		second direction being down dip of mineralised bodies (range 188.7 m) and the range of the third direction was set at 2.5 m. The first radial dimensions
		The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.		were 10 x 10 x 0.3 m, the second 60 x 127 x 0.3 m, and the third 90 x 188.7 x 0.5 m. The model cells that did not receive grades from the first runs were then estimated using radii incremented by the 90 x 188.7 x 0.5 m (2.5 m).
				No selective mining units were assumed in this estimate.
				Geological boundaries were used to guide the interpretation of mineralised
				lenses. Specifically, mineralisation occur within the shallow dipping 10-18° Mt
				Eclipse Sandstone. For the satellite deposits, the sections contain one drill hole
				only. Grade envelopes at 100 ppm eU3O8were defined for interpretative
				purposes.
				A 200 ppm eU3O8cut-off grade was applied to mineralisation inside envelopes.
				No top cuts have been applied at this stage.
				Validation of the block model consisted of a comparison between the block model
				volume and the wireframed volumes. Grade estimates were validated by visual
				comparison with the drill data. Grade estimation was verified by IDW2 and
				Ordinary Kriging without a top cut applied and with a top cut of 4,100 ppm U3O8
				applied. The block model compared favourably with grade composites for a
				series of sections in different directions (north, east).
				Noreconciliationdatais available at this early stage of the project.
Moisture		Whether the tonnages are estimated on a dry basis or		The tonnages are estimated on a dry basis.
		with natural moisture, and the method of determination
		of the moisture content.
Cut-off		The basis of the adopted cut-off grade(s) or quality		A cut-off grade of 100 ppm U3O8has been used for interpretation and a cut-off
parameters		parameters applied.		grade of 200 ppm U3O8has been used for resource reporting. Based on CSA’s
				experience with this type of deposit, this is considered a reasonable cut-off grade
				which could result in eventual economic extraction.
Mining		Assumptions made regarding possible mining methods,		At this stage of resource development it is assumed that mining would be by open
factors or		minimum mining dimensions and internal (or, if		pit and/or underground methods. Future hydrogeological investigations and
assumptions		applicable, external) mining dilution. It is always		leaching tests would be useful in determining whether solution mining may be
		necessary as part of the process of determining		possible.
		reasonable prospects for eventual economic extraction
		to consider potential mining methods, but the
		assumptions made regarding mining methods and

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		parameters when estimating Mineral Resources may not
		always be rigorous. Where this is the case, this should
		be reported with an explanation of the basis of the
		mining assumptions made.
Metallurgical		The basis for assumptions or predictions regarding		Metallurgical and hydrological test work is required to determine if the deposit is
factors or		metallurgical amenability. It is always necessary as part		amenable to solution mining and/or heap leaching. There is a requirement for a
assumptions		of the process of determining reasonable prospects for		certain level of natural permeability and for mineralisation to occur below the water
		eventual economic extraction to consider potential		table if in-situ recovery is to be considered. Hydrological pumping cluster tests
		metallurgical methods, but the assumptions regarding		would need to be undertaken if the deposit is found to be amenable to in-situ
		metallurgical treatment processes and parameters made		extraction processes.
		when reporting Mineral Resources may not always be
		rigorous. Where this is the case, this should be reported
		with an explanation of the basis of the metallurgical
		assumptions made.
Environmen-		Assumptions made regarding possible waste and		No detailed assumptions regarding possible waste and process residue options
tal factors or		process residue disposal options. It is always necessary		have been made at this early stage.
assumptions		as part of the process of determining reasonable
		prospects for eventual economic extraction to consider
		the potential environmental impacts of the mining and
		processing operation. While at this stage the
		determination of potential environmental impacts,
		particularly for a greenfields project, may not always be
		well advanced, the status of early consideration of these
		potential environmental impacts should be reported.
		Where these aspects have not been considered this
		should be reported with an explanation of the
		environmental assumptions made.
Bulk density		Whether assumed or determined. If assumed, the basis		Bulk density testing was carried out on both mineralised and un-mineralised drill
		for the assumptions. If determined, the method used,		core. EME supplied CSA Global with a table comprising 144 bulk density
		whether wet or dry, the frequency of the measurements,		determinations from 11 drill holes. The rock types found at Walbiri include arkose,
		the nature, size and representativeness of the samples.		sub-arkosic sandstone and shale.
		The bulk density for bulk material must have been		Density estimates were obtained using the Archimedes method on the selected
		measured by methods that adequately account for void		core samples. The balance was calibrated using two standard weights. Hairspray
		spaces (vugs, porosity, etc), moisture and differences		was used to seal the exterior to account for natural porosity (voids) when
		between rock and alteration zones within the deposit.		necessary. Test work to date has shown that there are no significant density
		Discuss assumptions for bulk density estimates used in		differences due to sample porosity or alteration type.
		the evaluation process of the different materials.		An average bulk density of 2.56 t/m3 has been applied to all material in the
				models.
Classification		The basis for the classification of the Mineral Resources		CSA Global has considered several factors in the classification of the Mineral
		into varying confidence categories.		Resources such as search ellipse dimensions, geological data and exploration
		Whether appropriate account has been taken of all		drill holegrids. The Walbiri deposit has been classified as Inferred due to: the

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		relevant factors (i.e. relative confidence in		limited data available for REF definition, the need to verify historical gamma
		tonnage/grade estimations, reliability of input data,		logging by drilling twin holes, and the fact that some exploration sections are
		confidence in continuity of geology and metal values,		based on single drill holes (Sundberg and Hill One deposits).
		quality, quantity and distribution of the data).		The Inferred classification has taken into account all available geological and
		Whether the result appropriately reflects the Competent		sampling information, and the classification level is considered appropriate.
		Person’s view of the deposit.		The Mineral Resource estimate appropriately reflects the views of the Competent
				Persons.
Audits or		The results of any audits or reviews of Mineral Resource		No audits of the Mineral Resource estimate has been undertaken at this time.
reviews		estimates.
Discussion		Where appropriate a statement of the relative accuracy		The relative accuracy of the Mineral Resource estimate is reflected in the
of relative		and confidence level in the Mineral Resource estimate		reporting of the Mineral Resource as Inferred as per the guidelines contained in
accuracy/		using an approach or procedure deemed appropriate by		the 2012 JORC Code.
confidence		the Competent Person. For example, the application of		The resource statement refers to global estimation of tonnes and grade.
		statistical or geostatistical procedures to quantify the		No production data is available for comparison.
		relative accuracy of the resource within stated
		confidence limits, or, if such an approach is not deemed
		appropriate, a qualitative discussion of the factors that
		could affect the relative accuracy and confidence of the
		estimate.
		The statement should specify whether it relates to global
		or local estimates, and, if local, state the relevant
		tonnages, which should be relevant to technical and
		economic evaluation. Documentation should include
		assumptions made and the procedures used.
		These statements of relative accuracy and confidence of
		the estimate should be compared with production data,
		where available.

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