ENTERPRISE METALS LIMITED — Capital/Financing Update 2009

Mar 31, 2009

ENTERPRISE METALS LIMITED

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ASX ANNOUNCEMENT 1 April 2009

Scout Drilling at Maitland Uranium Project Intersects Uranium Values 100-210 ppm eU3O8

Enterprise Metals Limited (“Enterprise” or “the Company”, ASX: “ENT” ) is pleased to announce the completion of phase 1 of a scout aircore drill program testing its Maitland airborne uranium target. In total, 56 shallow aircore drill holes were completed for a total of 742 metres. The 6 strike kilometres of Enterprise’s Maitland channel prospect were tested with drill lines approximately 1,800 – 2,000 metres apart, with along line hole spacing of approximately 200 metres.

Down-hole gamma logging of the first 30 holes has shown 13 holes with peak analyses of between 100 – 210 parts per million (“ppm”) U3O8 equivalent (“eU3O8 “) within shallow calcrete horizons . Seven holes returned +100 ppm eU3O8 over 1 metre composite intervals. These calcrete horizons are interpreted to be laterally equivalent to the horizons that host Mega Uranium’s Lake Maitland deposit, immediately to the east and downstream.

Pending receipt of assay results for all holes, it is anticipated that further infill drilling will be undertaken to define the extent of the +100 ppm areas.

Enterprise has a 70% interest in any uranium mineralization discovered on the property, and is free carrying Mark Creasy’s 30% interest to completion of a bankable feasibility study.

* Refer to “Background to Logging and Assaying Technique” overpage

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Figure 1. Plan Showing Location of Enterprise Maitland Project

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Introduction

Enterprise’s Maitland project area covers the Lake Maitland drainage channel as it transgresses the Yandal greenstone belt from west to east. Airborne radiometric data over the area displays a prominent uranium anomaly over both Enterprise’s tenements and Mega Uranium’s deposit.

Work Completed

In March 2009, an air-core drilling program commenced over Enterprise’s Maitland channel prospect. The drilling was conducted by GemUp Drilling using a tractor mounted air-core drilling rig, and was supervised by a geologist and geophysicist A total of 56 holes were drilled for a total of 742 metres. All holes were PVC cased and capped at both ends to enable later down-hole gamma logging.

Down-hole gamma logging of the first 30 holes (MAAC001-MAAC030) has now been completed by Down Under Surveys , and the anomalous +100 ppm eU3O8 results in the first 30 holes are shown below in Table 1.

Table 1. Maximum eU3O8 ppm

Hole Number	Easting (m)*	Northing (m)*	Down Hole Depth (m)	Gamma Counts/second (cps)	eU3O8 (ppm)*
MAAC001	305998	6993087	3.19	238.89	104
MAAC002	305800	6993100	0.48	282.22	123
MAAC015	304100	6997000	4.86	234.15	102
MAAC016	304107	6996801	9.29	231.43	100
MAAC018	304102	6996415	9.34	322.22	140
MAAC019	304105	6996195	8.29	419.57	182
MAAC020	304093	6996003	8.32	253.57	110
MAAC022	304114	6995610	5.12	327.42	142
MAAC026	300512	6997002	6.09	389.09	169
MAAC027	300502	6996807	8.8	438.1	190
MAAC028	300491	6996591	4.13	271.79	118
MAAC029	300497	6996390	8.63	483.05	210
MAAC030	300500	6996198	4.16	302.86	132

* All co-ordinates are in MGA94, Zone 51.

The locations of all drill holes drilled to date are shown overleaf in Figure 2, with anomalous holes represented by white dots.

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ENTERPRISE METALS LIMITED

When composited to a minimum intersection length of 1 metre, seven holes returned +100ppm eU3O8 over 1 metre. (Refer Table 2 below)

Strip logs for holes MAAC027 and MAAC029 are shown overleaf to illustrate the distribution of uranium in these holes.

Table 2. 1 Metre Composite : eU3O8 > 100ppm

Hole Number	Depth From (m)	Depth To (m)	Gamma Cps	eU3O8 ppm
MAAC019	8	9	236.94	103
MAAC026	6	7	238.56	104
MAAC026	9	10	262.04	114
MAAC027	5	6	230.55	100
MAAC027	8	9	254.50	111
MAAC027	9	10	285.78	124
MAAC029	9	10	240.97	105

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Figure 2. All Enterprise Drill Hole Locations, Over Airborne Uranium Image

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ENTERPRISE METALS LIMITED

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ENTERPRISE METALS LIMITED

BACKGROUND TO MAITLAND PROJECT

The initial discovery of uranium mineralisation at Lake Maitland resulted from a regional aerial radiometric survey by the Bureau of Mineral Resources (BMR). Subsequent exploration programs included more detailed radiometric surveys, geological mapping, auger, RAB and aircore drilling which led to the discovery of what is now Mega Uranium’s Lake Maitland uranium deposit ( published resource of 32.7 Mt at 330 ppm U3O8 using a cut off grade of 100 parts per million ).

Enterprise’s Maitland Project lies immediately upstream from Mega’s deposit. This area, north of the mothballed Bronzewing gold mine, has been extensively explored for gold, but there has been very little work carried out specifically targeting uranium.

Uranium is dissolved in the weathering processes of certain Archaean granitic rocks in Western Australia’s Yilgarn Craton. It is believed that the Maitland Project bears multiple sites where potential exists for dissolved uranium, transported down the Lake Way-Centipede drainage system, to have been chemically re-concentrated into high grade carnotite deposits.

The WA State government announced in mid December 2008 that it had received an application from Mega Uraniuam to mine its Lake Maitland deposit. The press also reported that Mega’s deposit is currently the 5[th] largest in WA, and has an in-ground value of between $1.3 billion and $4.6 billion.

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Dermot Ryan Managing Director

Contact:

Telephone: 08 9436 9200 Facsimile: 08 9436 9299 Email: admin@enterprisemetals.com.au

The information in this announcement that relates to Exploration Results has been reviewed by Mr Dermot Ryan, who is a Fellow of the Australian Institute of Geoscientists, a Fellow of the Australasian Institute of Mining and Metallurgy, a Chartered Professional and a full time employee of geological consultancy XServ Pty Ltd. Mr Ryan has sufficient relevant experience in the styles of mineralisation and types of deposit under consideration, and in the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code), and consents to the inclusion of the information in the form and context in which it appears .

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ENTERPRISE METALS LIMITED

Background to Logging and Assaying Technique

Enterprise Metals Limited uses total count gamma logging as it's primary method for eU3O8 assays. The gamma probe samples a volume around the crystal that has a radius of approximately 35cm when compared to a drillhole of radius 5cm. Thus a calibrated total count gamma probe is likely to be more accurate than drillhole samples due to the larger in-situ sampling volume. From literature review on other calcrete deposits, disequilibrium between uranium and its daughter products is not considered a major problem when using total count gamma logging to calculate eU3O8 grades. The literature rewiew showed disequilibrium factors ranging from 0.8 to 1.6 but having a mean value close to 1.0.

Logging Procedure

All Enterprise’s drill holes were gamma logs with Probe S792, at a constant depth interval of 2cm using a logging speed of approximately 2m/minute. The slow logging speed and short recording interval was chosen to give a very detailed profile of the gamma distribution in each drillhole. The gamma probe detects radiation in a roughly spherical volume (radius approximately 35cm. The gamma counts are equivalent to the gradex thickness product of the mineralisation adjacent to the hole. The probe detects a mineralised zone approximately 35cm from it's edge and continues to detect the zone for another 35cm after passing through it. Whilst in the mineralised zone, the probe can achieve a count rate proportional to the grade if it's detection volume is wholly within the mineralise zone. The true thickness and grade of a zone can be determined where its thickness is greater than 70cm thick and of uniform grade. For mineralised zones less than 70cm thick the probe can only determine the grade thickness product of the zone.

For zones greater than 70cm, the edge of mineralisation occurs at the half maximum amplitude point on the gamma logs and the true grade is represented by the maximum amplitude. For zones less than 70cm the edge of the mineralisation will be closer to the peak but cannot be accurately determined and the true grade will be unknown but greater than the maximum amplitude. No filtering of the logs has been applied to the gamma logs.

Calibrations and Corrections

The S792 probe was calibrated at Australian Mineral Development Laboratory's (AMDEL) test pits in Adelaide (now administered by the South Australian Department of Mines & Energy (SADME). Appendix 1 contains a report on the calibration of probe S792. Table II shows these results for probe S792.

Table II S972 AMDEL Calibration Results

Test Pit	Thickness	Grade	CPS	Grade	CPS Thicknes s*	Calibration	Calibration
	(m)	% U3O8		eU3O8 (ppm)		%U3O8 (K- Factor)	eU3O8 ppm (K-Factor)
AM1	1.38	0.219	4668	2190	6441.84	0.00004692	0.46915167
AM2	1.43	0.92	1653 4	9200	23643.62	0.00005564	0.55642918
AM3	1.34	0.054	1232	540	1650.88	0.00004383	0.43831169
					Average	0.00004880	0.48796418

The standard method of quantitative interpretation of gamma logs are based on the assumption that the area beneath the gamma log or the amplitude of the response is directly proportional to the quantity of radioactive material causing the anomly.

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ENTERPRISE METALS LIMITED

• i.e. GT = KA where G is the average grade over a zone T meters thick

K is the calibration constant of the probe

• G = KI where I is the count rate at any point on the log

K is the calibration constant of the probe

• G is the grade at that point

From Table II the K calculated for three different zones is different for each of the zones. This indicates that the relsationship between counts per second and grade is not linear. In Figure 1. The calibration data for probe S972 is shown. The figure shows a linear best fit for the data (black) and a polynomial best fit for the data.

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Figure 1. Probe S972 AMDEL Calibration

Table III shows the grade calcultaions using the best fit linear and bets fit polynomial equations. Clearly the polynomial equation provides a better estimate of the uranium grade. The polynomial method also has the advantage in that it provides the best fit to the three different calibration pit grades without the need to calculate dead times. It also compensates for the increasing dead time with count rate and the increasing ‘Z effect’ at higher grades. Simple substitution of the measured count rate in the equation representing the polynomial curve fit will give the equivalent U3O8 in ppm.

Table III – AMDEL Grade Calculations

CPS	Grade	Linear	Poly
	eU3O8 (ppm)	eU3O8 (ppm)	eU3O8 (ppm)
4668	2190	2368.5232	2188.07146738
16534	9200	9160.6216	9201.75078124
1232	540	401.7568	546.16477978

Hole size corrections for ethe probe were measured in pit AM7. This pit has 5 different hole sizes through the same mineralised zone. Figure 2 shows the hole diameter correction factor for probe S792. See Appendix I for the AMDEL measurements that were used to derive this correction factor. The November 2007 drilling program had aircore holes with a diameter of 55mm thus a 0.92 correction factor needs to be applied to th raw gamma counts prior to caluclating eU3O8.

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Figure 2. S792 Hole Diameter Correction Factor

Note: Calibrations in air filled holes were not possible when the calibrations were done at the SADME facility. No correction has been applied to the counts to correct for air filled holes. All Prime gamma logs had a drill hole diameter correction factor (0.92) applied to the raw gamma counts prior to caluclating eU3O8 using the polynomial equation:

eU3O8 ppm = 7.399E-07 _x_ [2] +0.4341 _x**_

where x is gamma counts per second (drill hole diameter corrected)

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