MARMOTA LIMITED — Capital/Financing Update 2011

Mar 16, 2011

ASX ANNOUNCEMENT 17[th] March 2011

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SIGNIFICANT IRON AND MANGANESE RESULTS AT MARMOTA ENERGY’S WESTERN SPUR PROJECT

• Further significant results at Western Spur.

• Up to 58.94% Fe returned from assay from continuous outcrop.

Marmota Energy Limited • Up to 28.07% Mn rock chips. ACN: 119 270 816

ASX: MEU • extending to depth. Exploration Office:

Unit I, 5 Butler Blvd • Immediate follow up programs being planned Burbridge Business Park, SA 5950

• Historic mine shafts discovered displaying visible iron mineralisation extending to depth.

Western Spur project

P: +61 8 8375 4300 (100% Marmota Energy ASX: MEU) F: +61 8 8375 3999 Marmota Energy Limited (ASX: ‘’MEU’’) is pleased to announce significant E: info@marmotaenergy.com.au assay results from a follow up rock chip sampling program completed at its 100% owned Western Spur (EL 4528) project. W: www.marmotaenergy.com.au

Western Spur is located approximately 60 km north west of Lake Frome in the north east of South Australia covering approximately 393 square kilometres. The project is adjacent to Marmota’s significant tenement position in the uranium rich Frome Embayment. Western Spur is considered to be prospective for both uranium and base metals.

Grades ranging up to 58.94% Fe , and 28.07% Mn were returned from samples covering a further two untested outcrops (Table 1). Samples have now been obtained from outcropping units at locations 1, 4 and 6 (Figure 1). Outcrop at location 4 has a continuous strike length of approximately three kilometres.

A second sampling program was undertaken following the return of significant The information in this report that relates to Fe assay results from rock chip sampling of haematite completed at outcrop 1 Exploration Results, Mineral Resources or Ore Reserves is based on information in January this year. All 25 samples taken under the initial program returned Fe compiled by Mr D J Calandro, who is a grades greater than 52%. The second phase of sampling was designed to assess Member of the Australian Institute of Geoscientists. Mr Calandro is employed the potential of previously untested iron-rich outcrops. During the program full time by the Company as Managing several previously unknown historic mine shafts were discovered, showing iron Director and, has a minimum of five years relevant experience in the style of mineralisation extending to approximately 25 metres in depth (Figure 2). mineralisation and type of deposit under consideration and qualifies as a Competent Person as defined in the 2004 The grades of iron along with acceptable levels of deleterious factors edition of the “Australasian Code for (aluminium, silica, phosphorus and loss of ignition) are comparable to those in Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr commercial iron ore operations. Calandro consents to the inclusion of the information in this report in the form and This phase of the program was also designed to follow up on manganese context in which it appears. exploration by Western Mining Corporation (WMC) in the early 1980’s. WMC’s exploration tested a very small percentage of the outcrops on the project and reported zones of mineralisation achieving greater than 30% Fe.

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Figure 1: Google Earth image of EL4528 with outcrop locations circled in red.

The project area has good access to road infrastructure with the potential mineralised outcrops occuring in gently undulating terrain facilitating good access.

The initial results from Western Spur have demonstrated very good iron/manganese exploration potential for the project.

Marmota plans to carry out geophysical surveys to better define the extent of potential iron and manganese mineralisation beneath the shallow sedimentary cover.

This data will be used to identify targets for drill testing.

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Figure 2: Photograph of historic mine shaft with visible iron mineralisation extending to depth at outcrop 4.

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Figure 3: Visible iron outcrop sample site.

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Table 1. Assay results from sampling completed at outcrop 1.
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Figure 4: Photograph from top of outcrop 4 extending for approximately 3 kilometres into the distance highlighted by red dash line.

Figure 5: Photograph of manganese outcrop sampled during this phase.

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SAMPLE ID EASTING NORTHING Al2O3%	Fe2O3 % Fe % K2O % LOI % Mn % P % SO3% SiO2%
47801 324313 6693368 0.79 47802 324300 6693277 0.65 47803 324249 6693244 1.79 47804 324372 6693107 0.66 47805 324390 6693056 0.96 47807 324604 6692564 1.15 47808 324663 6692488 1.41 47809 324903 6692446 1.21 47810 324927 6692395 0.83 47811 324862 6692261 0.73 47812 324913 6692235 0.65 47813 324918 6692127 0.96 47814 324954 6692155 0.74 47815 325037 6692081 0.8 47816 325072 6691981 0.56 47817 325093 6691902 0.65 47818 325117 6691909 0.88 47819 325051 6691899 0.69 47820 325087 6691807 0.98 47821 325128 6691804 0.81 47822 325003 6691782 0.75 47823 324968 6691727 0.5 47824 325081 6691771 0.58 47825 325122 6691780 1.15 47828 323917 6694124 2.01 47829 323877 6694055 0.79 47830 323800 6694020 1.01 72026 325175 6689499 1.04 72027 325120 6689483 0.57 72028 325095 6689457 0.85 72029 325032 6689463 0.68 72030 325033 6689528 0.66 72031 324981 6689559 0.92 72032 324958 6689625 1.71 72033 324866 6689597 0.47 72034 324862 6689522 0.56 72035 324875 6689459 0.57 72036 324955 6689462 0.8 72037 324214 6689015 0.68 72038 324203 6689039 1.14 72039 324461 6689189 0.43 72040 324517 6689277 1.1 72041 324637 6689308 0.76 72042 324767 6689350 0.55 72043 324861 6689299 1.42 72044 324967 6689311 0.7 72045 325070 6689236 1.42	74.92 52.39 0.06 12.89 1.45 0.33 0.22 2.98 79.58 55.65 0.04 11.58 2.11 0.33 0.192 2.85 63.5 44.41 0.19 14.46 0.88 0.31 0.738 5.22 67.36 47.10 0.13 12.25 9.62 0.45 0.23 2.12 39.65 27.73 0.43 13.51 27.40 0.26 0.165 2.43 78.97 55.22 0.15 11.36 2.30 0.59 0.184 2.75 61.37 42.92 0.26 12.56 12.98 0.39 0.161 3.63 42.21 29.52 0.24 13.12 28.07 0.31 0.13 1.85 51.31 35.88 0.1 15.52 13.76 0.69 0.442 3 67.79 47.41 0.07 14.67 3.38 0.38 0.285 2.22 68.73 48.06 0.08 14.32 4.25 0.26 0.085 2.54 78.05 54.58 0.13 11.58 3.44 0.32 0.157 2.53 67.73 47.36 0.09 11.86 11.39 0.32 0.074 1.88 61.04 42.69 0.15 12.19 15.73 0.34 0.179 2.05 82 57.34 0.01 11.24 0.52 0.43 0.536 3.32 67.51 47.21 0.34 11.71 9.74 0.36 0.22 2.59 75.77 52.99 0.12 11.71 4.85 0.43 0.216 2.35 73.17 51.17 0.08 13.05 2.26 0.41 0.257 2.7 70.17 49.07 0.18 12.1 8.20 0.40 0.169 2.08 68.86 48.15 0.16 11.73 10 0.42 0.111 2.15 60.88 42.57 0.18 14.41 9.13 0.31 0.253 2.17 52.79 36.92 0.05 17.66 4.19 0.45 0.321 1.63 73.63 51.49 0.09 11.22 4.48 0.67 0.188 2.49 60.91 42.59 0.31 12.66 13.43 0.44 0.082 2.4 61.44 42.97 0.36 13.13 4.87 0.49 0.656 6.9 52.6 36.78 0.41 14.52 16.18 0.46 0.087 1.92 41.34 28.91 0.4 17 15.46 0.35 0.978 2.74 54.81 38.33 0.12 15.14 9.96 0.42 0.315 2.47 67.11 46.93 0.02 15.47 1.66 0.29 0.309 1.91 56.31 39.38 0.06 15.31 10.79 0.36 0.202 1.95 65.21 45.6 0.07 13.94 5.34 0.55 0.236 1.99 51.14 35.76 0.19 17 8.93 0.34 0.403 2.61 67.6 47.27 0.1 10.61 10.41 0.27 0.087 2.2 79.73 55.76 0.21 11.35 1.11 0.34 0.141 3.38 84.28 58.94 0.01 11.1 0.38 0.34 0.088 2.05 82.7 57.83 X 11.32 0.37 0.48 0.131 1.98 83.79 58.59 0.01 11.4 0.22 0.35 0.129 2.29 64.56 45.15 0.14 12.55 12.64 0.38 0.147 1.65 75.34 52.69 0.06 10.56 1.73 0.37 0.515 8.2 73.74 51.57 0.1 11.01 1.61 0.27 0.3 8.87 59.86 41.86 0.04 14.65 4.61 0.52 0.294 2.56 54.69 38.24 0.07 17.03 4.45 0.47 0.264 3.26 55.83 39.04 0.17 13.21 11.61 0.92 0.6 2.38 64.76 45.29 0.03 15.39 1.58 0.59 0.26 2.64 75.66 52.91 0.18 11.29 3.51 0.49 0.154 2.96 54.03 37.78 0.33 12.87 20.05 0.36 0.053 1.72 53.7 37.55 0.53 12.71 17.66 0.73 0.206 3.09

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72046	324771	6691728	0.64	81.22	56.80	0.02	11.49	0.54	0.32	0.363	4.13
72047	324848	6691829	0.68	83.8	58.60	0.08	10.87	0.66	0.30	0.563	1.59
72048	324883	6691851	0.64	81.41	56.93	0.1	11.53	0.54	0.37	0.408	2.45
72049	324156	6693364	0.87	54.4	38.04	0.18	17.23	6.87	0.25	0.385	2.06
72050	324203	6693361	0.92	61.31	42.87	0.09	14.78	5.24	0.35	0.473	2.58

‘X’: denotes below detection limits.

Table 1: Table of assay results from Phase 2 sampling program.

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Mr Dom Calandro MANAGING DIRECTOR 17 March 2011