MARMOTA LIMITED — Capital/Financing Update 2015

Jan 27, 2015

ASX ANNOUNCEMENT

28 January 2015

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JUNCTION DAM URANIUM PROJECT EXPLORATION

HIGHLIGHTS:

• Work has continued to progress the Saffron deposit at the Junction Dam uranium project to a Retention Lease

• Saffron deposit shown to have similar extractability potential as the Honeymoon deposit

• Detailed lithological analysis of the host sandstone shows the Saffron deposit is suitable for InSitu Recovery mining

• Recent bottle-roll leaching tests demonstrate high leaching levels

• Outlook for U3O8 pricing has significantly improved

Summation of Test Work

Marmota Energy Limited (ASX: MEU) has recently undertaken bottle-roll leach testing and lithological studies of the host sandstone of the Saffron deposit in its Junction Dam uranium project. These have provided an important insight into the ability to mine the deposit using the In-situ Recovery (ISR) mining method. These studies are also some of the important steps in progressing the Saffron deposit to a Retention Lease (RL).

This latest test work gives Marmota greater confidence that the uranium resource in the Saffron deposit is similar to what has been seen at the Honeymoon mine and in the early stages of the Beverley mine. It is exhibiting key properties required for efficient recovery by ISR methods – the ore is hosted in permeable rock and is readily leached when contacted by acidic leaching fluid.

Background

Marmota is the operator of the Junction Dam uranium project and has 100% of the uranium rights over EL 4509 (Junction Dam - other mineral rights are held by Teck Australia Pty Ltd, Variscan Mines Ltd (ASX: VAR) and Eaglehawk Geological Consulting Pty Ltd) and 100% of EL 5124 (Mulyungarie).

Over a number of years Marmota has undertaken significant uranium exploration over the Junction Dam project. This has included:

• Gravity, radon and electromagnetic data acquisition;

• 248 rotary mud drill holes;

• 11 sonic drill holes;

• Geophysical logging of all drill holes which included some Prompt Fission Neutron (PFN) geophysical logging;

• Geochemical analysis of sonic core samples; and

• Quantitative Evaluation of Minerals by scanning electron microscopy (QEMSCAN) of selected samples from the sonic core.

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Figure 1: Sonic drilling at Saffron deposit 2011

15 Adam Street, HINDMARSH SA 5007 Website. www.marmotaenergy.com.au Email: info@marmotaenergy.com.au Tel: 08 8245 4000 Fax: 08 8245 4099 ACN: 119 270 816 ASX code: MEU

This work has led to the discovery of the Saffron deposit and the Bridget and Yolanda prospects within the Junction Dam project. In relation to these there is:

• A JORC Inferred Resource for the Saffron deposit of 5.4 million pounds with an average grade of 557ppm U3O8 and grades up to 8,142ppm U3O8 contained in 4.36 million tonnes of mineralisation (see ASX Releases of 18 July 2012 and 31 October 2012); and

• An exploration target for the Junction Dam project of 22 million to 33 million pounds of U3O8 (see ASX Release of 9 July 2012).

QEMSCAN analysis of a sample taken from the mineralised interval in drillhole SASO007 at 126.5 metre depth in the Saffron deposit indicated that up to 98% pf the uranium mineralisation in the sample was potentially available to leaching (see 2013 Annual Report).

During late 2013 and in 2014 the uranium mining industry in Australia was in a downturn due to the decreasing uranium spot price and demand. As a result Marmota shifted its exploration focus to other areas of its exploration portfolio. With the recovery in the uranium market towards the end of 2014 and the brightening prognosis for the future of uranium (see discussion later in this update), Marmota has resumed its exploration activities at the Junction Dam uranium project with the objective of progressing the Saffron uranium deposit to an RL.

Bottle-roll Leach Test

ISR mining method provides a lower cost and less environmentally intrusive method of mining the uranium in the Junction Dam uranium project compared to traditional methods. In addition, with the Honeymoon Mine nearby which uses the ISR method and providing a potential route to market, it is important to know whether the Saffron uranium deposit is amenable to the ISR mining method. The preliminary testing for this is usually bottle-roll leach testing which tests whether the uranium can be removed from the host sandstone by this method.

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Figure 2: example of bottle-roll leach test

A series of samples were taken from the mineralised zones of three of the sonic drill holes (details of the holes are provided in Appendix 1). These samples were analysed by Bureau Veritas Minerals Pty Ltd (BVM) using bottle-roll leaching tests to assess uranium dissolution.

The samples from each hole were blended, taking care to preserve the natural grain size, to provide three composite samples for leaching. Head samples were split from each composite; these assayed 730 ppm U3O8 for SASO 002, 300 ppm U3O8 for SASO 005 and 580 ppm U3O8 for SASO 007. Three tests were then carried out at different pH levels (1.5, 2.0, 2.5) all at 40%w/w solids in demineralised water and at 450-500 mV. The pH and oxidation-reduction potential (mV) of the demineralised water were adjusted using sulphuric acid and sodium chlorate respectively. ( means percentage weight of a substance of the total weight at a specified temperature)

Sulphuric acid was used to adjust the pH and sodium chlorate to adjust the oxidation-reduction potential of the uranium. Tests ran for 24 hours with intermediate solution samples collected at 2, 4, 8 and 12 hours. Final solution and residue samples were collected after 24 hours. A summary of the methodology adopted and other relevant information on the leaching tests is set out in the JORC Code Table 1 Report annexed to this Release.

The results were generally higher than is typically achieved for an ISR mining operation and demonstrate that once oxidised, the uranium in the Saffron deposit dissolves very easily in mildly acidic leaching solution. After 24 hours, the proportion of uranium leached (based on the residue assay and solution assays for each test) were as follows:

• Hole SASO 002: 89% at pH 2.5; 84% at pH 2.0; and 97% at pH 1.5;

• Hole SASO 005: 81% at pH 2.5; 91% at pH 2.0; and 94% at pH 1.5; and

• • Hole SASO 007: 87% at pH 2.5; 65% at pH 2.0; and 84% at pH 1.5.

Details of the test results are set out in the table below.

Hole	Bottle	pH	ORP (mV)	Temp (oC)	Est. Acid Consumption (kg/t)	Est. Chlorate Consumption (kg/t)	Feed U3O8 (ppm)*	Residue U3O8 (ppm)	U3O8 Extract (%)
SASO 002	1A	1.5	480	24	19.7	5.4	725	27	97
	2A	2.0	460	24	10.2	8.0	1000	186	84
	3A	2.5	450	23	<1	9.6	1540	186	89
SASO 005	1B	1.5	440	24	21.4	8.0	420	28	94
	2B	2.0	430	24	14.2	11.6	370	38	91
	3B	2.5	430	24	<1	16.0	265	59	81
SASO 007	1	1.5	480	22	13.5	7.0	650	121	84
	2	2.0	470	22	4.8	12.0	800	304	65
	3	2.5	460	22	<1	13.0	550	80	87

• • Feed U3O8 calculated from the residue assay and solution assays for each test

Lithological Analysis

Marmota engaged independent hydrogeologist, Mr Ben Jeuken of Groundwater Science, to undertake an assessment of the permeability of the unconsolidated sediments (Eyre Formation) that host the Saffron deposit. Good permeability is critical in mining by the ISR method to allow the leaching fluids to move through and contact the ore.

Ten sonic core holes drilled by Marmota in 2011 were sampled (see Appendix 2). Geochemical and lithological data used for the analysis was from previous exploration work by Marmota.

Mr Jeuken has concluded that 61% of the intersected mineralisation was contained in clean, fine to coarse grained sands, which are ideally suited to ISR mining. (The QEMSCAN sample taken from the mineralised zone of drillhole SASO007 mentioned above, was contained within this category.)

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Figure 3; Example of sonic core obtained from drilling at Saffron deposit

A further 26% of the intersected mineralisation was moderately amenable to ISR mining because of higher clay content.

These results are consistent with industry standard values for total uranium recovery by ISR methods of around 70% (see IAEA (2001) Manual of acid in situ leach uranium mining technology . International Atomic Energy Agency TecDoc 1239, pp3).

The results are also consistent with a comparable study of the Beverley Deposit undertaken in 1996 prior to its progression to Field Leach Trials (FLT). The Beverley study found 60 to 75% of intersected mineralisation was hosted in sands considered amenable to ISR recovery mining (GeoProjects, (1996) Beverley Uranium Project Distribution of Uranium Mineralisation. Consultant’s Report to Heathgate Resources. Report G8/2.5a V1.0. Released as open file ENV09128).

Next Steps in Progressing to an RL

Feasibility studies into ISR recovery of the Saffron resource will most likely entail an In-Situ Recovery Field Trial (ISR-FT). This work will require a Retention Lease tenure and a Program for Environmental Protection and Rehabilitation (PEPR).

The next task that Marmota will undertake is to establish a network of monitoring wells (piezometers), including one production well to allow pumping tests. The aim is to provide aquifer pressure and chemical data for the mineralised interval, overlying and underlying intervals, and a

lateral pressure gradient across the study site. An illustration of what this might look like is depicted in Figure 4 below:

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Figure 4: Illustration of proposed monitoring wells and pump test. Source:Groundwater Science Confidential Report to Marmota Energy Limited

Once those wells are in place various data will be obtained and analysed to assist in understanding the permeability and the water characteristics of the Eyre Formation in the potential mining area.

Other work that will be undertaken will include a third party wells field survey to include information from those wells in the study, a detailed hydrogeological study of the results from the water monitoring wells and pumping test and the development of an ISR-FT groundwater management plan. From there Marmota will be able to prepare the PEPR necessary for applying for an RL. Once the RL has been granted, Marmota will be able to proceed to conducting the ISR-FT.

Uranium market prognosis

Towards the latter part of 2014 a recovery in the spot price of U3O8 commenced with the price lifting to a high of USD44/lb. By year end that had dropped down to USD35.50/lbwhen in the lead up to Christmas the market evaporated and not surprisingly the price fell. The first part of 2015 has seen a gradual improvement, up to USD36.50/lb* with spot buyers coming back into the market

Interestingly the mid-term and long-term prices remained firm at USD39.00/lb and USD50.00/lb respectively.

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• TradeTech published price indicators

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Figure 5 – TradeTech uranium price indicators 2014 Source: TradeTech, The Nuclear Review, December 2014

The prognosis for further recovery in the U3O8 price is good with Japan commencing the restart of its nuclear reactors in 2015 and the Chinese government looking to approve new coastal nuclear power plant projects in 2015, after suspending approval of new nuclear power projects following Japan's Fukushima accident in March 2011. Added to that, from the Australian perspective, is the expected final sign off for the start of sales of Australian U3O8 to India in the first half of 2015.

Competent Persons Statement

The information in this release that relates to Exploration Results and Mineral Resources is based on information compiled by Dan Gray as Senior Project Geologist of Marmota Energy Limited who is a member of the Australasian Institute of Geoscientists. He has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Gray consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For Further Information Contact:

Marmota Energy Limited

David Williams, Managing Director Daniel Gray, Senior Project Geologist info@marmotaenergy.com.au

15 Adam Street Hindmarsh, South Australia 5007 ABN: 38 119 270 816 T: (61 8) 8245 4000 F: (61 8) 8245 4099 www.marmotaenergy.com.au

Appendix 1

Samples used for bottle-roll leach tests

Hole ID	Easting	Northing	Total Depth (m)	Sample Location (m)
	**(GDA94_Z54) **	(GDA94_Z54)
SASO002	484697	6488368	140	131m depth for a 2 metre interval
SASO005	484577	6488636	132	125.5m depth for a 2 metre interval
SASO007	484727	6488449	140	126.25m depth for a 2.5 metre interval

Appendix 2

Lithological Analysis – Drillhole Details

Hole ID	Easting	Northing	Total Depth (m)
	(GDA94_Z54)	(GDA94_Z54)
SASO001	484798	6488725	140
SASO002	484697	6488368	140
SASO003	484762	6488729	134
SASO004	484502	6489502	131
SASO005	484577	6488636	132
SASO006	484737	6488600	137
SASO007	484727	6488449	140
SASO008	484818	6488379	140
SASO009	484900	6488128	135
SASO010	484805	6488534	137

Map of drill hole locations referred to in Table above

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Note: the holes in denoted in red had the bottle roll testing undertaken on samples from them. Purple line is the tenement’s western boundary

JORC 2012 Code Table 1

Appendix 1

Table 1: Jorc Code 2012 Edition

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	JORC Code explanation		Commentary
Sampling		Nature and quality of sampling (eg cut channels, random chips, or		The Saffron deposit at the Junction Dam project in 2011 was
techniques		specific specialised industry standard measurement tools appropriate		sampled using sonic core drill holes.
		to the minerals under investigation, such as down hole gamma		A total of 10 holes were drilled at the Saffron deposit, these
		sondes, or handheld XRF instruments, etc). These examples should		were twinned holes of previously drilled rotary mud holes
		not be taken as limiting the broad meaning of sampling.		from previous drilling programs conducted by Marmota
		Include reference to measures taken to ensure sample representivity		Energy.
		and the appropriate calibration of any measurement tools or systems		Holes were drilled through the Quarternary cover sediments,
		used.		then the Namba Formation, then through the Eyre Formation
		Aspects of the determination of mineralisation that are Material to the		in which hosts the uranium mineralisation. Sonic core
		Public Report.		samples were only taken in the Eyre Formation.
		In cases where ‘industry standard’ work has been done this would be		All holes were drilled vertical.
		relatively simple (eg ‘reverse circulation drilling was used to obtain 1		All samples were contained in appropriately sized core trays
		m samples from which 3 kg was pulverised to produce a 30 g charge		for transport and storage. All sampling was carried out under
		for fire assay’). In other cases more explanation may be required,		Marmota's sampling protocols and QA/QC procedures as per
		such as where there is coarse gold that has inherent sampling		industry best practice.
		problems. Unusual commodities or mineralisation types (eg		Samples for bottle roll tests were composited across the full
		submarine nodules) may warrant disclosure of detailed information.		thickness of mineralisation.
Drilling		Drill type (eg core, reverse circulation, open-hole hammer, rotary air		10 Sonic core drill holes for a total of 1366m of drilling as
techniques		blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple		twinned holes and monitoring bores.
		or standard tube, depth of diamond tails, face-sampling bit or other		Drilling was undertaken with no sample taken until intercepting
		type, whether core is oriented and if so, by what method, etc).		the Eyre Formation and the mineralised zone. 401m of sonic
				core sample was taken in total from within the Eyre Formation
				which hosts the uranium mineralisation of the deposit.
				Sonic drilling was undertaken using a 4 inch sonic core with 6
				inch casing override.
				A rubber track mounted 300C sonic drill rig was used.
Drill sample		Method of recording and assessing core and chip sample recoveries		Sonic core recoveries of the mineralised intervals within the
recovery		and results assessed.		Eyre Formation were assessed and graded as excellent with
		Measures taken to maximise sample recovery and ensure		close to 100% recoveryattained.

1

Criteria	JORC Code explanation		Commentary
	representative nature of the samples.	Twinned sonic core drill holes support or confirm thickness
	 Whether a relationship exists between sample recovery and grade		and tenor of uranium mineralisation results previously obtained
	and whether sample bias may have occurred due to preferential		from rotary mud drilling techniques.
	loss/gain of fine/coarse material.	No relationship is known to exist between sample recovery
			and grade.
Logging	 Whether core and chip samples have been geologically and	All drill holes have been geologically logged with recording of
	geotechnically logged to a level of detail to support appropriate		lithology, grain size and distribution, sorting, roundness,
	Mineral Resource estimation, mining studies and metallurgical		alteration, oxidation state and colour, and stored in the
	studies.		database. All holes were logged to a level of detail sufficient to
	 Whether logging is qualitative or quantitative in nature. Core (or		support metallurgical studies and the lithological analysis
	costean, channel, etc) photography.		discussed in the release. The holes have not been
	 The total length and percentage of the relevant intersections logged.		geotechnically logged.
		Geological logging is qualitative.
Sub-sampling	 If core, whether cut or sawn and whether quarter, half or all core		The samples were taken by cutting the soft sediments with
techniques	taken.		either a knife or trowel, or a hammer and chisel. All core
and sample	 If non-core, whether riffled, tube sampled, rotary split, etc and		samples were collected on the same side of the core.
preparation	whether sampled wet or dry.		Approximately a quarter of the core was sampled.
	 For all sample types, the nature, quality and appropriateness of the
	sample preparation technique.
	 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 assaying and		Bottle roll tests and subsequent assay were undertaken by a
assay data	laboratory procedures used and whether the technique is considered		NATA accredited laboratory in accordance with standard
and	partial or total.		operating procedures and QA/QC procedures.
laboratory	 For geophysical tools, spectrometers, handheld XRF instruments, etc,
tests	the parameters used in determining the analysis including instrument
	make and model, reading times, calibrations factors applied and their
	derivation, etc.
	 Nature of quality control procedures adopted (eg standards, blanks,
	duplicates, external laboratory checks) and whether acceptable levels
	_of accuracy (ie lack of bias) and precision have been established. _
Verification of	 The verification of significant intersections by either independent or	All drill results are checked by senior Marmota employees or
sampling and	alternative company personnel.		consultants who have adequate experience with uranium

2

Criteria	JORC Code explanation	Commentary
assaying	 The use of twinned holes.	deposits.
	 Documentation of primary data, data entry procedures, data	Currently Marmota has twinned 10 rotary mud drill holes at the
	verification, data storage (physical and electronic) protocols.	Saffron deposit with sonic core drilling techniques. Results
	 Discuss any adjustment to assay data.	obtained from all twinned holes either confirm or support the
		previous results obtained with rotary mud drilling.
		All geological, sampling and spatial data that is generated and
		captured in the field is immediately entered into a field
		notebook computer on standard excel templates. These
		templates are then validated each night by Marmota's
		managing field geologist. Once returning to the office with the
		field data, it is then uploaded into the database where it is then
		validated again. If corrections need to be made, they are
		corrected by the person responsible for generating the data.
		No adjustments have been made to the assay data.
Location of	 Accuracy and quality of surveys used to locate drill holes (collar and
data points	down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Drill hole coordinate information was collected using hand held GPS with an autonomous accuracy of +/- 4 metres utilising
	 Specification of the grid system used.	GDA 94, Zone 54.
	 Quality and adequacy of topographic control.
Data spacing	 Data spacing for reporting of Exploration Results.
and distribution	 Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral	The drill hole spacing of the sonic core holes was based on previous drilling results achieved from rotary mud drilling. 10
	Resource and Ore Reserve estimation procedure(s) and	rotary mud drill holes were selected to be twinned using the
	classifications applied.	sonic core drilling technique, that provided an even distribution
	 Whether sample compositing has been applied.	across the mineralised zone of the deposit with no set grid or
		spacing pattern, but still achieving the results required for the
		assessment.
		Compositing was undertaken for the leachability testing.
		For the leach composite from SASO002 a total of 16 samples
		were composited to make the leaching sample
		For the leach composite from SASO005 a total of 16 samples
		were composited to make the leaching sample
		For the leach composite from SASO007 a total of 20 samples
		were composited to make the leaching sample
Orientation of	 Whether the orientation of sampling achieves unbiased sampling of	All drill holes are orientated vertically. The mineralisation at the
data in	possible structures and the extent to which this is known, considering	Saffron deposit is generally flat across most of its extent,
relation to	_the deposit type. _	contained with the boundaries of the Yarramba

3

Criteria	JORC Code explanation	Commentary
geological	 If the relationship between the drilling orientation and the orientation	Palaeochannel.
structure	of key mineralised structures is considered to have introduced a	Key mineralised structures are generally flat-lying permeable
	sampling bias, this should be assessed and reported if material.	strata that allow the introduction of oxidised fluids. Current
		results indicate that no sampling bias exists in relation to
		drilling direction.
Sample	 The measures taken to ensure sample security.	Company staff collected all laboratory samples.
security		Samples submitted to the laboratory were transported and
		delivered by Company staff.
Audits or	 The results of any audits or reviews of sampling techniques and data.	Marmota's Competent Person has verified that all sampling
reviews		techniques and data collection is of high standard and no
		reviews are required at this stage.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	 Type, reference name/number, location and ownership including	Junction Dam tenement (EL4509) is in joint venture with Teck
tenement and	agreements or material issues with third parties such as joint	Australia Pty Ltd, Variscan Mines Ltd (ASX:VAR) and
land tenure	ventures, partnerships, overriding royalties, native title interests,	Eaglehawk Geologcal Consulting Pty Ltd. Marmota has 100%
status	historical sites, wilderness or national park and environmental	of the uranium rights over the Junction Dam project, all other
	settings.	mineral rights are held by the joint venture partners.
	 The security of the tenure held at the time of reporting along with any	The tenement is located on the pastoral leases of Mulyungarie
	known impediments to obtaining a licence to operate in the area.	and Yarramba Stations.
		There are no third party agreements, no government royalties,
		historical sites or environemntal issues.
		The tenement is in good standing and there are no known
		impediments for exploration on this tenement to Marmota's
		knowledge.
Exploration	 Acknowledgment and appraisal of exploration by other parties.	Marmota has reviewed past exploration data over the region.
done by other parties		The region in which EL 4509 is located has been the subject of mineral exploration in the past by various companies including
		Southern Cross Resources, BHP Minerals and Rio Tinto
		Exploration PtyLtd. Uranium mineralisation was discovered in

4

Criteria	JORC Code explanation	JORC Code explanation	Commentary
			the 1970's within the region.
Geology	 Deposit type, geological setting and style of mineralisation.		Tertiary palaeochannel sediments extend across a large part
			of the project area, which are highly prospective for rollfront
			style uranium deposits associated with the Yarramba
			Palaeochannel system. The system hosts various uranium
			deposits further along the channel from the project area.
			These deposits are evidence that the Yarramba
			Palaeochannel contains the correct environment for rollfront
			style uranium deposits.
			The Yarramba Palaeochannel system is incised into
			undifferentiated Palaeoproterozoic granites and metamorphic
			schists as well as Cretaceous mudstone and shale deposited
			in the Frome Embayment.
			The Yarramba Palaeochannel averages 3 km in width and is
			up to 6 km wide east of Honeymoon. Its shape and sinuosity
			are controlled by the geology and structure of underlying
			rocks, as evidenced by historical drilling and regional airborne
			geophysical interpretations. The uranium that is thought to be
			sourced from weathering uraniferous granites of the Willyama
			Complex is transported in the groundwater through the
			palaeodrainage systems. At the interface of redox boundaries,
			the uranium mineralisation precipitates as coatings of uraninite
			on the quartz sand grains which fill the aquifers. In this porous
			and permeable environment, low grade uranium mineralisation
			is ideally suited to recovery using economic in-situ leach (ISL)
			mining methods.
			The style of uranium mineralisation at the Saffron deposit is a
			mix of roll-front style deposits and tabular-style uranium
			orebodies.
Drill hole	 A summary of all information material to the understanding of the		Drill hole information previously reported on the ASX on 20
Information	exploration results including a tabulation of the following information		February 2012.
	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

5

Criteria	JORC Code explanation	Commentary
	o down hole length and interception depth
	o hole length.
	 If the exclusion of this information is justified on the 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 techniques,	With reporting of assay results a 100ppm cut off was used at a
aggregation	maximum and/or minimum grade truncations (eg cutting of high	minimum distance of 0.3 metre.
methods	grades) and cut-off grades are usually Material and should be stated.	There have been no metal equivalents used.
	 Where aggregate intercepts incorporate short lengths of high grade
	results and longer lengths of low grade results, the procedure used
	for such aggregation 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 reporting of	The mineralisation reported in this release is sub-horizontal
between	Exploration Results.	and all drilling is near-vertical so all mineralisation values can
mineralisation	 If the geometry of the mineralisation with respect to the drill hole	be considered as true widths.
widths and	angle is known, its nature should be reported.
intercept lengths	 If it is not known and only the down hole lengths are 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 tabulations of	See figures in report attached.
	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 Results is not	Drill hole information previously reported on the ASX on 20
reporting	practicable, representative reporting of both low and high grades	February 2012.
	and/or widths should be practiced to avoid misleading reporting of
	_Exploration Results. _
Other	 Other exploration data, if meaningful and material, should be reported	A preliminary metallurgical testing program developed by
substantive	including (but not limited to): geological observations; geophysical	Marmota and Bureau Veritas Minerals Pty Ltd (BVM) has been
exploration	survey results; geochemical survey results; bulk samples – size and	undertaken to ascertain the leach response of the samples
data	method of treatment; metallurgical test results; bulk density,	under typical conditions considering different acid leaching
	groundwater, geotechnical and rock characteristics; potential	routes. The results of this form the substantive aspects of this
	deleterious or contaminating substances.	announcement.
		The test work scope also included investigations into the
		permeabilityof the unconsolidated sediments that host the

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Criteria	JORC Code explanation	Commentary
		mineralisation. Groundwater Science was engaged to
		undertake these studies, utilising data and information
		obtained by Marmota. Results of these studies form the
		substantive aspects of this announcement.
Further work	 The nature and scale of planned further work (eg tests for lateral	The leach test results and the lithological assessment
	extensions or depth extensions or large-scale step-out drilling).	undertaken, indicate that a high percentage of the Saffron
	 Diagrams clearly highlighting the areas of possible extensions,	deposit is permeable and that the uranium mineralisation is
	including the main geological interpretations and future drilling areas,	readily leachable under acidic conditions. Marmota plans to
	provided this information is not commercially sensitive.	incorporate the extraction and geological data into the JORC
		Inferred resource.
		Marmota plans to undertake further detailed testwork in
		subsequent phases of study with the aim of confirming the
		optimum metallurgical extraction.
		A hydrogeological investigation previously completed has
		recommended the establishment of water monitor bores
		(consisting of test bores and one production bore). Marmota
		intend to establish these bores in the future, which will aid with
		the progression of the Saffron deposit to a Retention Lease
		(RL).

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