NEURIZER LTD — Interim / Quarterly Report 2007

Oct 17, 2007

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18 October 2007

Manager Companies Company Announcements Office Australian Stock Exchange Limited

By E-mail: ASX On-line

Dear Sir/Madam

ASX Code: MTN Quarterly Activity Statement and Appendix 5B

Please find attached Marathon’s Quarterly Activity Report and Appendix 5B Quarterly Report for the period ending 30 September 2007.

Yours faithfully

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Sam Appleyard

Company Secretary

Enc: Quarterly Activity Report and Appendix 5B

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18[th] October 2007

COMPANY ANNOUNCEMENTS OFFICE - AUSTRALIAN STOCK EXCHANGE

ASX CODE MTN

QUARTERLY ACTIVITY REPORT 1 JULY 2007 – 30 SEPTEMBER 2007

Marathon is pleased to present its activity report for the quarter ending 30 September 2007, covering a period of good progress at our Mt Gee site and continuing exploration on Marathon’s other tenements (Figure 1).

The focus of activity during the quarter was the further development of Mt Gee including

• Announcement of a non-renounceable rights issue on a 1-for-5 basis at $2.50 per share;

• Announcement of a resource update;

• Completion of preliminary metallurgical test work;

• Finalisation of the Coffey Mining Pty Ltd Scoping Study;

• Commencement of diamond drilling to obtain geotechnical data, twinning of RC drill holes and metallurgical samples;

• Continuation of other data acquisition activities ahead of a pre-feasibility study planned for next year; and

• Establishment of the North Flinders Community Consultation Committee.

Figure 1: Marathon’s Exploration Licenses in South Australia and Western Victoria (Landsat Image courtesy Geoscience Australia)

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|||
|---|---|
|Mt Gee|EL 3258|
|Mabel Creek|EL 3324|
|Woorong Creek EL 3455|
|Mulga Well|EL 3211|
|Coondambo|EL 3593|
|Pinda Springs|EL 3159|
|Mongolata|EL 3164|
|Kalymna|EL 4526|
|McDowell Hill|EL 3474|
|Tallaringa|EL 3497|
|Bon Bon|EL 3540|
|Blanchetown|ELA 251/07|
|Paragon Bore|EL 3562|

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Rights Issue

On 28[th] September 2007, the Company announced a 1-for-5, non-renounceable rights issue to raise up to $27 million to progress work at Mt Gee and other exploration tenements, as well as provide general working capital.

Revised Resource Estimate

The Company announced a revised resource estimate for its Mt Gee uranium deposit in the northern Flinders Ranges of South Australia on 17[th] September 2007.

The revised resource estimate is as follows:

Resource Category	Resources Tonnes*	GradeU3O8*	TonnesU3O8*
Indicated	3.1 Mt	717 ppm	2.2 Kt
Inferred	39.7 Mt	622 ppm	24.7 Kt
Total	42.8 Mt	629 ppm	26.9 Kt

• At 300 ppm U3O8 cut off

This compares to the previous estimate – released in August 2006 - of 45.6Mt of mineralisation at 680 ppm for 31.2 Kt of U3O8 .contained, also at 300 ppm U3O8 cut off.

At alternative cut-off grades, the resource estimate is as follows:

Cutoff ppm	Resource Tonnes	Grade U3O8	Tonnes U3O8
300	42.8 Mt	629 ppm	26.9 Kt
400	37.2 Mt	670 ppm	24.9 Kt
500	28.5 Mt	735 ppm	20.9 Kt
600	18.4 Mt	840 ppm	15.5 Kt
700	13.1 Mt	920 ppm	12.1 Kt

The Company’s revised resource estimate is based on an independent assessment of the resource prepared by Tony Marshall of SMG Consultants Pty Ltd (“SMGC”).

The SMGC assessment is based on historical drilling by Marathon and others, including the most recent drilling program, comprising 72 holes for 15,390 metres drilled, completed in March 2007.

While the revised resource estimate represents a small decrease compared with the August 2006 resource estimate, the area to which the revised estimate relates overlaps only 60% of the previous estimate area. The reduction in the estimate area is a result of a revision to the underlying resource model which does not allow the Company to assume the same level of grade continuity as previously modelled.

As a result, the remaining 40% of the August 2006 estimate area has been excluded from the revised estimate, but continues to represent excellent exploration potential for the project. The same resource model has resulted in a relatively small proportion of the resource being upgraded to Indicated Resource status, contrary to earlier expectations.

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2007 SMGC – Resource area polygons – coincidental with EGC
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Area= 337,828 sqm 53% of original EGC area
60% of EGC with exclusion zone
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Marathon will continue to build its understanding of the U3O8 resource based on further drilling and will revise its estimates as new information comes to hand. As a result of the revised resource model, the Company is re-appraising its exploration strategy at Mt Gee with a view to developing an optimum plan to upgrade a significant portion of the Inferred Resource to Indicated Resource status.

The Mt Gee project remains one of the largest un-developed uranium deposits in Australia, with excellent exploration potential and good prospects for upgrades/additions to the current resource figure.

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Figure 3: EL 3528, The Paralana Mineral System within the Mt Gee project area

Preliminary Metallurgical Testwork

A report has now been received on recent metallurgical test work undertaken by the Australia Nuclear Science and Technology Organisation (ANSTO) on samples from 6 RC drill holes completed as part of the Q1 2007 Mt Gee drilling program.

This preliminary test work suggests that uranium can be readily extracted from the one Mt Gee composite sample tested under moderate leaching conditions, for relatively low reagent additions.

Further test work is scheduled on diamond drill cores to better understand the metallurgical performance of Mt Gee material.

Final Scoping Study

Marathon also announced during the quarter that it had received the final report on the scoping study on Mt Gee conducted by Coffey Mining Pty Ltd (a subsidiary of Coffey International Ltd).

This final report reaffirms the recommendation made in the interim report (the results of which were announced in Marathon’s June Quarterly Report) that underground mining is the preferred option – from both an economic and environmental perspective – for the Mt Gee uranium deposit with ore transported to a processing plant outside the area of environmental and social significance at Mt Gee.

The final scoping study report takes into account preliminary metallurgical test work results that the Company recently released to the ASX.

The scoping study assessed:

• an operation processing approximately 1.5 million tonnes per annum at 760 ppm U3O8.

• production of about 900 tonnes per annum of U3O8 using conventional atmospheric tank leaching (or slightly less using heap leaching).

• a mine life of 13 years.

Marathon emphasises that additional metallurgical testing needs to be completed, and further geotechnical data accumulated, before accurate processing and mining conclusions can be reached. Further, Coffey has recommended investigation of several mining, processing and material movement options in the pre-feasibility study.

Current Drilling Programme

Another round of diamond drilling commenced at Mt Gee to obtain geotechnical data, twinning of RC drillholes and metallurgical samples. At the end of the period 6 holes for 1190m, of the 13 hole 3100m program, have been completed; analytical results are pending.

Commencement of Approval process

An application for a ‘‘referral’’ was submitted to the Commonwealth Department for the Environmental and Water Resources (DEWR) under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (the Act) for the Mt Gee uranium project.

The purpose of the submission is to seek confirmation that the project is a ‘‘controlled action’’ under the Act, and to trigger a consultation process between DEWR and the relevant South Australian authorities as to the appropriate environmental approval processes for the project.

Marathon has nominated the project as a ‘‘controlled action’’ and volunteered to complete an Environmental Impact Statement (EIS) as part of its Mt Gee project evaluation.

This marks the start of the approval process for the project, but shareholders are advised that this is likely to be an extended process involving not only production of an EIS, but extensive public consultation.

Authorisation for drilling of investigative wells for groundwater was also progressed.

North Flinders Community Consultation Committee (NFCCC)

Following stakeholder consultation, Marathon announced the formation of the NFCCC, which comprises local members from the State and Federal governments (or their alternates) and representatives of local landowners, graziers, tourism operators and the indigenous community.

The aim of the Committee is to act as a forum for the Company and the local community to regularly meet and discuss progress at Mt Gee and any issues of concerns that may arise.

The NFCCC is chaired by the Honourable Neil Andrew, the former Federal Speaker of the House of Representatives. It held its first meeting on 28th August 2007 at Leigh Creek.

Glendambo (IOCG Cu-Au-U)

ASX-listed UraniumSA Ltd continued exploration over ELs 3211, 3474 and 3540 (Mulga Well, McDowell Hill and Bon Bon respectively) for palaeochannel uranium under its joint venture agreement with Marathon. UraniumSA announced the completion of the AEM survey of the Kingoonya Palaeodrainage on the 28/7/2007, clearly defining the position of the channel through EL 3211.

The Company has completed detailed close spaced soil sampling to complete the targeting of structures hosting radiometric anomalism. A drilling program will be developed and contractors sought to complete the program in early 2008.

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Figure 4:AEM Responses through Marathon-UraniumSA JV tenements. (Image courtesy of UraniumSA webpage)

Mongolata (Au, Au-Cu)

Marathon is in process of negotiating a joint venture with a private operator over the eastern portion of EL 3164. Details will be announced when documentation is lodged with appropriate authorities.

Pinda Springs (Cu-Au, Zn-Pb) (EL 3159)

No work undertaken.

Western Victoria

At Kalymna, located 30km southwest of Ararat, in Victoria, the results from the air core drilling completed during January 2007 define a zone >900m along the Moyston Fault showing strongly elevated or anomalous results. The air core drilling around the RC drilling extended the area potentially hosting a mineralised “shoot”.

The Company has finalised a drilling program and the Work Plan will be lodged with the Victorian DPI in the near future.

Figure 5: Location of Significant Results from Air Core Drilling along the Moyston Fault.

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Warburton joint venture

Work has commenced on the joint venture with ASX-listed Primary Resources Ltd to explore Primary’s Warburton tenements in Western Australia. The joint venture covers seven tenements or tenement applications, on which Marathon is committed to spent an initial $850,000 of a total of $3.25 million (in several tranches) to earn a 70% interest in the tenements. The tenements, covering about 1,500 sq km, are located in an area of strong gravity and magnetic anomalism and where the regional geology is indicative of extensive tectonic activity (Figure 6). These encouraging features, coupled with significant radiometric anomalies, confirm the project area as having potential for uranium as well as nickel and other commodities.

The gravity survey was completed in early September and the data is currently being interpreted in conjunction with the aeromagnetic data.

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Figure 6: Location and regional gravity map of Warburton and Egerton Projects with tenement outlines

Blanchetown ELA

Grant of the EL is awaited to follow-up on indications of heavy mineral concentrations identified by previous explorers.

Little Yalmy/Deddick River

Mararthon has applied for two exploration licences covering 589 km[2] in eastern Victoria, which cover areas of significant gold anomalism in stream sediments and large areas which have not been subject modern exploration. Located at the southern limits of the Lachlan Fold belt, the tenements have potential for large low grade Cu/Au mineralisation systems or smaller high grade Au deposits.

Stuart Hall

Chief Executive Officer

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves has been compiled by Mr Allan Younger, full time Chief Geologist of Marathon Resources Ltd and a Member of the Australasian Institute of Mining and Metallurgy. Mr Younger has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person for the purposes of the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Younger consents to inclusion in the report of these matters based on their information in the form and context in which it appears.

Contact:

Stuart Hall Belinda Yates Chief Executive Officer Corporate Affairs Manager Tel (08) 8348 3500 Tel 0439 795 521

Notes to Editor

Marathon Resources is a minerals exploration company focused on the development of Mt Gee, one of Australia’s largest undeveloped uranium deposits.

The Mt Gee project is located within the Paralana Mineral System of South Australia, a uranium-rich state which is home to the world’s largest uranium deposit at Olympic Dam. Mt Gee has an Indicated plus Inferred Resource of 42.8 million tonnes of uranium mineralisation averaging 0.063% U3O8, or 59 million pounds of contained U3O8.

Marathon’s portfolio includes highly prospective copper-gold-uranium properties in the Gawler Craton of South Australia and other gold and coppergold projects in South Australia and western Victoria, including first class copper-gold and base metal (silver-lead-zinc) projects in the Adelaide Geosyncline in South Australia and a prospective copper-gold project in the Moyston Fault Zone in Victoria.

Marathon also has a joint venture with listed uranium explorer UraniumSA Ltd (ASX: USA), in which the company holds a 7% stake; and with Primary Resources Ltd (ASX: PRZ) in the Warburton Project in Western Australia.

Marathon Resources listed on the Australian Securities Exchange on 15 March 2005, under the stock code of MTN. www.marathonresources.com.au

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Name of entity
MARATHON RESOURCES LIMITED
ABN 31 107 531 822	Quarter ended (“current quarter”)
31 107 531 822	30~~th~~September 2007

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other – Takeover defence – Drilling Advance Net Operating Cash Flows	Current quarter $A’000	Year to date (3.months) $A’000
	- (1144) (754) - 77 - - (177) -	(1144) (754) - 77 - - (177) -
	(1998)	(1998)
Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	(67) - - -	(67)
	(67)	(67)
	(2065)	(2065)

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	1.13 Total operating and investing cash flows (brought forward)	1.13 Total operating and investing cash flows (brought forward)	(2065)	(2065)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other –Prospectus & Supplementary Prospectus Net financing cash flows			523 - - - - -	523
			523	523
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter			(1542) 1984 -	(1542) 1984 -
			442	442
Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities
1.23 1.24		Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10		Current quarter $A'000
				131
				Nil
1.25 Explanation necessaryfor an understandingof the transactions Note announcement of Rights Issue on 28thSeptember 2007 Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Nil 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest Nil		Explanation necessaryfor an understandingof the transactions
		Note announcement of Rights Issue on 28thSeptember 2007
	Nil
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	Nil

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	Nil	-
	Nil	-

Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter

	Estimated cash outflows for next quarter
	4.1 Exploration and evaluation 4.2 Development		$A’000
			2000
	Total		2000
	Reconciliation of cash
	Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000		Previous quarter $A’000
	5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	87		328
		355		1656
		-		-
		-		-
	Total: cash at end of quarter(item 1.22)	442		1984

Changes in interests in mining tenements

6.1 6.2	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	EL 3455 and EL 3324 EL 4621	JV’s terminated JV terminated	51% 90%	0 0
		No new tenements granted	-	-

Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security	Amount paid up per security
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	54,337,495	54,337,495
	2,613,500 -	2,613,500	$0.20	$0.20
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	N/A
			Exercise Price	ExpiryDate
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	1,142,900 30,000 160,000 3,000,000 500,000	- - - -	0.20 cents 0.20 cents 0.45 cents $1.18 $4.36	30.6.2009 30.6.2010 30.6.2010 30.6.2011 6.8.2010
	500,000		$4.36	6.8.2010
	2,613,500	2,613,500
	-	-
7.11 Debentures (totals only)	N/A
7.12 Unsecured notes(totals only)	N/A

Appendix 5B Mining exploration entity quarterly report

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

2 This statement does give a true and fair view of the matters disclosed.

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Sign here: ................Dated: 18.10.2007 (Company secretary)

Print name: S.M. Appleyard

Notes

1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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