NEURIZER LTD — Interim / Quarterly Report 2007

Jul 24, 2007

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25 July 2007

By E-mail: ASX On-line

Manager Companies Company Announcements Office Australian Stock Exchange Limited

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.

Yours faithfully

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Sam Appleyard Company Secretary

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Wednesday, 25 July 2007

COMPANY ANNOUNCEMENTS OFFICE AUSTRALIAN STOCK EXCHANGE

ASX CODE MTN

QUARTERLY ACTIVITY REPORT 1 APRIL 2007 –30 JUNE 2007

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

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

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

•  Analysis of the drilling program which was completed in the second quarter of 2007 with a view to revising the resource estimate;

•  Review of the Interim Scoping Study;

•  Commissioning of preliminary metallurgical test work; and

•  Development of a forward work plan.

Revised Resource Estimate

Progressive assay results were released on 9 May and 6 June. Results appear to confirm the size and grade of the Mt Gee deposit in the Paralana Mineral System, part of 100% owned EL 3258 in the Northern Flinders Ranges of South Australia (Figure 2).

A revised resource statement will be released shortly, once signed off by the independent resource estimation consultants.

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Figure 2: EL 3528, The Paralana Mineral System

Interim Scoping Study

As announced on 3 March, an interim scoping report on the possibility of mining the Mt Gee deposit and processing product has been received from Coffey International Ltd subsidiary Coffey Mining Pty Ltd. As noted, the report is not a full scoping study as the information on which the study was based was itself preliminary and the Mt Gee resource on which the study was based was an inferred resource. Metallurgical testing needs to be completed and further geotechnical data accumulated before preliminary processing and mining conclusions can be reached.

Notwithstanding these limitations, the interim study points to underground mining as the “best”solution from both an economic and environmental standpoint, with ore transported via a ‘gun-barrel decline’to a processing plant outside the area of environmental and social significance at Mt Gee.

Based on the August 2006 Inferred Resource of 45.6 million tonnes averaging 685 ppm U3O8 (at a cut off of 300 ppm U3O8), Coffey have assessed:

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

•  Production of about 1,000 tonnes per annum of U3O8

•  A mine life of 13 years using conventional atmospheric tank leaching or slightly less possibly using heap leaching.

It should be noted, that for conservatism, a very low resource to mining inventory conversion factor of less than 50% was assumed due to uncertainty about the continuity of the resource. The recently completed drilling programme should improve our understanding of the resource continuity and lead to an improved conversion factor.

Preliminary Metallurgical Test Work

During the quarter representative samples from Mt Gee were sent to the Australian Nuclear Science and Technology Organisation at Lucas Heights for preliminary mineralogical and leaching test work. Results are expected to be received during the next quarter and will guide subsequent test work.

Development plan for Mt Gee

Following on from the Interim Scoping Study, Marathon has committed to a six month programme of data acquisition to prepare for the commencement of a pre-feasibility study early in 2008 (refer Figure 3).

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Figure 3 Forward programs at Mt Gee.

Apart from Mt Gee, the following work was completed at other tenements:

Glendambo (IOCG Cu-Au-U)

ASX listed UraniumSA Ltd is carrying out 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 (Figure 4).

The company has completed detailed follow-up calcrete sampling of areas of interest defined by the regional calcrete sampling completed in 2006 on both the Mulga Well and Coondambo (EL 3593) tenements.

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

Coober Pedy (IOCG Cu-Au-U)

Marathon has lodged formal notice of withdrawal from the joint venture agreement covering the Mabel Creek Joint Venture Project, effective from the 16[th] of August.

Mongolata (Au, Au-Cu)

Drilling commenced on the company’s wholly owned Mongolata Project, located 30km east of Burra, on the 24 March 2007 being completed on 20[th] April. The drilling program is jointly funded by Marathon and PIRSA under the PACE initiative.

A total of six holes were completed to depths of between 240m and 400m for a total of 2002m to test coincident geochemical and geophysical anomalies under thin Murray Basin sediment cover for intrusion related gold-copper mineralization derived from the White Dam layered granitoid. The drilling intersects weakly metamorphosed Adelaidean sediments with traces of very minor copper mineralization.

Options for future exploration on the tenement are being reviewed.

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

A planned drilling program has been deferred to concentrate on the Mt Gee project. Drilling was to target coincident magnetic and geochemical anomalies data as well as the results of recent stream sediment sampling and follow-up soil sampling.

Western Victoria

At Kalymna, located 30km southwest of Ararat, 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”(Figure 5).

The anomalous results in broad spaced reconnaissance lines approximately 1.5km south of the RC drilling suggests an additional area of significant potential.

The company is planning a program of air core drilling to assess the southern zone and is planning several diamond drill holes to investigate the major mineralised area identified to date.

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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 tenement. The tenements, covering of some 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 as well as for nickel and other commodities.

Heritage clearance surveys for geochemical sampling and gravity survey programs have been completed and approved by the traditional owners.

The regional geochemical sampling program has already commenced and the gravity survey is scheduled for mid-August.

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

Blanchetown ELA

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

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 Inferred Resource of 45.6 million tonnes of uranium mineralisation averaging 0.068% U3O8, or 69 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 JUNE 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)/Repay Net Operating Cash Flows	Current quarter $A’000	Year to date (12.months) $A’000
	(2014) (615) 47 (62) 90	(6489) (2057) 179 (770) (0)
	(2554)	(9137)
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)	NIL (460) (115)	NIL (460) (146) 1
	(575)	(605)
	(3129)	(9742)

• See chapter 19 for defined terms.

Appendix 5B Page 1

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(3129)	(9742)
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	335	7526
	335	7526
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	(2794) 4778	(2216) 4200
	1984	1984

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 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
	121
	NIL

• 1.25 Explanation necessary for an understanding of the transactions

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

NONE

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

NONE

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
	NIL	NIL

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter

timated cash outflows for next quarter
Exploration and evaluation Development	$A’000
	1400
	NIL
Total	1400

4.1 Exploration and evaluation

• 4.2 Development

Reconciliation of cash

Reco show the re	nciliation of cash at the end of the quarter (as n in the consolidated statement of cash flows) to lated items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 5.2 5.3 5.4	Cash on hand and at bank Deposits at call Bank overdraft Other (provide details)	328	238
		1656	4540
	Total: cash at end of quarter(item 1.22)	1984	4778

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.

5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) Total: cash at end of quarter (item 1.22)

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
		No Tenement disposals or reductions
	WA E69/1564 E69/2211	JV INTEREST IN WARBURTON TENEMENTS	0	0

• See chapter 19 for defined terms.

Appendix 5B Page 3

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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 (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions	N/A
	N/A
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	51,723,995	51,723,995
	1,605,000 68,600 NIL	1,605,000 68,600	Omitted last QTR .20	.20 .20
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	N/A
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	3,756,400 30,000 160,000 3,000,000	NIL NIL NIL NIL	Exercise price 20¢ 20¢ 45¢ 118¢	Expiry date 30.6.2009 30.6.2010 30.6.2010 30.6.2011
	68,600
	NIL	NIL
7.11 Debentures (totals only)	N/A	N/A
7.12 Unsecured notes(totals only)	N/A

• See chapter 19 for defined terms.

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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.

Date: 25 July 2007

Sign here:

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(Company secretary)

Print name: Sam 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.

• See chapter 19 for defined terms.

Appendix 5B Page 5

30/9/2001