NEURIZER LTD — Interim / Quarterly Report 2009

Oct 28, 2009

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29 October 2009

COMPANY ANNOUNCEMENTS OFFICE AUSTRALIAN STOCK EXCHANGE

ASX CODE MTN

QUARTERLY ACTIVITY REPORT 1 July 2009 –30 September 2009

Marathon Resources Limited (ASX: “MTN”)is pleased to present its Activity Report for the Quarter ending 30 September 2009. Highlights of the past Quarter include:

• Completion of helicopter magnetic and radiometric survey over the Mt Gee tenement

• Completion of ground gravity in-fill survey within the Mt Gee tenement

• Completion of stream sediment in-fill and check sampling within the Mt Gee tenement

• Applied for replacement of EL 3258 Mt Gee

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Figure 1: Marathon Resources - Map of Tenements

EL 3258 Mt Gee South Australia

Declaration of Environmental Factors

Marathon completed “Declaration of Environmental Factors”(DEF) reports prior to continuing lowimpact, non-invasive exploration within the Mt Gee tenement.

DEFs were submitted for an extension of an airborne geophysical survey, for ground gravity surveying using a hand held gravity meter, for conventional stream sediment surveying collecting 300 gms of material, and for geological mapping on foot.

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Helicopter Magnetic and Radiometric Survey

Until recently, magnetic/radiometric data coverage over EL 3258 Mt Gee consisted of a stitch of two airborne surveys completed by CRA Exploration in the early 1990s. Marathon employed Daishsat Surveys to re-survey the north-eastern portion of the tenement in the previous Quarter. Daishsat use a Robinson R44 helicopter with a stinger mounted caesium vapour magnetometer and a 16L radiometric crystal pack (1024 channels). The light weight piston engine helicopter enables the safe collection of high quality data over rugged terrain.

The re-surveyed data displays a significant improvement compared to the previously existing data over the north-eastern portion of the Mt Gee tenement and so the remainder of the tenement was reflown by Daishsat . The location of the two surveys is shown in Figure 2.

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Figure 2 : EL 3258. Magnetic and Radiometric data collection location diagram with northeastern survey shown in magenta.

Both surveys were flown in a North-South orientation with 25m flight line spacing. The tie lines were flown with 250m line spacing in an East-West direction. For both surveys a total of 4443 line kilometres (including tie lines) of magnetic and radiometric data were collected. The tenement was covered by two surveys (Figure 2):

 The first survey flown in mid June, 2009 covered the north-eastern portion of the tenement. It was flown as a test of the system and also to infill missing data in the historic data coverage. This survey consisted of 176 survey lines and 24 tie lines for a total of 827 line kilometres. The mean flight elevation was 47 metres.

 The second survey was flown to complete detailed coverage of the tenement. This survey consisted of 532 survey lines and 32 tie lines for a total of 3616 line kilometres. The mean flight elevation was 51 metres.

Data processing and interpretation is in progress.

Figures 3 and 4 demonstrate the improvement in the quality of magnetic and radiometric data available as a result of the helicopter borne survey by comparing public domain data from Geoscience Australia and PIRSA , CRA Exploration data, and Marathon’s newly acquired Daishsat data.

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Figure 3 : Magnetic data (Reduced to Pole –RTP) showing the improvement in quality between PIRSA (top), CRAE (middle) and Marathon ( Daishsat ) (bottom) surveys.

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Figure 4 : Uranium Channel data showing the improvement in quality between Geoscience Australia (top), CRAE (middle) and Marathon ( Daishsat ) (bottom) surveys.

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Helicopter Supported Ground Gravity In-Fill

Marathon has completed several ground gravity surveys over the Mt Gee tenement ranging from regional, one kilometre spaced stations to ultra-detailed over known mineralisation with station spacing of 5 metres. Processing and interpretation identified several areas that required in-fill to refine our interpretation.

A total of 125 ground gravity stations were read during the Quarter, using a helicopter to place the gravity crew in the vicinity of each gravity station. The crew walked to each gravity station and did not leave any station identifier after taking the gravity reading.

Figure 5 shows a preliminary merged image of Marathon’s gravity data compared with the broader scale public domain data. Comprehensive processing and interpretation of the gravity data has commenced.

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Figure 5 : Comparison of processed gravity data from PIRSA state gravity grid (top) and Marathon detailed gravity data (bottom).

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Helicopter Supported Stream Sediment In-Fill Survey

Interpretation of assay results from previously collected stream sediment samples identified several anomalies worthy of further work. A sampling programme was designed to repeat anomalous samples and in-fill with closer spaced samples. Access to the sample sites was either by helicopter or on foot. Samples were also taken in the western half of the tenement where access is limited. A total of 85 samples were collected. Assay results were received during the Quarter, and interpretation has commenced.

Figure 6 shows the distribution of stream sediment sample collected during the Quarter.

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Figure 6 : Stream sediment sample locations, EL 3258

Tenement Replacement

Exploration Licence 3258 expired on 10[th] October 2009 at the end of the statutory five year period. During the Quarter Marathon submitted the required application to PIRSA for a Replacement Licence over the same area as EL 3258. Marathon received written notice from PIRSA 9 October 2009 offering the grant of a replacement licence to its wholly owned subsidiary Bonanza Gold Pty Ltd, which Marathon accepted. Advice of the offer and acceptance was advised to the market through ASX releases respectively of the 13[th] and 21[st] of October 2009.

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Warburton Joint Venture - Western Australia

Marathon advised on 16th September that it has withdrawn from the Warburton Joint Venture covering tenements E69/1564 and E69/2177-2181, effective 31[st] August 2009. Marathon has transferred its interest in the JV tenements to its joint venture partner Strzelecki Metals Ltd (ASX: STZ) for no consideration, thus ending the Warburton Joint Venture.

The information in this report that relates to Exploration Results has been compiled by Mr Brenton Newell, a part-time employee of Marathon Resources Ltd and a Member of the Australian Institute of Geoscientists. He 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 Brenton Newell consents to inclusion in the report of these matters based on their information in the form and context in which it appears.

MEDIA CONTACT:

Dr J.G. (Shad) Linley John Field Managing Director Field Public Relations Marathon Resources Limited (08) 8234 9555 (08) 8348 3500 (0412) 591 520

Notes to Editor

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

The Company’s North Flinders Ranges 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.

Marathon listed on the Australian Securities Exchange on 15 March 2005, under the stock code of MTN. Website: 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

MARATHON RESOURCES LIMITED

	ABN 31 107 531 822 Consolidated statement of cash flows		Quarter ended (“current quarter”) 30th SEPTEMBER 2009	Quarter ended (“current quarter”) 30th SEPTEMBER 2009
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 –R & d concession 1.7 Other –Capital raising costs Net Operating Cash Flows		Current quarter $A’000		Year to date (3.months) $A’000
		(774) (880) 29 303		(774) (880) 29 303
		(1,322)		(1,322)
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)		(19)		(19)
		(19)		(19)
		(1,341)		(1,341)

• 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)	1.13 Total operating and investing cash flows (brought forward)	1.13 Total operating and investing cash flows (brought forward)	(1,341)	(1,341)
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
			-	-
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 of quarter			(1,341) 3,832 -	(1,341) 3,832 -
			2,491	2,491
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 1.2d Aggregate amount of loans to the parties included in item 1.10		Current quarter $A'000 74 NIL
1.25 Explanation necessaryfor an understandingof 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 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
	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	-

Estimated cash outflows for next quarter

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

4.1 Exploration and evaluation 4.2 Development

Total

$A’000 250 - 250

Reconciliation of cash

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)	53	53
	2,438	3,828
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	2,491	3,832

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
	EL 3593 Coondambo	50% area reduction on renewal anniversary 04.07.09	100%	100%
	EL4052 Blanchetown	30% area reduction on renewal to 24.02.10	100%	100%
	Strzelecki Metal Ltd Warburton JV	JV terminated 31.08.09	50%	0%
		None acquired

• See chapter 19 for defined terms.

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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	77,008,677	77,008,677
	NIL	NIL
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	- 30,000 30,000 3,000,000 1,000,000	- - - - -	- 5.67 cents 30.67 cents 103.70 cents 80.00 cents	30.06.2010 30.06.2010 30.06.2011 02.09.2012
	1,000,000	-	80.00 cents	02.09.2012
	NIL	-
	NIL	-
7.11 Debentures (totals only)	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.

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Sign here: ............................................................ Date 29 October 2009. (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.

• See chapter 19 for defined terms.

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