NEURIZER LTD — Interim / Quarterly Report 2011

Oct 28, 2010

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29th October 2010

COMPANY ANNOUNCEMENTS OFFICE AUSTRALIAN STOCK EXCHANGE

ASX CODE MTN

QUARTERLY ACTIVITY REPORT 1st July – 30th September 2010

Marathon Resources Limited (ASX: “MTN”) is pleased to present its Activity Report for the Quarter ending 30[th] September 2010. Highlights of the past Quarter include:

• Geological mapping and structural interpretation of Mt Gee-Mt Painter region

• Detailed ground-based spectrometer sampling of uranium anomalies

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Figure 1: Marathon Resources- Map of Tenements

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Geological mapping and structural interpretation

Detailed geological mapping on EL4355 recommenced on 10th July 2010, following the approval of a new Declaration of Environmental Factors (DEF) by the Department of Primary Industries and Resources South Australia (PIRSA).

The mapping and interpretation focused on several steeply dipping shear systems associated with uranium mineralisation. This included re-mapping and re-interpretation of some previous Bons’ mapping areas (Figure 2). These shear systems may represent the elusive “feeder systems” from the underlying granites.

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Bons mapping 2008
Marathon mapping and
EL 4355 spectrometer sampling areas
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Figure 2: Marathon mapping and spectrometer sampling areas

Spectrometer sampling

Marathon commenced detailed ground-based spectrometer samplings (spectrum analysis of insitu rocks) over several anomalous areas. These areas were identified by the radiometrics from the September 2009 survey. The results highlight the strong correlation between the radiometric and geochemical profiles with anomalous areas up to 1% uranium. Spectrometer samplings have also been carried out over known deposits such as Mt Gee and Armchair for mineralisation comparisons. Laboratory assays of specific reading areas were also conducted to validate the spectrometer readings. Strong similarities between the laboratory assays and the spectrometer readings were observed.

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The information in this report that relates to Exploration Results has been compiled by Dr Phung Nguyen B.Sc (Hons, Uni. Adelaide), PhD (Uni.WA), a part-time employee of Marathon and a Member of the AusIMM. Dr Nguyen has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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. Dr Phung Nguyen 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 Managing Director Marathon Resources Limited (08) 8348 3500

John Field Managing Director Field Public Relations (08) 8234 9555 0418 819 527

Notes to Editor

Marathon Resources is a minerals exploration company focused on the development of several prospects in the North Flinders Ranges.

These prospects (including Mt Gee, which is one of Australia's largest undeveloped uranium deposits), are located within the Paralana Mineral System of South Australia, a uranium-rich state that is home to the Olympic Dam deposit.

Marathon 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, 01/06/10.

Name of entity

Name of entity	Name of entity
Marathon Resources Limited
ABN 31 107 531 822	Quarter ended (“current quarter”)
31 107 531 822	30 September 2010

Consolidated statement of cash flows	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 & 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 (R & D Concession) Net Operating Cash Flows	Current quarter $A’000	Year to date (3 months) $A’000
	(188) (548) 61	(188) (548) 61
	(675)	(675)
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 (carriedforward)
	-	-
	(675)	(675)

• 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)	(675)	(675)
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 (provide details if material) 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	(675) 1.826 -	(675) 1.826 -
	1,151	1,151

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
		45
		Nil
1.25	Explanation necessaryforanunderstanding ofthe 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 reporting entity has an interest Nil

Financing facilities available

Add notes as necessary for an understanding of the position.

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

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

4.1 Exploration and evaluation

4.2 Development

4.3 Production

4.4 Administration

Total

$A’000 200 450 650

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)	37	22
	1,114	1,804
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	1,151	1,826

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
		None disposed
		None acquired

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.

• See chapter 19 for defined terms.

Appendix 5B Page 3

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Appendix 5B Mining exploration entity quarterly report

	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
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	77,068,677	77,068,677
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	3,000,000 1,000,000 1,000,000	- - -	Exercise price 1.037 0.80 1.10	Expiry date 30.06.2011 02.09.2012 28.12.2014
	-
	-
	-
7.11 Debentures (totals only)	-
7.12 Unsecured notes(totals only)	-

• 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 / ~~does not~~ * (delete one) give a true and fair view of the matters disclosed.

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Sign here: ...............................................Date: 29 October 2010

• ( ~~Director/~~ Company secretary)

Print name: Stuart 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

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