NEURIZER LTD — Interim / Quarterly Report 2011

Jan 30, 2011

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31st January 2011

COMPANY ANNOUNCEMENTS OFFICE AUSTRALIAN SECURITIES EXCHANGE

ASX CODE MTN

QUARTERLY ACTIVITY REPORT 1st October –31st December 2010

Marathon Resources Limited (ASX: “MTN”) is pleased to present its Activity Report for the Quarter ending 31[st] December 2010. Highlights of the past Quarter include:

• Further investigation on REE potential for the Mt Gee region

• Preparation of a DEF for drilling proposal

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Figure 1: Marathon Resources- Map of Tenements

EL 4355 Mt Gee

South Australia

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Licence Renewal

On 17th December 2010, Bonanza Gold Pty Ltd (a wholly owned subsidiary of Marathon Resources Limited) received a proposed renewal of EL 4355 from the South Australian government. Marathon Resources is consulting with the government on the terms and operating conditions of the renewed licence.

Investigation on Rare Earth Potential of the Mt Gee ore zones

All Marathon drill holes (75 RC and 45 diamond holes) were routinely assayed for REE elements (Lanthanum, Cerium and Yttrium). Several CRA drill holes were also assayed for Lanthanum, Cerium and occasionally Praseodymium.

Preliminary study in the Mt Gee ore zones shows a close relationship between REE and Uranium mineralisation. Within the ore blocks, the Lanthanum values are up to 5800ppm, Cerium values up to 9100ppm and Yttrium values up to 600ppm.

Further study is in progress to follow up previous Exoil work (1970) which reports zones of REE-bearing monazites.

Preparation of a DEF for drilling proposal

A DEF proposal is in progress. Marathon is proposing a drilling exploration program to:

• Demonstrate the NE, E and SE extensions of the Mt Gee deposit;

• Demonstrate the continuity of the Armchair and Hodgkinson deposits;

• Test recently discovered high grade shear zones.

MEDIA CONTACT:

Dr J.G. (Shad) Linley Managing Director Marathon Resources Limited (08) 8348 3500

John Field Field Public Relations (08) 8234 9555 (0412) 591 520

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.

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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, 17/12/10.

Name of entity

	Marathon Resources Limited	Marathon Resources Limited	Marathon Resources Limited	Marathon Resources Limited
	ABN 31 107 531 822 Consolidated statement of cash flows
			31 December 2010
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) (1)exploration & evaluation (2)camp infrastructure (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 (6months) $A 000
		(123) (189) (472) 6 221		(311) (189) (1,020) 67 221
		(557)		(1,232)
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)
		-		-
		(557)		(1,232)

• See chapter 19 for defined terms.

17/12/2012 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(557)	(1,232)
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
	(557)	(1,232)
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	(557) 1,151 -	1,232) 1.826 -
	594	594

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.

17/12/2010 Appendix 5B Page 2

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 4.2 4.3 4.4	Exploration and evaluation Development Production Administration	$A 000
		100
		400
	Total	500

4.1 Exploration and evaluation

• 4.2 Development

• 4.3 Production

• 4.4 Administration

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	37
	541	1,114
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	594	1,151

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 3211 Mulga Well	Tenement lapsed on Anniversary Hard Rock Right Paleo J/V	100% 30%	0 0
		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.

17/12/2012 Appendix 5B Page 3

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 1,000,000 590,000 50,000 500,000 750,000 750,000	- - - - - - - -	Exercise price 1.037 0.80 1.10 0.34 0.75 0.876 1.28 1.75	Expiry date 30.06.2011 02.09.2012 28.12.2014 15.10.2013 15.10.2013 01.11.2013 01.11.2014 01.11.2015
	2,640,000	-	0.34 -1.75 AsAbove	As above
	-
	-
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 5).

• 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: 31 January 2011 ~~(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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: 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.

17/12/2012 Appendix 5B Page 5