STELLAR RESOURCES LIMITED — Interim / Quarterly Report 2006

Oct 30, 2006

Quarterly Report For the period ended 30 September 2006

HIGHLIGHTS

Exploration

• Alpine Copper drilling indicates copper mineralisation over a wide area, with significant upside potential.
• Warrior Uranium aircore drilling and geochemical assaying program demonstrates widespread extent of uranium within the Warrior palaeochannel system.
• Copper Blow $RC$ drilling returns a broad intercept of copper-gold mineralisation (IOCGU style) – with anomalous uranium values.
• Arthur Dam drilling confirms presence of anomalous base metals.
• Pernatty gravity survey being planned.

Corporate

• MOU signed with Toro Energy Limited for Toro to earn a 70% interest in the highly prospective Warrior Uranium Project by expending some \$3.4 million over the next four years.
• Joint Venture signed with UraniumSA Limited (USA) over the Company's holding of the Kingoonya Palaeochannel System. Stellar was issued 10.3 million USA shares in its IPO process.
• Agreement signed in October with Red Metal Limited and Phelps Dodge Australasia, Inc for an exploration Earn-In on Robins Rise.
• Stellar held more than \$4.8 million cash as at 30 September 2006.
• In terms of the above Joint Ventures, Stellar is potentially free carried $\bullet$ for over \$10 million of exploration/development expenditure, whilst retaining significant exposure $- (30\% \text{ and } 40\%)$ - to the upside.

Activities Diary for December Quarter 2006

• Alpine, Tasmania 4 hole diamond drill (DD) program.
• Robins Rise, SA IOCGU targets, drilling in November. $\bullet$
• $\bullet$ Ella Zinc, SA – drilling in December quarter.
• Goldfinger, NSW IP survey to guide potential drilling next quarter. $\bullet$
• Devises, Tasmania target nickel/tin drilling November/December. ٠
• Pernatty, SA gravity surveys being advanced.

31 October 2006

ASX Code: SRZ

ABN 96 108 758 961 Suite 713 Exchange Tower 530 Little Collins Street Melbourne Victoria 3000 Australia

Telephone +61 3 9909 7618 Facsimile +61 3 9909 7621

www.stellarresources.com.au srzinfo@stellarresources.com.au

CORPORATE

In July, Stellar announced that it had entered into a Memorandum of Understanding with uranium explorer, Toro Energy Limited. Toro must expend some \$3.4 million in a staged farm-in over the next four years on parts of the highly prospective Warrior Project to earn a 70% interest. Full details of the terms of the JV were released to the ASX on 25 July 2006.

On 1 August 2006, Stellar announced the formation of a JV with UraniumSA Limited (USA), subject to its successful IPO. The JV applies to Stellar's exploration tenure over the Kingoonya Palaeochannel System in the Tarcoola region. USA's mission is to become a long term participant in the Australian and international uranium industry. USA gained ASX listing on 18 October and has commenced exploration. Stellar holds 10.3 million shares in USA.

In early October 2006, Stellar concluded an exploration Earn-In agreement with Red Metal Limited and Phelps Dodge Australasia, Inc. over some 1,700km² of the Robins Rise tenements.

Stellar Resources AGM is scheduled to be held at the corporate office 10:30am on Wednesday 15 November 2006.

EXPLORATION

TASMANIA (Stellar 100%)

Alpine Copper

Drilling continues to encounter a significant copper mineralised zone at the Alpine Copper prospect on the west coast of Tasmania.

Stellar has drilled six holes into the Alpine prospect so far this year. Four drillholes have intersected significant copper mineralisation over substantial widths and, importantly, at relatively shallow depths (see Table 1 below). This widespread copper mineralisation appears to have a close association with magnetite. The drilling supports the geophysical model of the Alpine aeromagnetic anomaly being the host, which indicates a strike length of some 500m for the main magnetite bearing zone and a potential width of up to 150m.

A drill program of four holes has commenced to test and further define the extent and tenor of copper mineralisation. Petrological studies and initial characterisation studies are being scoped.

Drillhole-	$-AMG -$	$\Delta MG =$	From	-To	Interval	Grade Cu
	Easting	Northing	(m)	(m)	$\bf (m)$	(%)
$AP02**$	341200	5376661	44.50	56,20	11.70	0.63
			58.60	66.65	8.05	0.72
			69.65	71.10	1.45	0.44
$AP04*$	341200	5376646	57.70	152,80 (EOH)	95.10	0.46
			(incl) 64.65	86.90	22.25	1.23
AP06*	341333	5376692	42.00	91.00	49.00	0.39
$AP07*$	341273	5376509	62.00	148.00	86.00	0.50
			$(inel)$ 129.00	135.00	6.00	1.05
$AP08*$	341110	5376575	29.80	70.80	41.00	0.48

*Previously reported. ^Drilled by CRAE

Table 1 - Alpine Copper intercepts.

Alpine appears to represent a style of mineral deposit not previously recognised in Tasmania. Geophysically. Alpine is located along a substantial belt of magnetically susceptible rocks, indicating exploration and discovery opportunity over a substantial region within Stellar's tenement.

Two scout holes drilled at Alpine North during the quarter intersected magnetite and anomalous copper. Alpine has returned as the focus for the next round of drilling. The magnetic anomaly at West Alpine remains untested.

Stellar considers that the large dimensions of the Alpine geophysical anomaly and the four well mineralised copper intercepts auger well for the prospectivity of Alpine.

Alpine is well located on the mineral rich west coast of Tasmania, which is host to a divergent group of valuable minerals and mining is the foremost industry with a supportive culture. Alpine is favourably located adjacent to a sealed road, with easy access to the town of Zeehan – and to existing mineral treatment infrastructure.

Alpine Prospect – aeromagnetics showing previous (*) and planned (*) drill holes.

Ramsay

Work concentrated on drilling at the Arthur Dam base metals prospect, located some 10km west of Waratah, a one hour drive south of Burnie. Arthur Dam is favorably located geologically, within 5km of three important historic mines – Mt Bischoff (tin), Cleveland (tin, copper) and Magnet (silver, lead, zinc). It is adjacent to the Corinna bitumen road – and within trucking distance of the Hellyer base metals concentrator (now operating and re-treating the Hellyer tailings).

Arthur Dam is only 4km from the abandoned Magnet mine – with has a recorded production from 1895 to 1940 of 620,000 tonnes @ approx 14% combined lead/zinc, plus high grade silver of 390g/t. Magnet may be a model for Arthur Dam.

A 1,200m program of diamond drilling was completed at the Arthur Dam prospect in western Tasmania where previous surface exploration and diamond drilling by the Tasmanian Department of Mines and Pasminco identified zinc, lead, copper and silver mineralization over a strike length of 800m in the western part of the prospect.

Stellar's drill holes AD005 & AD006 targeted down dip extensions of a previous drill hole (AD002) which intersected a 20m interval of mainly vein-style mineralisation that returned 3.11% zinc, 1.47% lead, 40.6gpt silver and 0.53gpt gold. Mineralisation of similar style was intersected by AD005 at a down dip distance of 50m from AD002. The width of mineralisation intersected is probably similar to the true width and returned the following assay results:

Sec. PWN Hole No From Intercept				Grade
.	The company's TAN AND AND RESERVE m	The common Profession (m)	The property and a . 7 /m	(%) Zinc	(%) _ead	Silver ( $\left( \frac{g}{f} \right)$
AD005	161.85	179.05	.20 وسر	$\sim$ ل قرر	0.48
mcl	174.45	79.05	4.60

Table 2 - Arthur Dam intercepts

In drill hole AD005, the mineralised veins are preferentially developed in a layer of brittle sandstone. Hole AD006 was drilled at an angle of 75 degrees, on the same collar position as AD005, in order to test the zone at depth. It intersected weak mineralisation another 80m down dip at approximately 175m.

Hole AD007 was drilled from the Arthur Dam car park to test the historic copper intersections and to test for a possible strike extension of outcropping ultramafic belt. Weak veining with copper was encountered in the hole from 210m to 300m. Some core has been cut and assays are awaited.

Ground geophysical surveys are under consideration to further the evaluation of this mineralised zone.

The nickel concept at Ramsay remains essentially untested and a summer program is being considered.

Magnetic image with Stellar's Tasmanian tenements

Tin

During the September quarter, the price of tin rose nearly 25% and has risen by nearly 50% since the beginning of 2006. The European Union has now banned the use of lead in soldering materials, a move that has substantially underwritten the role of tin in this application.

The west coast of Tasmania has historically been a very important tin producer and production has only declined due to the long malaise in tin prices since the collapse of the ITC (International Tin Council) in Stellar holds some key tenements highly prospective for tin on the west coast, with some 1985. tenements already having defined targets. These will be drilled when the Board considers that conditions are such that the returns to shareholders from any tin discovery will be rewarded in the market.

LME cash settlement Tin (US\$/tonne)

(source London Metal Exchange)

Tin Targets

At the Devises area, in the SE corner of the Heemskirk licence, a drill hole is planned to test a magnetic anomaly located adiacent to the granite.

At East Granville, magnetic targets along strike of a modest open pit tin mine are being assessed for potential summer drilling, likely after the acquisition of detailed aeromagnetic coverage. Two of these targets have already been permitted. At St Dizier, drill holes have also been permitted.

The Gourlays Creek project area is characterised by a large magnetic signature, supported by prior GeoPeko drilling which intersected anomalous tin. Acquisition of more detailed helimag is being negotiated along with drilling.

NEW SOUTH WALES

Goldfinger (Stellar 51%, option to $60\%$ )

Stellar Resources has now earned a 51% interest in this joint venture and its JV partners have been duly notified

The levels of geochemical anomalism encountered in exploration holes drilled thus far continue to confirm that Goldfinger represents a major mineralised system. An extensive "MIMDAS" induced polarisation IP survey has commenced to systematically evaluate the Goldfinger, Galena Hill and Copper Blow environs for sulphide mineralisation. This IP survey is to be followed by detailed interpretation. Drilling on any identified targets is then anticipated once an appropriate rig can be secured.

The identified FALCON® gravity anomaly has only been partially tested over some 600m of the 3km strike length. In particular, the western extent of the Goldfinger anomaly has not been drill tested.

Copper Blow (Stellar 51%, option to 60%)

The Copper Blow project area is located immediately east of Goldfinger, and is defined by a linear NE trending line of historic copper workings, with a strike length in outcrop of approximately 500m. This zone occurs at the south westerly end of a 4km aeromagnetic trend.

A detailed RC drilling program of 22 holes, for a total 2,168m, was completed during the quarter. This program systematically tested the trend of historic shallow copper workings. Results include a number of narrow moderate grade Cu-Au-U-REE (Rare Earth Element) intercepts from holes near the south-western end of the trend (holes CBRC026, 027, 028 and CBRC038, 039, 040). Significantly, a larger lower grade intercept (52m from 58m downhole at 0.25% Cu, 0.06ppm Au, 927ppm REE and 53ppm U) was returned from hole CBRC036 at the north-eastern end of the drill coverage. This interval included two zones of higher grade, with associated gold, uranium and REE mineralisation, supporting the concept that the Copper Blow mineralisation is of the Iron-Oxide-Copper-Gold-Uranium style.

Only very limited drilling has been undertaken along the Copper Blow aeromagnetic trend to the northeast. Local aeromagnetic highs within this trend do not appear to have been tested for larger IOCGU style mineralisation and further drill testing of magnetic centres is planned.

Drillhole	$F$ From $\sim$	$\sim$ To $\sim$	Interval	$\sim$ Grade Cu $\sim$	Grade Au	Grade REE
	(m)	(m)	(m)	(%)	(ppm)	$(Ce+La+Y-ppm)$
CBRC026	18.00	22.00	4.00	0.82	0.15	N/A
CBRC027	24.00	28.00	4.00	2.69	0.66	N/A
CBRC028	82.00	88.00	6.00	0.78	0.13	261
incl	84.00	86.00	2.00	1.50	0.27	572
CBRC029	0.00	12.00	12.00	0.16	N/A	N/A
CBRC036	58.00	110.00	52.00	0.25	0.06	927
incl	58.00	70.00	12.00	0.49	0.11	1100
and	88.00	110.00	22.00	0.30	0.08	847
CBRC038	24.00	28.00	4.00	0.43	0.23	N/A
CBRC039	12.00	16.00	4.00	0.42	0.12	N/A
CBRC040	82.00	86.00	4.00	0.40	0.13	N/A

Table 3 – Copper Blow intercepts

Copper Blow - RC drill locations on aeromagnetic image

Panama Hat (Stellar 100%)

Panama EL6556 is located immediately to the east of the Goldfinger and Copper Blow prospect areas. A gravity survey completed in mid year has defined a number of significant positive gravity features including a major anomaly (4 mGals) immediately west of the historic Panama gold workings. Although it is considered likely that these anomalies are hosted within Broken Hill metasediments, regional geology of the Panama licence area is poorly understood. Field mapping and soil sampling programs of these gravity target areas are planned to start during the December quarter.

Goldfinger – Copper Blow/Panama summary, gravity contours on aeromagnetic image

SOUTH AUSTRALIA

Robins Rise (Stellar 100%)

In early October 2006, Stellar concluded an exploration Earn-In Agreement with Australian explorer Red Metal Limited and Phelps Dodge Australasia, Inc., together known as "the Alliance".

The agreement with the Alliance covers some 1,700km² of ELs 3336 and 3436.

Magnetic image showing location of gravity targets at Robins Rise

The major terms of the agreement are as follows:

• The Alliance is committed to spending \$500,000 on exploration within the project area before December 2007:
• Thereafter, the Alliance may spend \$8 million within 6 years to earn a 60% interest in the tenement areas:
• Stellar may retain a 40% interest or elect to convert to a 20% free carried interest, up to a decision to develop a mine:
• Red Metal will be the initial operator of the JV.

Stellar considers that technical input from the highly experienced exploration professionals from within the Alliance will ensure the effective exploration of these tenements. The increased expenditure rate will expedite the chances of making significant discoveries within this very large project area.

In order to accelerate the identification of other prospective areas, the Alliance has agreed to spend \$100,000 on completing further gravity surveys by Christmas 2006, with an intention of defining additional target areas for drill testing in 2007.

Drilling of five structure-controlled gravity anomalies has now commenced. This drilling is targeting dense, haematite breccias of the Olympic Dam style (Iron-Oxide-Copper-Gold-Uranium) in conjunction with a regionally extensive gravity survey.

Coober Pedy Ridge

Two additional Exploration License Applications (ELAs) totalling some 1,500km² located in the Coober Pedy Ridge magnetic province immediately north of the Robins Rise IOCGU project area are now proceeding to grant.

Robins Rise / Coober Pedy Ridge magnetics

Pernatty (Stellar 100%)

The Pernatty EL3583 is located to the west and south of the historic Mt Gunson copper mining area. The Carapateena IOCG prospect held by RMG Services Pty Ltd/Teck Cominco Limited and the recent discovery by Monax Resources Ltd at the Groundhog prospect occurs some 30km to 40km to the east.

Compilation of existing gravity data within Stellar's EL3583 has delineated a number of local gravity anomalies of similar dimensions to the target anomalies at both Carrapateena and Groundhog.

Detailed gravity surveys to confirm these anomalies and to cover remaining portions of the licence areas where existing gravity coverage is of poor quality are scheduled for the December quarter. This work is anticipated to generate targets for subsequent drilling.

Pernatty EL3583 – Summary of residual gravity contours and existing drillholes

Tarcoola Basin Zinc (Stellar 100%)

The "PACE" subsidised drilling program to test for Proterozoic sediment hosted base metal mineralisation in the vicinity of the Ella zinc prospect is scheduled for the December quarter. Two diamond cored holes to approximately 300m depth are planned to test a local magnetic and gravity target anomaly along structure from the low-level zinc mineralisation intersected in earlier RC drill holes at Ella. This drilling is planned to follow completion of the Robins Rise program, using the same drill rig.

URANIUM

Warrior Uranium (Stellar 100%, Toro able to earn 70%)

A drilling program, at nominal 200m spacing between drillholes, on five regional traverses to test approximately 9km strike extent of the interpreted main Warrior palaeochannel was completed in July. Results of this program were released to the ASX on 14 July 2006.

This aircore drilling and geochemical assaying program confirmed the widespread extent of uranium within the Warrior palaeochannel system.

In order to maximise the rate at which the Warrior deposit is evaluated and further explored, Stellar has entered into a joint venture agreement with uranium explorer, Toro Energy Limited. Under this deal, Stellar will retain a significant 30% equity stake in any exploration success on its tenements whilst it provides Toro with access to a contiguous "whole of Warrior uranium project" exploration corridor.

As advised by Toro:

"A detailed Tempest airborne EM survey on 400m line spacing was flown over the southern extent of the Warrior channel. Results have been very good, showing the outline of the channel through EL3040 and potential extensions into EL3369W. As has been shown by previous targeted geophysical work at the Yaninee and Warrior projects, the resulting interpretation of this data enables very accurate targeting of drilling along and across channel features for potential uranium mineralisation, ensuring best value from our exploration dollars.

Toro Energy is now undertaking work for a larger exploration and drilling program over the Warrior Palaeochannel, including land access agreements. PIRSA approval for this drilling program has been received and a drill rig is available. Negotiation of a Work Area Clearance Agreement is underway, and initial heritage clearance survey work is planned for mid November. Drilling should commence soon after this, once the rig is available from the Yaninee Project drilling program."

Toro can spend more than \$3 million in a staged farm-in over the next four years on parts of the highly prospective Warrior Project.

Tarcoola Region, Iron Ore (Stellar 100%)

An independent consultant has been engaged to review the commercial possibilities for the Coolybring/Wilgena Hill magnetite occurrences. Subject to the recommendations of this report, Stellar will review the merits of any further exploration, either in its own right or in conjunction with a farm-in partner.

Tarcoola Region, Gold (Stellar 100%)

A number of groups have expressed interest in evaluating the small-scale gold development potential and/or the regional gold exploration potential at Tarcoola. Stellar has conducted an internal review of its gold assets, including the Perseverance deposit and the Soyuz prospect, and is considering its options for renewed activity for gold discovery and development.

Uno (Stellar option to acquire $100\%$ )

RAB assay results for gold were generally only weakly anomalous, although significant widths of strongly anomalous base metal levels were returned. Following a consulting geologist's report, limited further work is recommended.

Data from a PIRSA funded gravity survey, which included coverage of the licence area at 2km centres, was acquired, and this will aid evaluation of the area for massive sulphide accumulation.

VICTORIA

North Bendigo JV (Stellar 50%)

An aircore drilling program on shallower southern ground of 27 holes for some 2,500m was completed in May. Some 300 basement samples were submitted for assay and weakly anomalous gold was detected in weathered basement rocks in a number of drillholes. A selection of samples has been submitted to the laboratory follow-up bottle roll analysis prior to targeting further aircore drilling.

OUTLOOK

Stellar Resources continues to actively explore its portfolio of commodity targets.

In the December 2006 quarter, exploration activity is scheduled for the following areas:

• Alpine, Tasmania more drilling on the magnetic anomaly.
• Devises area, Tasmania on tin/nickel target December quarter.
• Robins Rise IOCGU targets, drill in the December quarter.
• Ella Zinc diamond drill test in December.
• Goldfinger IP survey then potential drilling in the March 2007 quarter.
• Warrior Uranium aircore drilling in the December quarter (subject to availability).

The drill and exploration results reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr. C.G. Anderson (Fellow of the Australasian Institute of Mining and Metallurgy) who is a Director of the Company with more than twenty years experience in the field of activity being reported. Mr. Anderson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. It should be noted that the abovementioned exploration results are preliminary.

For further details please contact:

Tom Burrowes	Tel:	$(03)$ 9909 7618		Email: tom.burrowes@stellarresources.com.au
Chris Anderson	Tel:	(08) 8363 1589		Email: chris.anderson@stellarresources.com.au
Bill Michaelidis	Tel:-	$(03)$ 9909 7618		Email: bill.michaelidis@stellarresources.com.au
David Sasson	Mob:	0411 468 966		Email: david.sasson@stellarresources.com.au
or visit our Website at: http://www.stellarresources.com.au

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

STELLAR RESOURCES LIMITED

ABN

96 108 758 961

Quarter ended ("current quarter")

Current quarter

30 SEPTEMBER 2006

Year to date

Consolidated statement of cash flows

	Cash flows related to operating activities	ะแกนกลางของ \$A'000	(3 months) \$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration and evaluation	(684)	(684)
	(b) development
	(c) production
	(d) administration	(146)	(146)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	83	83
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other $-$
	Net Operating Cash Flows	(747)	(747)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a) prospects
	(b) equity investments
	(c) other fixed assets	(6)	(6)
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:
		(1)	(1)
	Net investing cash flows	(7)	(7)
1.13	Total operating flows and investing cash (carried forward)	(754)	(754)

$+$ See chapter 19 for defined terms.

1.13	operating investing flows Total and cash (brought forward)	(754)	(754)
	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 – cost of issue
	Net financing cash flows
	Net increase (decrease) in cash held	(754)	(754)
1.20	Cash at beginning of quarter/year to date	5,613	5,613
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	4,859	4,859

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
• Explanation necessary for an understanding of the transactions 1.25

Remuneration and directors fees for the quarter

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

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

Current quarter \$A'000

$104$

$\overline{\phantom{0}}$

⁺ See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities
3.2	Credit standby arrangements

Estimated cash outflows for next quarter

	Total	500
4.2	Development
4.1	Exploration and evaluation	500
		\$A'000

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	89	243
52	Deposits at call	4,770	5,370
5.3	Bank overdraft
5.4	Other
	Total: cash at end of quarter (item 1.22)	4,859	5,613

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed	See Attachment А
6.2	Interests in mining tenements acquired or increased	See Attachment В

⁺ See chapter 19 for defined terms.

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)	Amount paid up per security (see note 3)
				(cents)	(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	58,338,168	56,900,944
7.4	Changes during quarter
	(a) Increases through issues
	(b) Decreases through returns of capital, buy-backs
7.5	+Convertible debt
	securities (description)
7.6	Changes during quarter
	(a) Increases through issues
	(b) Decreases through securities matured, converted
7.7	Options			Exercise Price	Expiry date
	Directors	3,500,000	Nil	30 cents	10 December 2008
	Executives	625,000	Nil	30 cents	19 August 2009
7.8	Issued during quarter
7.9	Exercised during quarter
7.10	Expired during quarter
7.11	Debentures
	(totals only)
7.12	Unsecured notes (totals only)

060060SRL.doc

⁺ See chapter 19 for defined terms.

Compliance statement

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

	This statement does give a true and fair view of the matters disclosed.
Sign here:	Date: 31 October 2006
	(Company Secretary)

Print name: Bill Michaelidis

Notes

• $\mathbf{I}$ 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.
• $\overline{2}$ 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.
• $\overline{3}$ 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.
• $\mathfrak{s}$ 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.

$\overline{\dots} \overline{\dots} \overline{\dots} \overline{\dots} \overline{\dots} \overline{\dots} \overline{\dots} \overline{\dots} \overline{\dots} \overline{\dots}$

⁺ See chapter 19 for defined terms.

Attachment A

		Tenement	Nature of interest	Interest at	Interest at end of quarter
		reference	(note (2))	beginning of
				quarter
6.1	Interests in mining tenements relinquished,	EL3372	Joint Venture interest	100%	Note 1
	reduced or lapsed	EL3369W	Joint Venture interest	100%	Note 1
		EL2898	Uranium or mainly uranium interest only	100%	Note 2
		EL3089	Uranium or mainly uranium interest only	100%	Note 2
		EL3205	Uranium or mainly uranium interest only	100%	Note 2
		EL3253	Uranium or mainly uranium interest only	100%	Note 2
		EL3500	Uranium or mainly uranium interest only	100%	Note 2
		EL3369 (eastern part)	Uranium or mainly uranium interest only	100%	Note 2

Note 1 Toro Energy Limited has the ability to earn 51% and then 70% interest in these tenements

Note 2 UraniumSA Limited has the ability to earn a 70% interest in these tenements.

⁺ See chapter 19 for defined terms.

Attachment B

Interests in mining
tenements acquired or $6.2\,$ increased

ELA21/2006	Lefroy Ridge - Tasmania	ΝiΙ	Application for 100%
ELA298/06	Cleanskin Swamp - SA	Nil	Application for 100%
ELA299/06	Long Creek - SA	Nil	Application for 100%
EL4632	Triako/Anglo Joint Venture	Nil	51% increasing to 60%

$+$ See chapter 19 for defined terms.