SUPERIOR RESOURCES LIMITED — Interim / Quarterly Report 2011

Apr 20, 2011

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Superior Resources Limited

ABN 72 112 844 407

Registered Office: Level 2, 87 Wickham Terrace, Spring Hill, QUEENSLAND, 4000. Postal Address: PO Box 10288, Brisbane Adelaide Street, QUEENSLAND, 4000. Telephone: 07 3839 5099 Facsimile: 07 3832 5300 Email: manager@superiorresources.com.au

QUARTERLY ACTIVITIES REPORT 31 MARCH 2011

HIGHLIGHTS

• Geological mapping indicates a potential strike length of many kilometers of phosphate horizon at the Wills Phosphate Prospect

• Anomalous yttrium values accompany the phosphate at the Wills Phosphate Prospect

• Queensland Government CDI grants of $150,000 for the Kingfisher Copper Prospect and $45,000 for the Nicholson West Prospect granted

EXPLORATION OVERVIEW

As the particularly long and intense north Queensland wet season comes to an end and the 2011 field season begins, it is a good opportunity to update shareholders on where Superior is currently positioned.

In summary, Superior remains in a favourable position with a high-quality tenement package and funding in place for at least another year. Unlike a number of other juniors, Superior has not been forced to go back to the market to raise additional funds to continue exploration and consequently shareholder equity has not been diluted since floating in November 2007.

Most of Superior’s activity to date has been directed at the discovery of large Mount Isa style deposits rather than the smaller deposits that are more common in northwest Queensland. Exploration for larger deposits requires a somewhat different approach than exploration for smaller deposits. It tends to generate less ‘news’ and requires more patience. However, providing it is successful, the patience should be worthwhile in the longer term. The longer odds of discovering larger deposits should be offset by the improved chances of successful development and the greater value of these deposits.

While it is expected that larger deposits will remain the principal focus of Superior’s activities some activity is being directed to more moderate sized targets. These include the Cockie Project (One Mile mining lease) which has potential for volcanogenic massive sulphide deposits, the Wills Phosphate Prospect and gold possibilities in the western side of the Dajarra Project.

Figure 1 shows Superior’s current tenement situation in northwest Queensland. The current

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Superior Resources Limited

tenement holding reflects a number of changes that have been partially foreshadowed in previous ASX releases. The number of un-granted tenements reflects the number of new applications and the increasing time it takes to grant tenements in Queensland. This latter issue is of concern as an efficient tenement pipeline is a fundamental necessity for a successful exploration industry.

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138° E Walford Creek (Pb,Zn,Ag) 140° E
18° S
Nicholson Project Bluebush (Pb,Zn,Ag)
Century (Pb,Zn,Ag)
Highland Plains (Ph) 0 1000km
Grevillea (Pb,Zn,Ag)
Victor Project Cockie Project
NE Qld
Lady Jayne (Ph)
D-Tree (Ph)
Lady Loretta (Pb,Zn,Ag)
Camooweal Lady Annie (Ph)
20° S
20° S
Inca Project Dugald River (Pb,Zn,Ag)
Sherrin Creek (Ph)
Ernest Henry (Cu)
Hilton (Pb,Zn,Ag)
NORTHERN Mount Isa (Pb,Zn,Ag) Rocklands (Cu) Cloncurry
Mount Isa (Cu) Mount Isa
TERRITORY
QUEENSLAND
Dajarra
Ardmore (Ph)
Phosphate Hill (Ph) Cannington (Pb,Zn,Ag)
Steamboat (Ph)
Pegmont (Pb,Zn,Ag) 22° S
22° S0 50 100km
Osborne (Cu)
LEGEND Dajarra Project
Exploration Permit - granted
Exploration Permit - application
Large base metal mine or deposit
Boulia
Large phosphate mine or deposit
140° E
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Figure 1. Superior Resources Limited northwest Queensland project locations.

Further details of the tenements in each project are summarised below.

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Superior Resources Limited

EXPLORATION ACTIVITIES

Dajarra Project

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140° E Ernest Henry (Cu)
Hilton (Pb,Zn,Ag)
NORTHERN Mount Isa (Pb,Zn,Ag) Rocklands (Cu) Cloncurry
Mount Isa (Cu) Mount Isa
TERRITORY
QUEENSLAND
Elizabeth Prospect
Wills Phosphate
Quita Prospect
Dajarra
Ardmore (Ph)
RFZ Prospect Pegmont (Pb,Zn,Ag)
Cannington (Pb,Zn,Ag)
Steamboat (Ph)
Phosphate Hill (Ph)
22° S
22° S
Osborne (Cu)
0 50 100km
Dajarra Project
LEGEND
Exploration Permit - granted
Exploration Permit - application
Base metal mine or deposit Boulia
Phosphate mine or deposit 0 1000km
140° E
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Figure 2. Dajarra Project and principal prospect locations.

The Dajarra Project is situated 150km south of Mount Isa (Figure 2). The main targets in the Dajarra Project are copper or lead-zinc-silver deposits of the Mount Isa type. The area also has potential for phosphate and gold. The principal prospects are indicated in Figure 2.

The current tenement holdings in the Dajarra Project include three granted exploration permits (EPM15040, EPM15046 and EPM15329) and three exploration permit applications (EPM16995, EPM17012 and EPM18542).

The Elizabeth and RFZ prospects both contain areas of Mount Isa Group rocks with potential for Mount Isa style deposits. Considerable exploration has been completed on these prospects and, although some encouragement has come from this work, no economic intersections have resulted to date from drilling of the prospects. Superior’s plan for the current year does not include a budget for these prospects because of other priorities.

The Quita Prospect, in the western part of the Dajarra Project, contains a BCL (bulk cyanide leach) gold stream anomaly and alluvial gold also occurs in the area. The source of the gold is unknown at this stage and further exploration to identify the source is planned early in the 2011 field season. The potential target in the area is a Tick Hill type gold deposit.

At the Wills Phosphate Prospect geological mapping and sampling were completed during the quarter in the southern soil-covered part to establish the likely position of the phosphate horizon to guide future drillhole positioning. This work indicates a potential strike length of many kilometers for the phosphate horizon.

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Superior Resources Limited

Samples from three of last years drillholes were also submitted for analysis for additional elements including rare earth elements. Two of the holes showed highly-anomalous yttrium values at the tops of the phosphatic intersections. This suggests that any higher-grade phosphate deposit in the area may contain appreciable yttrium.

Table 1. Yttrium values in previously completed drill holes at the Wills Phosphate Prospect	Table 1. Yttrium values in previously completed drill holes at the Wills Phosphate Prospect	Table 1. Yttrium values in previously completed drill holes at the Wills Phosphate Prospect	Table 1. Yttrium values in previously completed drill holes at the Wills Phosphate Prospect	Table 1. Yttrium values in previously completed drill holes at the Wills Phosphate Prospect	Table 1. Yttrium values in previously completed drill holes at the Wills Phosphate Prospect	Table 1. Yttrium values in previously completed drill holes at the Wills Phosphate Prospect
Hole	From (m)	To (m)	Interval (m)	Y(ppm)	P2O5 (%)	**Location **
WC005	5	7	2	622	10.64	Northern Area
WCS003	4	6	2	660	2.44	Southern Area

The yttrium zone in hole WCS003 lies above the previously announced (10 December 2010) shallow intersection of moderate-grade phosphate in hole WCS003 of 10m @ 10.3% P2O5 from 8m to 18m.

Inca Project

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138° E Walford Creek (Pb,Zn,Ag) 140° E
18° S
Nicholson
Project Bluebush (Pb,Zn,Ag)
Century (Pb,Zn,Ag)
Highland Plains (Ph) 0 1000km
Grevillea (Pb,Zn,Ag)
Victor Project
Lady Jayne (Ph)
D-Tree (Ph) Lady Loretta (Pb,Zn,Ag)
Camooweal Lady Annie (Ph)
0 50 100km
20° S
20° S
LEGEND
Inca Project Dugald River (Pb,Zn,Ag)
Exploration Permit - granted
Yelvertoft Prospect Sherrin Creek (Ph)
Ernest Henry (Cu)
Hilton (Pb,Zn,Ag) Exploration Permit - application
NORTHERN Mount Isa (Pb,Zn,Ag) Rocklands (Cu) CloncurryLarge base metal mine or deposit
Mount Isa (Cu) Mount Isa Large phosphate mine or deposit
TERRITORY QUEENSLAND
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Figure 3. Inca Project and principal prospect location.

The Inca Project (Figure 3) lies 110km northwest of Mount Isa and consists of two granted exploration permits (EPM15732 and EPM16027) and one exploration permit application (EPM18843). During the quarter EPM15044, which previously formed part of this project, expired and was not renewed.

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Superior Resources Limited

The project area includes Proterozoic sediments with a generally shallow to medium depth cover of Cambrian and later sediments. The principal targets in the Inca Project are copper and lead-zinc-silver deposits of the Mount Isa style. Phosphate in Cambrian sediments is also a target.

High order VTEM anomalies in the Buckley River area were located in July 2007 in a VTEM survey over part of the Inca Project. Follow-up work on the VTEM anomalies and limited previous drilling by MIM indicate that conductive graphitic siltstones explain at least some of the VTEM anomalies. Further investigations are required to determine if the conductivity anomalies in areas of no outcrop are related to mineralisation.

Considerable exploration for phosphate has previously been completed around the Inca Project area. The best intersection from this drilling is 5.3m @ 16.5% P205 from hole 43 drilled in the Yelvertoft area by IMC. Superior has not yet completed any drilling in the area for phosphate.

Victor Project

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138° E Walford Creek (Pb,Zn,Ag) 140° E
18° S
Nicholson
Project Bluebush (Pb,Zn,Ag)
Century (Pb,Zn,Ag)
Highland Plains (Ph) 0 1000km
Grevillea (Pb,Zn,Ag)
Kingfisher Copper Prospect
Victor Project
Harris Creek Prospect
Lady Jayne (Ph)
D-Tree (Ph) Lady Loretta (Pb,Zn,Ag)
Camooweal Lady Annie (Ph)
0 50 100km
20° S
20° S
LEGEND
Inca Project Dugald River (Pb,Zn,Ag)
Exploration Permit - granted
Sherrin Creek (Ph)
Ernest Henry (Cu)
Hilton (Pb,Zn,Ag) Exploration Permit - application
NORTHERN Mount Isa (Pb,Zn,Ag) Rocklands (Cu) CloncurryLarge base metal mine or deposit
Mount Isa (Cu) Mount Isa Large phosphate mine or deposit
TERRITORY QUEENSLAND
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Figure 4. Victor Project and principal prospect locations.

The Victor Project is situated 180km north-northwest of Mount Isa (Figure 4). The principal targets in the area are copper and lead-zinc-silver deposits of the Mount Isa style. The project is comprised of one granted exploration permit (EPM16028) and two exploration permit applications (EPM18840 and EPM19097). The project area is impacted by the Queensland

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Superior Resources Limited

Government’s Gregory ‘Wild Rivers’ high-preservation area.

The principal prospects in the Victor Project area are the Kingfisher Copper Prospect and the Harris Creek Prospect.

At the Kingfisher Copper Prospect compilation of previous exploration data, geological mapping and rock-chip sampling have identified considerable surface copper mineralization and a gravity survey has provided a number of prospective deep targets for drilling. Drilling of these targets has been frustrated by the declaration of the Gregory ‘Wild Rivers’ high-preservation area over the prospect. Efforts to have the area excised from the Gregory ‘Wild Rivers’ area have not been successful to date. These efforts continue.

Following an application made in December 2010, the Queensland Government recently notified Superior of a Collaborative Drilling Initiative (CDI) grant of $150,000 as a 50% subsidy of the direct drilling costs for drilling at the Kingfisher Copper Prospect. Drilling will only be possible if access to the ‘Wild Rivers’ area for exploration and mining is allowed.

As part of the ongoing work of identifying areas that are prospective for large mineral deposits of the Mount Isa style, Superior has been acquiring and reinterpreting airborne electromagnetic (AEM) surveys completed by previous explorers. Reinterpretation of two Geotem AEM surveys flown by a previous explorer in western northwest Queensland, has identified a late channel AEM anomaly in the Harris Creek area sourced within Proterozoic rocks beneath Cambrian sediments (Figure 5). The anomaly has a length of about 4km and is located within a package of conductive rocks (Figure 6) that can be correlated with the Riversleigh Siltstone which hosts the Grevillea copper-lead-zinc prospect some 40km further north.

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0 2.5 5km
7,860,000 mN 7,860,000 mN
Wild Rivers
High Preservation Area
(6,805 sq kms)
Harris Creek
Geotem Anomaly
7,850,000 mN 7,850,000 mN
EPM18840
Aster Imagery
(Iron)
Structure
250,000 mE 260,000 mE 270,000 mE
250,000 mE 260,000 mE 270,000 mE
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Figure 5. EPM18840 “Harris Creek” – False colour Aster satellite image showing the location of the Harris Creek Geotem anomaly in relation to the boundary of the ‘Wild Rivers’ highpreservation area (dashed line) and to the main drainage courses in the area.

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Superior Resources Limited

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0 2.5 5km
Prospective
Conductive Units
7,860,000 mN 7,860,000 mN
Wild Rivers
High Preservation Area
(6,805 sq kms)
Harris Creek
Geotem Anomaly
7,850,000 mN 7,850,000 mN
EPM18840
Data Source:
Geotem DEEP
BHP Urandangi and Barkly
Geotem Deep Surveys Channel 9Z
Structure
250,000 mE 260,000 mE 270,000 mE
250,000 mE 260,000 mE 270,000 mE
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Figure 6. EPM18840 “Harris Creek” – Geotem DEEP channel 9Z image showing the conductive sedimentary units (aqua colour) lying beneath the Cambrian cover rocks. These units are prospective for mineralisation of the Mount Isa style.

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0 2.5 5km
7,860,000 mN 7,860,000 mN
Wild Rivers
High Preservation Area
(6,805 sq kms)
Harris Creek
Geotem Anomaly
7,850,000 mN 7,850,000 mN
EPM18840
Data Source:
Geotem DEEP
BHP Urandangi and Barkly
Geotem Deep Surveys Channel 16X
Structure
250,000 mE 260,000 mE 270,000 mE
250,000 mE 260,000 mE 270,000 mE
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Figure 7. EPM18840 “Harris Creek” – Geotem DEEP channel 16X image showing the Harris Creek Geotem Anomaly, which is the principal target in the area.

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Superior Resources Limited

Application for exploration permit EPM18840 was made in August 2010 to cover the AEM anomaly and surrounding area. Unfortunately the anomaly lies partly within the Gregory 'Wild Rivers' high-preservation area and this could impact on granting of the tenement and completion of a work program on the area. As in the Kingfisher Copper Prospect situation, the anomaly is many kilometers distant from the nearest substantial watercourse and the rationale for including this area in a ‘Wild Rivers’ high-preservation area is questionable.

Exploration by previous explorers to the south and southwest of the Harris Creek area has identified a number of high-order soil lead anomalies. These anomalies occur in soils over Cambrian sediments and the area is considered to have potential for Mississippi Valley or Irish style lead-zinc deposits.

Some of these lead anomalies are held by other parties. However the lead anomalies in the southwestern part of the area were free of tenure and Superior applied for an exploration permit (EPM 19097 “Tots Creek”) over the area during the quarter. The ‘Wild Rivers’ high-preservation area partly encroaches on the area applied for but in this case it is restricted to the main drainage courses and adjacent country.

Compilation of the data over the tenement area is in progress. Figure 8 shows the lead anomalies as contours of soil lead values over a TM satellite image and Figure 9 shows an image of the compiled soil lead values from previous exploration.

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0 2.5 5km
7,840,000 mN 7,840,000 m N
7,830,000 mN 7,830,000 mN
EPM19097
Lead Contours
1000ppm
500ppm
200ppm
100ppm
7,820,000 mN 7,820,000 mN
220,000 mE 230,000 mE 240,000 mE 240,000 mE
220,000 mE 230,000 mE 240,000 mE 240,000 mE
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Figure 8. EPM19097 “Tots Creek” – Satellite image showing the exploration permit boundary, soil lead anomalies and the boundary of the ‘Wild Rivers’ high-preservation area (dashed line). The thicker dashed line indicates the boundaries of the areas that have been soil sampled by previous explorers.

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Superior Resources Limited

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0 2.5 5km
7,840,000 mN 7,840,000 mN
Wild Rivers High
Preservation Area
7,830,000 mN 7,830,000 mN
EPM19097
Soil Lead
500
400
300
200
Wild Rivers High
100 Preservation Area
0
(ppm Pb)
7,820,000 mN 7,820,000 mN
220,000 mE 230,000 mE 240,000 mE 240,000 mE
E
m
220,000 mE 230,000 mE 240,000 240,000 mE
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Figure 9. EPM19097 “Tots Creek” – A soil lead image showing the lead soil anomalies and the exploration permit boundary.

Nicholson Project

The Nicholson Project is located some 350 km north-northwest of Mount Isa and a few kilometres south of the Walford Creek lead-zinc-silver-copper deposit (Figure 10). It consists of one granted exploration permit (EPM15670) and one exploration permit application (EPM18203). The principal prospects are indicated in Figure 10.

The main unit with potential for the discovery of Mount Isa style mineralisation in the area is the Mount Les Siltstone which outcrops over a distance of about 40km. This unit hosts the Walford Creek mineralisation as well as a number of smaller prospects. The near-outcropping part of the Mount Les Siltstone has been drilled quite extensively. The unit generally dips southerly at a shallow angle and Superior has been exploring the down-dip extensions where no drilling has been done previously.

Superior has drilled the Walford South Prospect using airborne electromagnetics and gravity to delineate targets and has intersected about 20m of strongly pyritic shale within the Mount Les Siltstone. While these intersections are encouraging for Mount Isa style mineralization, they are deep and Superior’s attention has shifted to shallower areas of Mount Les Siltstone. At the Nicholson West Prospect about 30km southwest of Walford South a conductivity anomaly at about 300m depth within the Mount Les Siltstone has been interpreted from Superior’s VTEM survey. Drilling of this anomaly is planned for the 2011 field season.

Other areas of potentially shallower Mount Les Siltstone are also being investigated.

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Superior Resources Limited

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138° E Walford Creek (Pb,Zn,Ag) 140° E
18° S Walford South Prospect
Nicholson
Project Hedleys Uranium ProspectBluebush (Pb,Zn,Ag)
Nicholson West Prospect
Century (Pb,Zn,Ag)
Highland Plains (Ph) 0 1000km
Grevillea (Pb,Zn,Ag)
Victor Project
Lady Jayne (Ph)
D-Tree (Ph) Lady Loretta (Pb,Zn,Ag)
Camooweal Lady Annie (Ph)
0 50 100km
20° S
20° S
LEGEND
Inca Project Dugald River (Pb,Zn,Ag)
Exploration Permit - granted
Sherrin Creek (Ph)
Ernest Henry (Cu)
Hilton (Pb,Zn,Ag) Exploration Permit - application
NORTHERN Mount Isa (Pb,Zn,Ag) Rocklands (Cu) CloncurryLarge base metal mine or deposit
Mount Isa (Cu) Mount Isa Large phosphate mine or deposit
TERRITORY QUEENSLAND
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Figure 10. Nicholson Project and principal prospect locations.

Following an application in December 2010, the Queensland Government recently notified Superior of a Collaborative Drilling Initiative (CDI) grant of $45,000 as a 50% subsidy of the direct drilling costs for drilling at the Nicholson West Prospect.

The Hedleys Uranium Prospect lies within application for EPM18203 which was lodged on 21 July 2009. The prospect is a strong localised airborne uranium radiometric anomaly associated with the major Nicholson River Fault. The anomaly has previously been considered to be an anomaly related to radon gas dissolved in spring waters. However the anomaly lies about 150m above a major unconformity and it is possible that the radon is derived from uranium deposits on the unconformity. No drilling has been done on the area.

Superior’s is planning further work including drilling when the area is granted.

Cockie Project

The Cockie Project is located 210km north-northwest of Townsville in northeast Queensland (Figure 11). The project consists of a mining lease (ML6750) and a surrounding exploration permit application (EPM 18987) which is a competing application with another explorer.

The purchase of ML6750 “One Mile” was completed during the quarter but assignment of the mining lease has yet to be completed by the Queensland Government.

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Superior Resources Limited

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144° E 145° E 146° E
Mount Garnet
0 25 50km
18° S LEGEND 18° S
Exploration Permit - application
Mine or deposit 0 1000km
Einasleigh (Cu)
Ingham
Balcooma (Cu,Pb,Zn,Ag)
Kidston (Au) Cockie Project
19° S ML6750 Greenvale (Ni) Greenvale 19° S
Townsville
Ben Lomond (U)
144° E 145° E 146° E
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Figure 11. Cockie Project and ML6750 locations.

The project area covers a belt of volcano-sedimentary rocks of Cambro-Ordovician age which has potential for copper-lead-zinc-silver-gold deposits of the volcanogenic massive sulphide (VMS) type (eg Balcooma, Thalanga and Reward deposits of north Queensland).

A gossan with a length of about 400m and which shows low-grade gold values (Figure 12) outcrops within ML6750. Superior plans to drill the gossan following targeting of the area using modern geophysics.

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One Mile Gossan - Creek Exposure
Interpreted Interpreted Pyritic Schist
Massive Sulphide Semi-Massive Interpreted
(0.92 g/t Au) Sulphides Footwall
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Figure 11. Cockie Project – Photograph of a creek exposure of the gossan on ML6750 “One Mile” showing the low-grade gold result (0.92 g/t Au) obtained from sampling gossan after interpreted massive sulphides.

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Superior Resources Limited

CORPORATE AND FINANCIAL

In addition to cash of $2.3 million at the end of the March 2011 quarter, SPQ holds 7 million Deep Yellow Limited shares with a value of $1.5 million at the ASX closing price of $0.225 on Wednesday, 20 April 2011. This makes total cash and liquid assets available for exploration of approximately $3.8 million (5.0 cents per share).

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Ken Harvey Managing Director

Contact: Mr Ken Harvey Ph (07) 3839 5099 Further Information:

www.superiorresources.com.au

The information in this report that relates to Exploration Results is based on information compiled by Mr Ken Harvey, a full-time employee of the Company, who is a Member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Harvey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Harvey consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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