SUREFIRE RESOURCES NL — Interim / Quarterly Report 2010

Apr 29, 2010

QUARTERLY ACTIVITIES REPORT – MARCH 2010

Western Australia – E57/420 (Unaly Hill)

As reported previously, BRD were in receipt of the highly promising diamond drilling results from the brief program undertaken at Unaly Hill. The results were published and subsequent to that time, we have undertaken further desk top studies and extensive evaluations of the options available to the company.

It was generally agreed that once the drill results were tabled, the clearest way forward was to get an understanding of the metallurgy which would form the basis, of where the priorities should lie for the 2010 development of those results.

Accordingly, after consultation with a process engineering office in Perth, Promet Engineers (ProMet), it was recommended that some Davis Tube Recovery (DTR) test work should be undertaken, which was commissioned in the early part of March; whilst every endeavour was made to release the details of the results prior to the end of this quarter, they were ultimately advised to the market on 1 April 2010, the key points of which were –

• Preliminary Davis Tube Recovery (DTR) test work confirms that a high grade vanadium concentrate can be produced from Unaly Hill mineralisation
• Concentrate grades of 59% Fe and 1.25% V2O5 at coarse (150 micron) grind
• Favourable comparisons to Windimurra vanadium operations located 30km to west
• Scoping study proposal by independent consultants under review

Test work was completed under the supervision of independent consultants ProMet, and involved the crushing and grinding of core samples to a variety of sizes to give different concentrate grades (Table 1).

Size	Weight
(Micron)	Recovery	Fe	SiO2	Al2O3	TiO2	V	V2O5
500	62.19	55.28	3.3	3.13	13.6	0.64	1.14
235	57	57.49	2.18	2.35	13.3	0.68	1.21
152	54.98	59.1	1.55	1.88	13.16	0.70	1.25
76	53.03	60.7	1.05	1.41	12.81	0.72	1.28
44	51.12	61.7	0.72	1.04	12.33	0.74	1.33
34	50.79	61.31	0.64	0.94	12	0.74	1.31
33	50.5	61.71	0.64	0.9	11.9	0.74	1.33
28	50.15	61.61	0.62	0.86	11.7	0.75	1.33

Table 1 Davis Tube Recovery concentrate results

Vanadium Grade in Concentrate

The vanadium grades in concentrate are considered to be particularly encouraging. The criteria for magnetite for a feedstock to a vanadium processing plant – similar to that at Windimurra - is that silica be less than 2% and that the vanadium pentoxide (V2O5) grade be as high as possible. This indicates that a grind of 80% passing 150micron would be suitable when compared with publically available data on the Windimurra plant (Table 2). These initial results indicate that the orebody has the potential to produce a vanadium concentrate by standard metallurgical processes which is suitable as feedstock for a conventional vanadium processing facility, and compares very favorably with the Windimurra operation located 30km to the west.

	Unaly Hill(20% Fe cutoff)	Windimurra(0.275% V2O5cutoff)
% V2O5in sample	0.67	0.46
% V2O5yield to Cons	85-90%	68%
Grade in Concentrate
at 80% passing 150	1.25%	1.26%
micron

Table 2 Unaly Hill / Windimurra vanadium in concentrate comparison

On 8 April, it was announced that an initial exploration target had been determined for the project indicating the following –

• Initial Exploration Target* of 180 to 200 million tonnes @ 30% 44% Fe , 0.6% – 0.9% V2O5, 9% -13% TiO2 For the Unaly Hill Project
• Exploration Target based on a 3km portion of strike length out of an identified 11km magnetic anomaly
• RC drilling program planned to commence in May 2010

Recent exploration programs have been successful in delineating a series of magnetite lenses within a layered metagabbro intrusive. This style of layered intrusive is an important host for vanadium and titanium-bearing magnetite iron deposits such as those at the Speewah Project (NiPlats Australia Ltd) or the Balla-Balla titanomagnetite deposit (Aurox Resources Ltd).

Independent consultants CSA Global Pty Ltd (CSA) were commissioned to assess the exploration potential of the project based on the exploration programs completed to date. The main data used were an aeromagnetic interpretation completed by Southern Geoscience Consultants (SGC), a three hole RC percussion drilling program and a two hole diamond core drilling program both completed by BRD. Based on these data, CSA has derived an Exploration Target of 180–200Mt of magnetite-bearing material may be present with grades ranging from 30%-44% Fe, 0.6%-0.9% V2O5, 9%-13% TiO2 for the Unaly Hill Project

The Exploration Target as determined by CSA covers a 3km portion of an 11km long magnetic anomaly. The remaining strike extent is prospective for additional magnetite mineralisation but requires additional exploration to assess the magnetite content and continuity of the deposits.

* The term "Exploration Target" should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore those terms have not been used in this context. Exploration Targets are conceptual in nature, and it is uncertain if further exploration will result in the determination of a Mineral Resource.

On 12 February 2010, the company announced that the Exclusive Dealing Agreement and Non Circumvention Agreement entered into with Shanxi Donghui Group, of Taiyuan, China, had been terminated by mutual consent between all parties in respect of the Unaly Hill agreement.

Although the main activity of the property is directed towards the magnetite, vanadium and titanium prospects, the area is still being considered for gold which to date, has been the subject of discontinuous exploration activity in the past. It is considered that the tenement is clearly prospective for gold given that it straddles the regional scale Youanmi Shear Zone.

Overseas – Bengkulu Coal Prospect (Indonesia)

As previously reported the company entered into an Exclusive Dealing Agreement with Indonesian company PT. Inmas Abadi, in relation to their sub bituminous coal deposit in Bengkulu Province, on the island of Sumatra.

Under the agreement, the company has the exclusive right for a period of five months to conduct Due Diligence in respect of legal and geological documentation for the concession area presented by the vendor; that agreement is due to expire on May 7 2010 unless exercised or extended.

In the period since the last report, extensive legal and geological evaluation work has been undertaken which will assist the company in making a decision at the appropriate time. Although it was always understood that the legal confirmation of tenure would be the most challenging, this component has certainly proven to be just that and has taken more time than first imagined. Whilst that process was being worked through, considerable ground was being made with historical geological records tabled, and several meetings with past consultants and service providers were undertaken. A clearer picture and decision will be made in respect of this project prior to the EDA period being reached.

The Bengkulu Province is one of the most significant coal producing regions in Indonesia and the market for sub bituminous coal is largely directed towards local power utilities, with the Indonesian government being a primary market for producers. Indeed, the government power utility PT Perusahaan Listrik Negara (PLN), is well into the first stage of fast tracking its 10,000MW power plant expansion and has declared it will be requiring in the next nine years, an additional 30,000,000 tons pa from present levels. Supplies for these forward contracts have already been let, with more being finalised. Stage 2 development and construction, with an additional capacity of 10,000MW would follow.

BRD will continue to explore the availability of quality coal, gold and other mineral deposits in Indonesia, and is presently broadening and strengthening the base for future opportunities in that market. To assist with that program, BRD appointed an independent consultant in Jakarta under a short term contract and will review the progress before committing to an extension.

Corporate

On 28 January 2010 the company announced that it had transferred the Share Registry to Advanced Share Registry Services Ltd, effective February 1st 2010.

Post quarter, the Company raised $540,000 by a placement to Sophisticated Investors of 60,000,000 shares at $0.009 each. The funds will be used for the ongoing exploration, working capital, corporate and administrative activities, and identification of new opportunities.

Other Operations

During the quarter, the Company continued to review a number of mining and exploration prospects both locally and overseas, with more emphasis placed on the overseas sectors.

The Company continues to seek out opportunities for further entry into the mining exploration sector and is hopeful of bringing to the table, projects with merit for shareholders.

Gordon S. Hatch Managing Director

Information in this report that relates to metallurgical results reflects information compiled by Mr Brian Povey, who is a Principal Consulting Metallurgist with ProMet Engineers, a fellow of the AusIMM, and an independent consultant to the company. Mr Povey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity upon which he is reporting on 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 Povey consents to the inclusion in this report of the matters based on the information compiled by him, in the form and context in which it appears.

Information in this report that relates to exploration targets reflects information compiled by Mr Daniel Wholley, who is a Director of CSA Global Pty Ltd, a member of the Australian Institute of Geoscientists and an independent consultant to the Company. Mr Wholley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity upon which he is reporting on 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 Wholley consents to the inclusion in this report of the matters based on the information compiled by him, in the form and context in which it appears.