SUREFIRE RESOURCES NL — Interim / Quarterly Report 2011

Apr 28, 2011

QUARTERLY ACTIVITIES REPORT – MARCH 2011.

Western Australia – E57/420 (Unaly Hill)

After a review of the data obtained to date in respect of the Company's highly prospective Magnetite-Vanadium-Titanium tenement at Unaly Hill, the Company has engaged CSA Global Pty Ltd as consultants to further analyse this data and prepare a drilling programme which will give a definitive resource for the project to be quantified.

The magnetite-vanadium-titanium mineralization at Unaly Hill is associated with a pronounced aeromagnetic anomaly which can be traced for about 11 kms in BRD's exploration licence. This anomaly extends for at least 2kms south along the strike zone into the neighbouring tenement held by Meteoric Resources NL (ASX code: MEI) with whom BRD as a Farmin and Joint Venture agreement. To date, this major anomaly has been traced over a strike length of some 14 kms, of which, at least 11kms falls within BRD's E57/420 and some 7.5 kms of this anomaly still remains to be tested.

Following receipt of the proposed drilling programme from CSA Global, the Company will look to commence on-site work as soon as practicable.

The Company has previously advised that preliminary DTR test work undertaken upon samples from its diamond drilling programme shows the potential for the production of a high grade vanadium concentrate. The highlights of this programme 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 the west

Test work was completed under the supervision of independent consultants ProMet Engineers (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 Concentrateat 80% passing 150micron	1.25%	1.26%

Table 2 Unaly Hill / Windimurra vanadium in concentrate comparison

Western Australia – E57/760 (Four Corners Well)

In addition to the Unaly Hill evaluation noted above, the results of the exploratory drilling holes undertaken on the E57/760 tenement which is situated adjacent to BRD's Unaly Hill magnetitevanadium-titanium project and is 100% owned by Meteoric Resources NL (ASX code: MEI), were most encouraging. MEI have been advised by the Company that the initial funding for exploratory investigation was completed within the combined Unaly Hill / Four Corners Well programme and results are being scrutinized with all assays of that programme.

The initial agreement with MEI under which BRD could earn up to 60% interest in E57/760 by spending $1,000,000 over a three year period was extended to six years, with all other conditions unchanged, and BRD exercised its Option to enter into a Joint Venture with MEI in respect of its E57/760 tenement. Expenditure of an additional $500,000 within a futher one year period would allow BRD to earn a total of 70% in the tenement after which a contributing JV will be formed.

BRD are continuing to formulate a forward programme and will, in accordance with its continuing disclosure obligations under ASX Listing Rule 3.1, ensure the market is kept fully informed.

International Opportunities

Post quarter, on 19 April 2011, the Company advised the market that a Heads of Agreement had been entered into to carry out due diligence on the Durminskoe gold and silver project located in Kharbarovski Krai in Far East Russia. The project has had substantial exploration and 'technical' assessment carried out to date, and environmental, hydrological and financial studies completed.

The company will review all data and assess the current exploration target estimate of 3.9-3.0 Mt @

2.4-2.9g/t Au for 300,000 to 340,000 oz of gold*. During the due diligence period, other areas and known zones of gold mineralisation within the proximity will be assessed.

The area is located within the Khabarovsk region in the far eastern federal district which is one of Russia's largest administrative regions and, historically, the most important mining region in the Russian Far East. Vast and complex fields exist containing mineable gold, tin, copper, silver, tungsten, bismuth and indium.

The region falls within the Khabarovsk legislative territory which passed laws in 2000 that provide for the protection of investor rights, governmental support and tax privileges for investors.

The Company believes that, apart from this project, the resources and mineralization of the area give the Company the opportunity to be a forerunner in the exploration for and extraction of other commodities in this mineral rich area. This would be conducted in conjunction with local partners with whom the Company is strengthening relationships.

Corporate

Post quarter, on 21 April 2011, the Company announced its intention to undertake a nonrenounceable entitlements issue on the basis of one (1) new share for every four (4) shares on issue at 1 cent per share to raise approximately $1.5 million (before costs).

It is proposed that one (1) free attaching option will be issued for each share issued. The free attaching options will be exercisable at 1.5 cents each and expire approximately 18 months from date of issue. It will be a term of these free attaching options that in the event they are exercised within the first four (4) months from grant (Initial Period), a new option will be issued for no further consideration. The new options will be exercisable at 1.8 cents each and expire on or about 18 months from expiry of the Initial Period.

Further information regarding the entitlements issue (including the terms of the securities offered) will be set out in a prospectus to be lodged with the Australian Securities and Investments Commission in the near future.

Funds raised from the offer will be allocated to the Company's existing exploration programme at Unaly Hill, Western Australia and to provide additional working capital to fund costs associated with the Company's continued investigation of new project opportunities both in Australia and overseas.

The Company has advised that the following unlisted options have been cancelled in accordance with the terms and conditions of those options:

1,000,000 exercisable at $0.04 each and expiring 30 November 2012 1,000,000 exercisable at $0.07 each and expiring 30 November 2012 1,000,000 exercisable at $0.10 each and expiring 30 November 2012

Further to the resignation of the Managing Director of the Company, the Board of Directors have appointed a leading H.R. Consultant firm to assist in identifying a suitable person to lead the Company in the next stage of growth. The Board is confident that an appointment will be made without undue delay.

Following the resignation of the Non-Executive Chairman, Mr Roger Smith, the Company was pleased to announce the appointment of Mr Alan Winduss as Non-Executive Chairman with effect from 31 March 2011.

DAVID SEMMENS Company Secretary

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.

*The exploration target range reported is conceptual in nature. There has been insufficient exploration completed to date, so the data will need to be assessed to determine whether it is sufficient to define a JORC Mineral Resource and it remains uncertain if further exploration will result in the determination of a Mineral Resource.

The information in this report that relates to Exploration Results and the Exploration Target Potential is based on information compiled by Mr Nik Sergeev of CSA Global who is an independent consultant to the company. Mr Sergeev is a Member of the Australian Institute of Geoscientists and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person in terms of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2004 Edition). Mr Sergeev consents to the inclusion of such information in this Report in the form and context in which it appears.