SUREFIRE RESOURCES NL — Interim / Quarterly Report 2012

Jul 30, 2012

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31 JULY 2012

QUARTERLY ACTIVITIES REPORT – JUNE 2012

Unaly Hill (E57/420), Western Australia –Vanadium- Magnetite

The Company has previously announced a Vanadium-Magnetite Inferred Mineral Resource with over 86 million tonnes of 0.42% V2O5 at a 0.30% cut-off grade and confirmation of similar mineralization type to Quest Minerals Limited’s (ASX:QNL) Victory Bore Deposit. There are two significant high-grade zones and the deposit remains open along strike and depth with the potential to increase the estimated resource.

Following the announcement of the Inferred Mineral Resource in 2011 which is summarized in the following table, the Company has been investigating opportunities to maximize on its return before any additional exploration takes place, given that the project tonnages are already substantial.

The Mineral Resource for the vanadium mineralisation is 86 Mt @ 0.42% V2O5 and is based on a +0.30% V2O5 cut-off.

			Inferred Mineral Resource for V2O5% (Oct 2011)	Inferred Mineral Resource for V2O5% (Oct 2011)	Inferred Mineral Resource for V2O5% (Oct 2011)	Inferred Mineral Resource for V2O5% (Oct 2011)	Inferred Mineral Resource for V2O5% (Oct 2011)
Million tonnes		V2O5%		Content (Kt)V2O5	Fe2O3%	Fe %		TiO2%	SiO2%
86.2		0.42		36,533	24.79	23.57		4.51	30.1

Table 1 Unaly Hill vanadium Inferred Mineral Resource tonnage and grade report

The Company is currently discussing with its mining consultants the processing of fine crushings by densimetric beneficiation involving jig and spirals, or heavy-media, rather than conventional fine-grind and magnetic concentration; this enables the transitional oxide zone as well as the primary BIF to be commercialized. The metallurgical validation of the densimetric process route is expected to be completed during the next quarter.

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Figure 1 Location and geological setting of the Unaly Hill Project

Drilling completed in 2010 targeted titaniferous magnetite mineralisation and a maiden Inferred Mineral Resource revealed significant high grade vanadium mineralisation in association with magnetite iron mineralisation.

The Unaly Hill project area is located approximately 48 km south of Sandstone in Western Australia and around 30km ESE of Atlantic Ltd’s Windimurra vanadium plant which recently successfully achieved its first ferrovanadium production.

Recent drilling and studies have highlighted excellent vanadium grades associated with the gabbro-hosted magnetite iron mineralisation. There are two main magnetite horizons, with overall strike length of 6 kilometres and widths of 25 to 40 metres and specific gravity of 3.5.

The Unaly Hill vanadium mineralisation occurs within a titaniferous magnetite sequence hosted by the Atley Intrusion. A major 25km long aeromagnetic anomaly is believed to cover this vanadiferous magnetite horizon. A greenstone series about 1 km wide with outcrops occurring over 4 km of strike length are situated immediately to the east of the Atley Intrusion.

Aeromagnetic data interpretation of the Unaly Hill Project and the Quest Minerals Limited (ASX:QNL) Victory Bore deposit to the north indicates that the vanadiferous magnetite horizons persist throughout most of the Atley Igneous Complex. Their presence was also confirmed by drilling.

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Avdrant Rare Earths Project, Mongolia

On 5 July 2012, the Company announced that the results of the due diligence conducted on the Avdrant Rare Earths project in Mongolia did not support continued development of this project and, as the Company has been unable to replicate and verify the results and grades as presented to it when the project was introduced, the Company would not be proceeding.

Durminskoe Gold and Silver project, Far Eastern Russia

The Company continues to explore ways in which the returns from this project can be optimized and initiatives are underway to advance the project further.

The Company continues to actively pursue its objective of identifying value adding project opportunities and to create shareholder wealth.

Corporate

On 11 April 2012, the Company announced the appointment to the Board of Mr. Robert Molkenthin as Executive Director. Mr. Molkenthin joined the Company in July 2011 as Chief Operating Officer and continues in that role.

The Company also advised that non-Executive Director, Mr. Angus Middleton resigned, effective 13 April 2012.

DAVID SEMMENS Company Secretary

QUALIFYING STATEMENTS

JORC compliance

The information in this report that relates to the drilling data and geological interpretations is based on information compiled by Mr V Trashliev who is a member of the South African Council for Natural Scientific Professions (“SACNASP”). Mr Trashliev is responsible for the Mineral Resource modelling and reporting and is an employee of Gemcom Pty Ltd. The Competent Person responsible for the Independent Audit of the Mineral Resource is Mr Andrew Bewsher from BM Geological Services Pty Ltd and is a member of the Australian Institute of Geoscientists (MAIG). Both persons have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that they are undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and do consent to the inclusion in the report of the matters based on information in the form and context in which it appears.

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