SUREFIRE RESOURCES NL — Interim / Quarterly Report 2011

Jan 30, 2012

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QUARTERLY ACTIVITIES REPORT – DECEMBER 2011.

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

In November 2011, the Company announced an Inferred Mineral Resource estimate for Unaly Hill (E57/420), Western Australia.

Highlights of the announcement were:

• Significant vanadium Inferred Resource with over 86 million tonnes of 0.42% V2O5 at a 0,30% cut-off grade

• Confirmation of similar mineralization type to Quest Minerals Limited’s (ASX:QNL) Victory Bore Deposit

• Two significant high-grade zones

• The deposit remains open along strike and depth with strong potential to increase the estimated resource

• Conceptual study scheduled and is now underway

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Figure 1 Location and geological setting of the Unaly Hill Project

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Unaly Hill Vanadiferous Magnetite 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 Mineral Resource for the vanadium mineralisation is 86 Mt @ 0.42% V2O5 (Table 1). The Mineral Resource is based on a +0.30% V2O5 cut-off.

	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 Unaly Hill project area is located approximately 48 km south of Sandstone 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 (Figure 2). The vanadiferous magnetite gabbros are weathered to 40m with fresh gabbro passing through 5m of saprorock.

The Youanmi Shear Zone transects the Project area through its centre and could be traced for more than 25km. It forms a prominent ridge along which substantial quantity of quartz have been injected. Although most of the strike of the shear zone is unproductive, there are numerous smallscale workings along its flanks. This vein structure has not yet been systematically prospected for gold and still represents a target.

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Figure 2 Geological map of the Atley Igneous Complex showing the Black Ridge tenement

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.

Durminskoe gold and silver project, Far Eastern Russia

Access to the Durminskoe gold and silver project located in Kharbarovski Krai in Far East Russia has been restricted due to inclement weather conditions and temperatures reaching -30°C. No further exploratory work can be conducted until March 2012 when conditions should be more amenable.

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Corporate

During the quarter 10,500,000 unlisted options exercisable at $0.10 each and expiring on 31 December 2011 were not exercised by the due date and therefore lapsed.

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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