Exploration licence 3001 “Mount Yerila” is situated in the northern Flinders Ranges in the Moolawatana area, approximately 140 km east of Marree. The target commodity sought by Quasar Resources is uranium mineralisation in Tertiary sands and iron-oxide cooper-gold (IOCG) mineralisation. “Mount Yerila” occurs in the north-western area of the Frome Embayment. It is bordered the west by the Proterozoic rocks of the Mt Painter and Mt Babbage Inlier’s. Its easternmost border is proximal to the western shore of Lake Callabonna. In section, Quaternary overburden are underlain by Tertiary sediments of the Namba and Eyre Formations. The Tertiary sequence in the western part of the tenement is typically no more than 50 m thick, whereas in the eastern part of the tenement, thicknesses can be up to 220 m. The Cretaceous sediments of Maree Subgroup conformably underlie Tertiary sequences which comprise the Bulldog Shale. Palaeozoic-Precambrian rocks of the Northern Flinders Ranges (Mt Painter and Mt Babbage Inliers) are basement to the Cretaceous-Tertiary cover sequences. Within the Frome Basin, palaeochannel/sediment-hosted uranium mineralisation has been identified within the sands of the Tertiary Namba (e.g., Beverley deposit) and Eyre Formations (e.g., Honeymoon). The occurrence of high-U granitic rocks of the Mt Painter and Mt Babbage Inliers at the southwest boundaries of EL3001 and the occurrence of variably oxidized/reduced sand within the Tertiary cover sequences within EL3001, makes the tenement highly prospective for sediment-hosted uranium mineralisation. During the 2002-2003 licence year, Year 1, Quasar Resources undertook an assessment of the regional TEMPEST EM data and regional airborne magnetic data, completed a 12- hole rotary-mud drilling program (data not submitted), conducted reconnaissance geological mapping and completed a regional gravity survey over areas of magnetic rocks forming the eastern extension of the Mt Painter and Mt Babbage blocks (data not submitted). Negotiations for a new exploration agreement with the Adnyamathanha and Kuyani claimants continued. The 12 rotary-mud holes were drilled for a total length of 972 m as part of a regional exploration program for palaeochannel-hosted uranium within the Tertiary sequences of the Frome Basin. All holes were logged using a down-hole geophysical probe. A very weakly mineralised north/south gamma trend in the Eyre Formation was delineated in the central portion of the tenement (data not submitted). Quasar’s ground gravity surveys were undertaken in the northwest and central portions of the tenement on 100 m x 100 m and 800 m x 400 m grids respectively. Quasar believes that the “Eastern” gravity target is the most significant defined in the surveys; the gravity centre is approximately 1 km from the existing drillhole in this area, modelling results suggest that a “basement high” with densities comparable to the metasediments intersected in this hole provide an adequate explanation for the observed gravity (data not submitted). During the 2003-2004 licence year, Year 2, Quasar drilled a single diamond hole for 363 m to test the Woolatchi magnetic anomaly. Downhole geophysics and geochemistry were acquired. The drillhole consisted essentially of massive to slightly sheared grey to pink granite comprising quartz, feldspar and biotite with varying amounts of pyrite, pyrrhotite and magnetite. Moderate veining is present, although veins rarely exceed 5cm in width. Veins are dominantly monomineralic and comprise quartz, magnetite or pyrite. Sulphides and magnetite also occur as disseminations up to 0.5 m in width. A highly magnetic zone was intersected at 200 m-210 m, which fits the predicted magnetic model based on ground magnetic data. The widespread distribution of disseminated magnetite throughout the entire core, however, could also account for the observed regional anomaly, with less scope for massive iron-oxide zones. Geochemical data for 186 samples from WDDH01 (2 m intervals, from 5-363 m) were obtained. Only three samples out of 186 exhibited U anomalism and only one sample was anomalous in copper (800 ppm). During the 2004-2005 licence year, Year 3, no exploration activities were undertaken in the reporting period. During the 2005-2006 licence year, Year 4, Red Metal Limited entered a joint venture with Quasar Resources Pty Ltd, Paladin Energy Minerals NL and JE Risinger to test a coincident gravity/magnetic anomaly for IOCG mineralisation. Red Metal withdrew from the Farm-in agreement in early 2006 following the results of drilling. Quasar worked on geological reviews considering new exploration models developed from newly discovered uranium mineralisation. Exploration targeted iron oxide hosted copper-gold mineralisation within Proterozoic basement, along with calcrete-hosted Uranium within Quaternary paleochannels. No significant results were returned from either exploration phase. Work completed during the joint venture period by Red Metal and Quasar included: • IOCG: Infill gravity survey and geophysical modelling of a regionally significant gravity anomaly. The gravity survey consisted of 1230 stations on an initial 400 m x 800 m grid spacing, with an infill grid of 200 m x 200 m. • IOCG: Deep drill test with drill hole RGDH-05-01 intersected moderately altered calcsilicate sequences from 434.8 m to final depth of 752.3 m. Weakly elevated Zn assays were returned several narrow intervals between 434.8 m and 482 m. Rock types intersected do not suggest proximity to iron oxide Cu-Au targets. No further work is warranted. • Calcrete U: Program of shallow aircore (8 holes for 308 m) traverses across interpreted channel areas. All basal Quaternary sequences intersected indicated high-energy environments not interpreted to be suitable for calcrete style U mineralisation. All samples collected were scanned with a scintillometer. No anomalous scintillometer responses were returned. No further work is warranted. During the 2006-2007 licence year, Year 5, Quasars exploration efforts targeted sedimentary hosted uranium mineralisation within Tertiary sediments. Exploration activities in the reporting period consisted of mud rotary drilling of tertiary sediments. Work on the project comprised drilling of 12 rotary mud drillholes for a total of 1564 m. All drillholes were geophysically logged. Eight of the twelve drillholes were geophysically logged in order to determine uranium grade and interpret lithology. No significant gamma equivalent grades were intersected. Strongly reduced Eyre formation sediments were intersected. These are considered to be prospective as a host for uranium mineralisation. The drillholes were sited from a combination of a review of historical exploration data and a detailed review of multiple geophysical datasets including: the PIRSA radiometric, magnetic and gravity datasets, the shuttle DEM from NASA, open file satellite imagery (Google earth) and TEMPEST collected by Quasar Resources in 2003. Each was interpreted separately then the interpretations compared. The radiometric data was discounted because it was interpreted to reflect modern drainage off the radiogenic Mt. Painter and Mt Babbage inliers rather than the geology beneath. The satellite imagery was deemed redundant as compared to the DEM. During the 2007-2008 licence year, Year 6, work on the renewed project tenement (EL 3903) comprised drilling of 5 rotary mud drillholes for a total of 1032 m. Holes were designed to be stopped within the Bulldog Shale so that the entire Tertiary sequence was investigated. A total of 448, two to eight metre composite samples were taken (honouring the geological intervals), with these submitted for geochemical analysis. Only one drill hole (YR029) was geophysically logged with a suite of tools that characterized lithology and quantified uranium grade. No significant gamma equivalent uranium grades were intersected, with the highest being 100 ppm eU3O8 (154.4-154.45 m). The presence of potential host rocks for palaeochannel hosted uranium mineralisation and other similarities in stratigraphy with both Beverley and Four Mile suggests additional drilling is warranted. Target generation derived from new data in the Beverley/Four Mile region should be applied to this northern portion of the Frome Basin to assist exploration. During the 2008-2009 licence year, Year 7, work on the project comprised drilling of 5 rotary mud drillholes for a total of 1216 m with all 5 holes geophysically logged. No anomalous gamma intercepts were recorded. The program was planned to investigate the sediments flanking the Parabarana Creek and provided an extension of the North Mulga (EL3934) range-front drilling program, along strike from the Yadglin prospect. The Yadglin prospect hosts uranium mineralization within the Namba Formation. A ground gravity survey consisting of 230 stations was also undertaken in July 2009. The aim of the survey was to complete the coverage of gravity data over the tenement to a maximum spacing of 2 km x 2 km.