During 2012, Afmeco conducted a fourth exploratory drilling campaign spread over six of its eight Curnamona Project tenements, which was designed to test the extensions of the Erudina, Yarramba and Coolibah Palaeochannels, as well as probing in basin margin areas proximal to source rocks, and likewise investigating the potential of remaining untested areas. Between 20/4/2012 and 22/9/2012, Thompson Drilling Company Pty Ltd drilled 133 vertical rotary mud open holes for a total penetration of 17,881 m within ELs 4229, 4234, 4236, 4317, 4318 and 4623, at a total cost of A$2.39 million. The drillholes had an average depth of 134.5 m, and the deepest hole reached a maximum depth of 216 m. The holes were terminated when basement consisting either of Cambrian Balcoracana Formation, Mesoproterozoic Benagerie Volcanics or Cretaceous Bulldog Shale was encountered. In detail, 32 holes for 4363 m were drilled on Lake Carnanto EL 4229, 12 holes for 1738 m were drilled on renewed Erudina EL 4234, 30 holes for 2561 m were drilled on renewed Lake Namba EL 4236, 13 holes for 2021 m were drilled on Round Hill EL 4317, 17 holes for 1885 m were drilled on Nillinghoo EL 4318, and 29 holes for 5313 m were drilled on Drennans Hut EL 4623. Geological logs and cross-sections summarising the raw data obtained by the drilling are presented as appendices to the subject report. Down-hole geophysical probing was done at the completion of drilling by Borehole Wireline Pty Ltd in order to record information about gamma radiation and electrical characteristics of the sediment formations. Drill cutting samples were collected systematically every two metres and complete chip tray sections were taken for all holes. Cutting samples of complete hole RH_0001_1, RH_0011_1, DRH_0008_1, DRH_0018_1, NG_0006_1, NG_0016_1, ER_0247_1, DRH_0027_2, LC_0220_1, LC_0230_1, LC_0240_1, LN_0106_1, LN_0116_1 and LN_0126_1 were sampled for DMITRE’s core storage facility. After interpreting its latest drilling results, which proved quite disappointing, Afmeco concluded that all of its exploration data obtained to date over the Curnamona Project tend to invalidate the possibility of finding an economically-sized sedimentary uranium deposit. The basis for forming this opinion lay with the following observations: • in the south-western part of the project (i.e. on the Erudina, Round Hill, Drennans Hut and Nillinghoo tenements) - o The Erudina Palaeochannel mineralisation is too scarce, with limited thickness; o The lithology is not adapted to ISR (as per Honeymoon deposit emerging technical difficulties); and o The Erudina Palaeochannel has no extension further westwards or northwards, contrary to what had been supposed. To elaborate further, the exploration results indicated that the Erudina Palaeochannel is mostly restricted to the Erudina tenement, and has no obvious extension into the neighbouring tenements as initially believed. Thicknesses of sand units reduce significantly heading westwards and approaching the Flinders Ranges (consisting of uplifted Adelaidean metasediments). To the north, distribution of the palaeochannel system appeared to have been heavily influenced by a main NE-SW trending fault, evidenced from both historical data and from Afmeco's TEMPEST airborne EM survey. Past movements on this fault have probably controlled the amount of accumulated sediment in the area. Drilling results obtained from Nillinghoo showed that only a minimal amount of sand had been deposited within a SE-NW aligned palaeochannel. These sands are mainly oxidised, and did not reveal any interesting radioactivity anomalies. Regional exploratory drilling done on the northern half of the Erudina tenement had provided quite disappointing results. The sand proportion dramatically decreases towards the east, and the sands which exist are mainly oxidised, with typical well rounded hematite gravel channel lags. However, Afmeco expected that the south-western Curnamona region may still be prospective for secondary uranium mineralisation of some significance, because it lies in such close proximity to uranium-bearing granites (e.g. Crocker Well and Mount Victoria). • in the north-eastern part of the project (i.e. on the Lake Namba and Lake Carnanto tenements), despite the significant amount of drilling performed during 2006, 2007, 2008 and 2012, the potential for uranium discovery seems to be quite low - o The 2012 drilling campaign assessed main “known” palaeochannels (Coolibah and Yarramba) and covered untested areas where the EM/gravity signal is difficult to interpret. Unfortunately, results were disappointing. The Coolibah Palaeochannel does not seem to extend to the north-east, but appears to debouch into a larger depositional system (palaeolake?). In the Yarramba Palaeochannel portion delineated by drilling done during 2012, thick sand intervals were intersected, with minor radiometric anomalies intercepted within organic clay interbeds, but they do not present good mineralisation potential; o Drilling done in the southern part of the Lake Namba tenement found that the subcropping basement lies between 30 to 40 m deep, but it has no evident incised channel features. Drilling done in the northern part ofthe tenement disclosed a thin (less than 10 m thick), slightly reduced sand sequence lacking any radiometric anomalies. Both of these targeted palaeochannel systems have highly reduced basal Eyre Formation sands with no obvious post-depositional oxidation history, which therefore greatly reduces the likelihood of finding any major occurrence of redox-related uranium mineralisation. • in the western part of the project area - o No decent intersections of sand were made; and o the likely uranium sources are too distal. • in the northern part of the project area - o Eyre Formation sands are generally fully reduced or are unaltered; and o the likely uranium sources are too distal.