synopsis of announcement .. part 1

Outline of Announcement of 12th May, 2008 by RSL

Change in activities to Exploration & Mining Company

The Company will have to go through the process of re-complying with Chapters 1 & 2 of the ASX Listing Rules.

Overview of Core Assets:

The Company has projects in the NT, WA and Malawi (South Africa). Main focus is uranium. Many of the tenements are also prospective for other minerals, including iron in the Northern Territory.

Malawi Tenements

RSL has 2 projects – Chintheche – Uranium channel anomalies associated with late Tertiary sediments that are potential hosts for sediment-hosted uranium mineralisation.

Machinga: Anomalies are associated with alkaline intrusions which RSL intends to systematically explore for vein-style mineralisation.

Malawi has undergone positive social and political transformation in recent years. Govt is supportive of mining – including that of uranium.

Machinga (EPL 0230-077) 378km2 granted to Eastbourne Exploration P/L on 12/12/2007. Eastbourne Exploration is a wholly owned subsidiary of RSL.

In 1955 a radiometric anomaly was located . The two diamond drill holes intersected radioactive granitic and pegmatitic veins up to 2.5m in thickness. Downhole radiometric analyses gave max values of 700eppm U3O8 and 3000 eppm ThO2.

During 1986 an airborne magnetic and radiometric survey was carried out over Malawi. The survey located a number of uranium channel radiometric anomalies, including one with a peak value of about ten times background and a length of seven klms that is coincident with the eastern margine of the Malosa Pluton. RSL’s Machinga licence covers the group of anomalies.

The anomalies have the potential to contain significant concentrations not only of uranium, but also of other elements including tantalum, niobiu, and rare earth elements (REE).

The potential is also present for other types of mineralisation. Carbonatite volcanics associated with the intrusive complexes are prospective for REE and for phosphate. The Basement Complex is prospective for gold and base metals. Interpretation of the aeromagnetic data may indicate structures that could be associated with gold mineralisation. (top of page 4 of announcement)

RSL’s proposed exploration program in 2008 is to:

• Complete detailed geological mapping accompanied by scintillometer and XRF traverses of the areas of the radiometric anomalies;
• Complete soil geochemical surveys, trenching, and rock chip sampling over priority areas;
• Where required, acquire detailed magnetic data over the areas of the radiometric anomalies;
• Evaluate the anomalies, identify and prioritise targets and commence staged drill programmes into them.

RSL intends to initiate exploration within the tenement to identify other target areas for follow up investigation. First pass exploration of the alkaline ring complexes may be by stream sediment geochemistry including the collection and analysis of heavy mineral concentrates.

Chintheche project (EPL 0219-077) 210.9km2. Contains a number of uranium channel radiometric anomalies. The anomalies are over Basement Complex rocks and over younger clastic sediments that sit above and marginal to them. The younger sediments are prospective for roll front style uranium mineralisation and the basement rocks for vein style U-Nb-Ta-REE mineralisation.

The licence was granted to RRR plc in June 2007 and was transferred to RSL in Feb 2008.

The stronger anomalies are of the order of four times background. (see bottom of page 5 of announcement).

RSL’s proposed exploration is a similar staged programme to that proposed for its Machinga Project. It intends to initially concentrate on exploration for sediment hosted uranium mineralisation. Further exploration will be dependent upon earlier results.

More to come…..