'announcement out'.

4 August 2005
Company Announcements Office
Australian Stock Exchange Limited
Level 4
Exchange Centre
20 Bridge Street
SYDNEY NSW 2000
Dear Sir / Madam
MME PRESS RELEASE – REASONS FOR REFUSAL OF NUCLEAR FUELS
APPLICATION
The Company wishes to advise that it is yet to receive any official correspondence addressed
to it from the Mining Commissioner regarding reasons for the Ministry of Mines & Energy,
Namibia (“MME”) refusing the Company’s applications for the inclusion of nuclear fuels within
the scope of permitted exploration activities on the licences covering the Erongo Project
(EPLs 2805 – 2811).
The Company has however become aware of a press release issued by the Honourable E
Nghimtina, MP, Minister of Mines and Energy, Namibia that relates to the above matter. The
press release is attached. The Company did not receive a copy of the press release until
Tuesday 2nd August after a request by our legal representative.
In summary, the MME has alleged that the Company has breached provisions of the Minerals
(Prospecting and Mining) Act, 1992 by exploring for uranium without legal rights to do so,
and undertaking a drilling programme for uranium without notifying the Mining Commissioner
of the MME as required by Section 53 of the Minerals (Prospecting and Mining) Act, 1992.
In accordance with the terms of EPLs 2805 – 2811, the Company is entitled to undertake
prospecting operations on its licences, and therefore may explore for the minerals to which
the licences relate. On 16 March 2005 the Company commenced an exploration programme
at Erongo.
On 11 March 2005, prior to the commencement of this exploration programme, the Company
advised the Mining Commissioner by facsimile of its intention to undertake a reverse
circulation drilling programme with the prescribed form and a covering letter. This
notification was provided in accordance with Section 53 of the Minerals (Prospecting and
Mining) Act, 1992. However, it is correct that this notification did not specify uranium as a
target – no specific minerals were identified as targets in the notification.
On 16 March 2005, prior to the start of the RC drill programme, the Company used a
geophysical technique of ground truthing radiometrics to delineate potential paleochannel
systems. Ground truthing radiometrics was determined as an appropriate mapping tool for
this purpose as the area being tested was within a known uranium enriched province and
paleochannel systems within the province were likely to contain some uranium mineralisation
which would act as an effective tracking mineral.
The results of the ground truthing radiometrics were significantly higher than expected, and
focused the Company's attention on uranium as a target in its own right. This led to:
- lodgement of applications for inclusion of uranium as a permitted target for
exploration on the Erongo licences – submitted 18 March 2005; and
- the Company’s ASX announcement of 18 March 2005 entitled “New Uranium
Discovery”.
Following this Company announcement, notification to the Mining Commissioner of the MME
of possible low grade uranium within EPL 2811 in accordance with Section 74 (read with
Section 41(1)(i)(i)) of the Minerals (Prospecting and Mining) Act, 1992 was given on 7 April
2005.
As to the statement in the press release that the discovery is not new, it is true that the
presence of radiometric anomalies and uranium in the Hakskeen area had previously been
identified, and then published by the Geological Survey of Namibia. As previously advised by
the Company, information it obtained from the Geological Survey of Namibia on the Hakskeen
area lacked the necessary detail to make it complete and sufficiently definite. The Company's
view is that information obtained in March 2005 significantly enhanced the prospectivity of
the area by validating historical airborne radiometric anomalies and identifying the location of
the enriched paleochannel systems.
The Company will seek an audience with the Minister of Mines & Energy to discuss these
issues at his earliest convenience.
Yours faithfully,
BRADLEY S MOORE
Chairman
Enquiries to:
Mr Bradley Moore
Chairman
Phone: +61 (0)8 9322 7822
Facsimile: +61 (0)8 9322 7823
This release accurately reflects information compiled by Mr G.R. Hemming, MAusIMM. MAIG , a Director of Roscoria Pty Ltd,
who is a competent person as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves and accurately reflects the information compiled by the competent person. Mr Hemming has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he
is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. Mr Hemming consents to the inclusion in the release of the matters
based on his information in the form and context in which it appears.