Redport Limited A.C.N. 061 559 840 Redport Limited A.C.N. 061 559 840. Level 1, 8 Windmill Street, Millers Point, NSW 2000, Australia 15 September 2005 Company Announcements Office Australian Stock Exchange Limited REDPORT LIMITED (ASX CODE: RPT) REDPORT TO START DRILLING AT LAKE MAITLAND URANIUM PROJECT Highlights • Drilling to commence by the end of September • The focus will be on defining the nature of the high grade core of the deposit • A 6,000 metre aircore drilling program will define better the basal contacts of mineralisation • Drilling will also outline the extent of lower grade zones • Uranium prices reach 25 year high Redport Limited (“Redport”) (ASX code: RPT) is pleased to announce that a 6,000 metre aircore drilling program has been devised to commence at the Lake Maitland Uranium Project by the end of September. Redport is one of the few ASX listed companies with a uranium resource which complies with JORC standards. The current resource at Lake Maitland has been estimated at 7,863 tonnes U3O8 (uranium oxide), equivalent to over 1 million ounces of gold. The resource is based on extensive drilling and excavation of 17 ten metre long trenches during the 1970’s enabling an estimation of uranium resources to be calculated to JORC standard. Redport is earning an 80% interest in the project and currently holds a 30% interest. Richard Homsany, Chariman said, “Redport will be the first company in many years to commence a concerted drilling programme on a major uranium deposit in West Australia. A successful campaign will enable Redport to commence a pre-feasibility report immediately for mine development.” The Uranium price has hit a 25 year high at US$30 per pound in September rising from US$24 in April 2005. With a strong uranium price, the commencement of drilling will place Redport in a strong position to take advantage of buoyant uranium prices. A number of factors support analysts’ views of a continued strength in the uranium market: - sustained high oil prices increasing the attractiveness of alternative energy sources - China and India switching to nuclear power with China planning to quadruple nuclear capacity by 2020 - issues of global warming and greenhouse gas emissions - supply constraints resulting from industry consolidation in the 1990’s and scheduled mine closures - low inventories and reduction in supply from recycling of weapons grade material Page 1 of 4 Redport Limited A.C.N. 061 559 840 Lake Maitland Uranium Project The Lake Maitland Uranium Project is located in one of Western Australia’s major gold mining regions and is situated approximately 130 kilometres south east of Wiluna, Western Australia. The primary objective of the current drilling programme is to define further and validate the nature of the high grade core which will form the basis of a pre-feasibility study. The opportunity to mine this higher grade core at the commencement of mining operations would give a substantial early revenue flow and is therefore a significant driver in the economics of the deposit. The unique feature of this deposit is the shallow nature of the ore body which is no more than 5 metres below the surface. The drilling will also serve to upgrade the high grade core resource to the Indicated Resources category or better. Secondary objectives include: • defining the lateral limits of the lower grade mineralisation; and • defining more accurately the basal contact of mineralisation in areas where previous down-hole natural gamma logging was curtailed by sediment partially filling the hole (logging was carried out after the holes had been drilled). Uranium mine development at Lake Maitland requires regulatory reform and Redport receiving all necessary approvals to commence the mining. Details of the Drilling Programme To achieve Redport’s objectives, a 6,000 metre aircore drilling program has been devised and a drilling contractor has been engaged to undertake this work. The program is designed to ensure that high quality samples can be collected in their entirety over half metre intervals. To-date the deposit has been delineated by 100 metre spaced holes along east-west lines 400 metres apart and by 17 ten metre long trenches. The top surface of the mineralised zone is typically between 1.5 and 2 metres below surface and is never deeper than 5.1 metres below the surface. The mineralisation averages 1.5 metres thick and varies up to a maximum of 3.75 metres thick. The mineralised body is simple in morphology and can be readily correlated between sections. In plan the deposit varies from 300 metres to a maximum of 1,500 metres wide in an east-west direction and extends continuously for about 6 kilometres north-south. Lower grade, discontinuous mineralisation extends westerly into both the north and the south arms of the lake. It is planned to drill holes to a depth of 9 metres. The holes will be cased with 80 millimetre diameter plastic pipe and capped to ensure that access through the entire mineralised zone will be maintained for some years to come. This will allow not only immediate estimation of grade by down-hole natural gamma logging but will also allow later checking of the natural gamma logging as well as by other down-hole geophysical logging (for example, spectrometer, density and neutron fission techniques). Drill holes in this program will be 50 metres apart on infill lines, which will bring the nominal drill line spacing down to 200 metres. The plus 600 drill hole programme is anticipated to be completed in the fourth quarter of 2005. Drill cuttings will be collected over half metre intervals and will be stored on-site until the natural gamma down-hole logging has been interpreted. Representative samples will then be sent for uranium assay, as a cross-check of the uranium grade estimated by radiometric logging, and for other elements including vanadium. Assays will include elements which will help determine the metallurgical characteristics of the uranium-vanadium mineralisation. Vanadium, which has increased 16 fold since 2002 (now around $22/pound) would be a valuable by product from any mining operation. Vanadium is associated with the sole uranium mineral at Lake Maitland which is carnotite (a uranyl vanadate). Once all data are collected and analysed an updated resource estimate will be undertaken. Redport Limited A.C.N. 061 559 840. Level 1, 8 Windmill Street, Millers Point, NSW 2000, Australia Page 2 of 4 Redport Limited A.C.N. 061 559 840 Acquisitions and Investments Redport is continuing to examine a number of opportunities with the prime focus on uranium. Opportunities are being presented to Redport and reviewed to determine acquisitions and investments which have the potential to create shareholder value and grow the company. The company is also examining proposals to unlock the value of the company’s numerous mineral projects in Western Australia and South Australia. About Redport Redport is an Australian Stock Exchange listed company involved in the mineral resource sector with a focus on building its uranium resource base. The company currently holds projects in Western Australia, South Australia and holds a royalty to the Langer Heinrich Uranium Project in Namibia which is expected to be in production in 2006. Redport has significant interests in Australian uranium and gold deposits with defined resources. Redport’s strong emphasis is on uranium and has access to leading uranium geologists with proven track records in developing and acquiring uranium projects. For further Information please contact: Richard Homsany, Redport Limited Tel (02) 9375 0576 Kevin Kartun, RADAR Investor Relations Tel (02) 8256 3310 Redport website: www.redport.com Redport Limited A.C.N. 061 559 840. Level 1, 8 Windmill Street, Millers Point, NSW 2000, Australia Page 3 of 4 Redport Limited A.C.N. 061 559 840 Summary of current Resource Estimate - Lake Maitland Deposit Lower Cutoff Grade & (ppm U3O8) Category Quantity (tonnes @ 1.7 t/cu m) Average Grade (ppm U3O8) Contained U3O8 (tonnes) 500 Indicated 3,191,000 705 2,250 Inferred 3,932,000 704 2,766 Total 7,123,000 704 5,016 200 Indicated 4,865,000 593 2,886 Inferred 10,303,000 483 4,977 Total 15,168,000 518 7,863 The information in this report that relates to Exploration Results or Mineral Resources is based on information complied by Allen J Maynard who is a member of The Australian Institute of Geoscientists. Mr Maynard has sufficient experience to qualify as a Competent Person for the purposes of the 2005 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Maynard is an independent consultant to Redport and he consents to the inclusion in the report of the matters based on their information in the form and context in which they appear. Redport Limited A.C.N. 061 559 840. Level 1, 8 Windmill Street, Millers Point, NSW 2000, Australia Page 4 of 4
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