eve announcement out - uranium exploration agreeme

25 October 2005
Manager Announcements
Company Announcements Office
Australian Stock Exchange Limited
10th Floor, 20 Bond Street
SYDNEY NSW 2000
via electronic lodgement
Energy Ventures to invest in further uranium prospects in Zambia through Exploration Agreement
with Albidon
Highlights
�� Agreement reached with Albidon Limited to earn an interest in uranium and coal prospects located
in the highly prospective Karoo Basin uranium province of Southern Zambia.
�� Prospects include known uranium mineralisation defined by drilling in the 1970’s.
�� The Karoo Basin is host to a number of high-grade uranium deposits in the same geological setting
as the project areas, including Paladin’s Kyelekera project to the north in Malawi.
�� EVE may earn up to a 70% interest in properties through completion of a Prefeasibility Study.
�� Major geophysical and drilling programs planned over the next 6 months.
The Company is pleased to announce that it has entered into an agreement for the exploration and
development of a number of uranium, coal and coal-bed methane prospects that have been identified on
tenements held by Albidon Limited in Zambia.
Under the agreement, the Company will undertake a A$500,000 exploration program over the next two
years and have an option to enter a Joint Venture with Albidon on one or more project areas. Energy
Ventures may earn a 30% interest in each project area selected by it for farm-in by expending A$1 million
on the selected project area, and may then proceed to earn a 70% interest by completing a Prefeasibility
Study on a JORC Indicated Resource.
The agreement is subject to completion taking place of the acquisition of all the issued capital in African
Energy Resources Pty Ltd (African Energy) as detailed in the announcement to the market on 28 July 2005.
Background
The prospects comprise a number of occurrences of coal and uranium mineralisation within sediments of
the Karoo Basin, which is the host sequence for several uranium deposits in southern Africa such as
~ 2 ~
Kyelekera in Malawi. The prospects were identified during uranium exploration of the Kariba Valley in the
1970’s and 1980’s and there has been no follow up exploration in the past few decades.
Under the cooperation agreement African Energy will be responsible for all management of the exploration
programs and Albidon will assist with support and logistics within Zambia.
Details of the Agreement
• Energy Ventures must expend a minimum of A$500,000 on exploration of the specified projects during
an Evaluation Phase that expires in two years.
• This expenditure will secure for Energy Ventures the exclusive right to enter farm-in agreements on
one or more projects under pre-agreed terms as set out below.
• Energy Ventures may select the areas it wishes to farm-into within two years. Each project area
selected requires a separate farm-in agreement. The following terms apply to each farm-in agreement:
�� Energy Ventures must expend at least A$300,000 per annum.
�� Energy Ventures may sole-fund A$1 million of project expenditure to earn a 30% interest in the
project. Energy Ventures’ expenditure during the Evaluation Phase on the areas the subject of the
farm-in will be credited towards this.
�� Energy Ventures may earn a 70% project interest by sole-funding exploration and development
expenditure by drilling up an Indicated Mineral Resource as defined in the JORC Code and
completing a Prefeasibility Study.
�� Thereafter Albidon may elect to contribute 30% of project funding.
�� In the event Albidon elects not to participate at a 30% interest, Energy Ventures’s interest will
increase to 80% in return for committing to a Bankable Feasibility Study and sole-funding the first
A$10 million of the study.
�� Albidon may then elect to fund its 20% share of further project costs; or may require Energy
Ventures to fund Albidon’s share of project costs in return for an additional 5% interest (leaving
Albidon with 15% carried into production); or alternatively Albidon may elect to convert its interest
to an agreed Net Smelter Return (‘NSR’) (for example 1 to 3% sliding scale in the case of
uranium).
Brett Mitchell
Company Secretary
If you have any queries please contact Energy Ventures’ Company Secretary, Brett Mitchell, on +61 8
9324 1177

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