toolebuc formation, page-4

TOOLEBUC FORMATION - Other Companies

SOUTHERN URANIUM - Southern Uranium made uncontested applications for six Exploration Permits for Minerals
(EPMs) covering 650 square kilometres in the Boulia and Cloncurry districts of northwest Queensland. The applications cover areas of Toolebuc Formation on the rim of the Mesozoic Eromanga Basin. The Toolebuc Formation contains pyritic black shales and oil shales that
offer potential traps for roll front uranium deposits. Grant of the EPMs is anticipated within nine months.

SOUVEREIGN METALS LTD - The Company has recently completed an initial air core drilling program at the Undina
South Project 35kms to the east of Cloncurry. The drilling program has demonstrated that the outcropping Toolebuc Limestone on EPM 12458 is host to widespread, shallow vanadium and molybdenum mineralisation. An airborne radiometric survey flown in the 1990’s returned a low order anomaly in the uranium channel where the Toolebuc limestone outcrops over a 1.7km by 1.1km area within Sovereign’s EPM 12458. The Toolebuc limestone is an early Cretaceous sediment that outcrops on the margins of the Eromanga and Carpentaria basins.

Based on the assay information received, Sovereign believes the Undina South Project has potential to host large volumes of near surface mineralisation containing significant quantities of Vanadium Pentoxide, Molybdenum Tri-oxide and minor Uranium Oxide.

DEEP YELLOW - Strong uranium radiometric anomalies also occur in the Toolebuc Formation of Cretaceous age. This
formation occurs to the north-east, east and south-east of the Mount Isa Inlier and in places contains vanadium bearing oil shale (e.g. Julia Creek). During uplift and weathering, uranium is likely to have migrated from enriched basement rocks by oxygenated groundwater and to become fixed when coming in contact with the overlying reducing Toolebuc formation. Uranium commonly migrates to the surface and often forms large expanses of low-grade enrichment which is associated with receptive compounds such as calcareous, carbonaceous and phosphatic
material in the soil profile over particular sedimentary units. The phenomenon is shown very clearly in the Prospector district where some units of the Mt Isa Group and Surprise Creek Formation are effectively mapped by Surface uranium.

EXCO and PARADGIM METALS (PDM) recently announced a joint initiative to explore for uranium and other commodities
within the Toolebuc limestone formation on both companies' permits, east of Cloncurry.