Nova Energy JV - June 2010

Toro Energy Limited (Toro) and DYL announced on 28 May 2009 that they had entered into a JV whereby DYL, through their wholly owned Namibian subsidiary Reptile, will spend A$3.5 million over the next two and a half years on three EPLs held by Toro’s Namibian subsidiary Nova. Reptile will then be entitled to earn a 65% share of the Joint Venture. Toro will retain 25% with Namibian BEE Company, Sixzone Investments Proprietary Limited, holding a 10% share.

Although Nova’s EPLs do not contain any known uranium prospects, their location immediately adjacent to Reptile’s uranium tenements (see Figure 1) and to other significant uranium projects and mines make them very prospective for alaskite, magnetite-skarn and secondary palaeochannel uranium mineralisation, namely:

EPL 3668 lies immediately downstream of the operating Langer Heinrich Uranium mine with the potential for the discovery of a similar style mineralisation. Exploration will focus on fully evaluating the buried palaeochannels within this tenement.
EPL 3669 is located immediately south of where Bannerman Resources are exploring uranium rich granites known as Alaskites at their Etango Project. There is also potential for uranium mineralisation associated with magnetite-skarn mineralisation similar to the INCA Project discovery announced by DYL.
EPL 3670 is in the southern part of the Erongo district adjacent to the Aussinanis calcrete deposit being explored by DYL. The tenement has similar radiometric anomalies that could be evaluated with shallow drilling as well as buried Alaskite potential.

Mr Leevi Shigwedha - Sixzone, Mr Todd Alder - Nova, Mr Lamek Indongo - Sixzone, Mr Martin Kavanagh - Reptile, Mr Mark McGeough - Nova, Dr Leon Pretorius – Reptile and Mr Mateus Kaholongo - Sixzone

Reptile entered into an agreement with Geotech Airborne Limited to undertake a helicopter-borne electromagnetic, radiometric and magnetic geophysical survey for approximately 6,087 line-kilometre over the two western EPLs (3669 and 3670). The survey areas are mostly sand covered and the survey is primarily aimed at ‘mapping out’ prospective lithologies and conductive zones similar to those hosting the INCA uraniferous magnetite discovery made by Reptile and to the stratigraphy hosting Extract Resources’ Rossing South discovery further to the north.

Survey data and preliminary interpretation by Geotech has now been received and assessed.

Figure 1: Locality map showing Reptile’s four EPLs and projects, the three Nova JV EPLs plus uranium mines and projects held by other companies in the area

Reptile Uranium Namibia (Proprietary) Limited (RUN), has applied for renewals of the three Exclusive Exploration Licences (EPLs 3668, 3669 and 3670) to the Ministry for Mines and Energy on behalf of Nova Energy (Namibia) Pty Ltd (Nova) and Sixzone Investments (Pty) Ltd. Reptile is still awaiting grant of these tenements due to a backlog of applications at the Ministry.

Palaeochannel Drilling EPL 3668

Drilling managed by Reptile is being undertaken along the northern boundary of EPL 3668 immediately to the southwest of the Langer Heinrich Mine and also on EPL 3669. A total of 15,118 metre was drilled in 249 holes has been drilled to date. Selected drill results are shown in Table 1 and Table 2 for each EPL and locations shown on Figure 2.

Table 1: Selected Drill Results from Exploration Drilling on EPL 3668 in Namibia

Drillhole	mE	mN	Azi	Dip	TD	From (m)	To (m)	Interval (m)	eU₃O₈	GTM
NOVR348	518251	7475644	0	-90	97	82	91	9	182	1,638
						77	79	2	100	200
NOVR316	518324	7475646	0	-90	97	63	70	7	190	1,330
NOVR374	516400	7475650	0	-90	91	71	78	7	154	1,078
NOVR420	520300	7477000	0	-90	88	54	57	3	217	651
NOVR321	518299	7475646	0	-90	97	90	92	2	257	514

Note: GTM is calculated by multiplying the Internal x eU₃O₈ or cU₃O₈ (ppm)

Table 2: Selected Drill Result from Exploration Drilling on EPL 3669 in Namibia

Drillhole

Azi

Dip

From

(m)

Interval

(m)

eU₃O₈

GTM

NTNR4

478900

7483400

-90

124

326

522