Ewen (Slance, Conquest)

Ewen EPM 14916

In October 2008, DYL announced it had reached agreement with Matrix Metals Ltd (Matrix) to acquire 100% of the uranium rights to all of the NW Queensland JV tenements for $3 million. In November 2008 Matrix went into voluntary administration and its secured creditor appointed Receivers and Managers over its principal mining assets. DYL did not make the $3 million payment.

Following a tender process put in place by the Receivers and Managers of Matrix, DYL was the successful bidder to purchase 100% of the Ewen tenement EPM 14916, the Yamamilla tenement EPM 14281 and EPM 17000 application (part of Ewen) from the Receiver and Manager of Matrix for $1.4 million. Both of the granted tenements contain significant uranium mineralisation previously drilled by DYL. On completion of the sale, DYL will terminate the joint venture with Matrix and forego any rights it had over the other tenements in the JV.

Transfer documents have been sent to the Department and await the Ministers signature (consent to the transfer already received).

2008 RC Drill Programme

A number of significant intercepts were returned from the programme with the widths and grade of intersections at the Slance NE, Slance NW and Conquest Central Prospects justifying follow-up RC and diamond drilling in the 2009 field season. The Slance NW Prospect returned some significant ‘potentially economic’ intercepts over a 115 metre strike length to 150 metre vertical depth and the prospect remains open to depth and to the south along strike. The Slance NE Prospect is located 400 metre south and 250 metre east of Slance NW. The 2007 drilled Slance Prospect is a further 250 metre south of Slance NE giving a total prospect strike length of 650 metres that will require follow-up evaluation and drilling in 2009. Significant intercepts include:

Conquest Central