Nova Energy JV

In May 2009 Toro Energy Ltd (Toro) and DYL announced that they had entered into a JV whereby DYL, through its wholly-owned subsidiary RUN, would be entitled to earn a 65% share in three EPLs held by Toro’s Namibian subsidiary, Nova Energy (Namibia) (Pty) Ltd (Nova), by spending A$3.5 million over 2½ years.

In April 2011 RUN completed its earn-in requirement and now holds 65% with Toro retaining 25% and a Namibian company, Sixzone Investments (Pty) Ltd, holding a 10% share.  Earn-in programmes included acquisition of airborne geophysical data and an extensive RC drill programme on the Gawib EPL 3668, targetting deep palaeochannels west and south west of the Langer Heinrich Mine.  No significant uranium mineralisation was intersected.

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

RUN completed approximately 10,000 metres of RC drilling designed to test the ‘Alaskite style’ uranium potential of EPL 3669 and EPL 3670.

The drilling within EPL 3669 evaluated the western strike extension of uranium mineralisation reported by Extract Resources at the Pizarro prospect, along with other targets related to low magnetic responses contained within a stratigraphic and structural corridor.

All holes were gamma logged and anomalous zones assayed.  The drilling programme totalled of 59 holes for 9,569 metres.

• 41 RC holes were drilled for a total of 6,834 metres at the Natango Prospect ( EPL 3669); and

• 18 RC holes were drilled for a total of 2,735 metres at the Chungochoab Prospect (EPL 3670).

Natango Prospect Drill Results:  Overall the drilling was disappointing with only holes NTNR16 and NTNR37 returning uranium grades in the range of 150 to 400 ppm U₃O₈ typical of the Alaskites in the district.

Chungochoab Prospect Drill Results:  Mineralised intercepts were made in holes CHBR8 and CHBR9 however XRF analysis confirmed that the radioactivity present was due to Thorium.

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