BRR - Straight from the source

PRESENTATION BY GEOFF EUPENE AND BOB CLEARY, CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF CROSSLAND URANIUM MINES LIMITED (CUX)

“Crossland’s Projects and Prospects”

http://www.brr.com.au/event/52265

WEDNESDAY, OCTOBER 15, 2008, 9:30 AM.

            BRR    Good morning and welcome to Boardroom Radio’s Uranium eConference. Joining us today are Geoff Eupene and Bob Cleary, CEO and Chairman at

10                    Crossland Uranium Mines. Today they’ll be presenting on the mining activities at Crossland. Good morning, Geoff and Bob, thanks for your time.

            CUX     Good morning, Tom.

15        CUX     Good morning, Tom. Tom, we’d like to just lead off in terms of a very brief overview of the markets to uranium. Everyone would be well aware that things have softened quite a bit with the current commodity drop and the financial crisis, seeing spot price down to 49 and long term price 75. It’s a bit of a shock to the system but to be expected in the current turmoil in the world

20                    markets. But the spot is… the fundamentals that drive uranium into the spotlight in the last couple of years have stayed strong. As we’ve mentioned there that we still are short in terms of prime production and what’s being consumed by power, the (inaudible) 00:01:09) around the world. The new production coming on, a lot of it, is low grade and does require a strong price

25                    above US$60 a pound to make those projects economic and the drivers for greenhouse is still strong worldwide, bring nuclear right back into the focus. There are some uncertainties still hanging out with supply from Cameco, the biggest supplier in the western markets. All these things say and we still feel uranium is a strong place to be in the years to come.

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                        Moving on to looking at what makes up Crossland as a company, what we’ve tried and I think achieved doing, in terms of putting together the people who have the experience and knowledge of uranium, those that brought the funding to us and give us opportunities to acquire tenements in the right

35                    places, that is get the right projects.

                        If you look at the next slide very briefly, myself and Geoff’s long term uranium meant with a lot of experience in Northern Australia. We’ve got (inaudible) (00:02:35) team. Dave Mosher, now based up in Toronto in Canada, brings

40                    the experience he has in the industry. Peter Walker, in terms of the legal that always complicated with uranium. Bob Richardson, in terms of an expertise in the geophysics area which helps us pinpoint what we have on the projects, on the leases we have. Our most recent acquisition or addition to the team, Paul Melville, again a very experienced uranium geologist who had just come

45                    across to us and heading up our field team from Cameco.

                        Just to roundup that picture, in terms of on our next slide, the partners... we’re very early in the piece apart from Canada through what’s listed on the Toronto Exchange’s Pancon Uranium. They contributed $8 million to earn 50% of our projects. This really helped with the funding, that’s $8 million into the ground which really strengthened our balance sheet considerably.

                        We also set up a joint venture to explore internationally for uranium and that’s

5                      termed Crosscontinental uranium, that’s a 50-50 joint venture. We focused initially on Burkina Faso. We have a number of very prospective tenements in that part of the world and we’ve recently formed a bind with Southern Cross uranium to explore on some of the tenements that they had previously been granted in Burkina Faso that gives a very strong position in that part of the

10                    world and quite prospects for Crosscontinental uranium going forward.

            CUX     On that Bob, we’re actually expecting to start our initial airborne survey in Burkina Faso before the end of this month, October. Just to go on to discuss our projects in a little more detail, Crossland actually has 8 project areas, 5 of

15                    which are for uranium. Most of these are in North Australia and they cover 12,000-odd sq km of which we have 19 in granted titles out of a total of 25. Four of the projects of the uranium in South Australia in the Northern Territory, which are part of the joint venture with Pancon, and there’s another project for base metals and uranium in the Kimberley which is also in joint

20                    venture with Pancon. The remaining projects, diamonds projects, and they’re all in the Northern Territory.

                        Moving on, we look at the map that shows the location of the Crossland Creek project in the Kimberly, the Chilling project in the north of the Northern

25                    Territory, Charley Creek in Central Australia, and our Kalabity Project in South Australia.

                        We move on again to discuss the Chilling Uranium Project which we believe is our flagship. It’s just south of Darwin in the top end. We believe the

30                    geologies are there, reflects a setting that could be the mirror image of the east side of the Pine Creek Basin and we cover 130 km of links of the Lower Proterozoic-Middle Proterozoic unconformity which is perspective for Ranger, Koongarra, Nabarlek-type mineralisation. We’ve got 1,271 granted sq km and granted titles there and this is a large consolidated area which enables us to

35                    develop systematic exploration plans and it contains several known uranium prospects.

                        We move on to the next slide. This illustrates our land holding versus the Jabiluka, Koongarra, Ranger Corridor on the east side of the basins. Similar

40                    setting involved in both cases.

                        Moving on again to discuss our explorations status, as we speak, we’re drilling at the March Fly prospect at Mt. Thomas, we’re actually on our third hole there, and we’re splitting preparing that coal for assaying. We’re also in

45                    the process of following up the 40-odd anomalies that we got from our radiometric survey earlier this year. Many of those have never been systematically tested before and we believe we’ll have some more drill targets emerge from those as well. We’re also participating in the detailed airborne EM survey over the same stone cover which is sponsored by Geoscience Australia and that’s now well underway.

            CUX     We head further south and to our Central Australia Charley Creek project.

5                      This is the project that we’re interested in long term and very glad we could get hold of this land. It was known for some time from earlier drilling back several decades ago that there were radioactive granites in the area known as Teapot Granite. We’ll just talk a little bit later about the interest we have in that granite itself as a target. Originally, we were expecting to find secondary

10                    uranium that had drained off that granite into these that reflect sand covered plains adjacent to the range. We’re still very, very excited about what we’ve seen in the initial assessment of that drainage area, but even more so, going back over the granite area, do you want to elaborate a bit on that Geoff?

15        CUX     Thanks Bob, moving on to the next slide which shows the geological setting of our titles in the Charley Creek Project area. the pink-colored rocks are the Teapot Granite which we know is a strong uranium source rock, and the red arrows on that map indicate the proposed migration of uranium from the Teapot into the pale-colored sandy sediments that fill the valleys in the

20                    vicinity. We’ve already completed some test lines of drilling earlier this year and we’re still assessing that but some of those holes went as deep as 130 m and we believe there’s sufficient sediment accumulation there to host significant mineralisation. The airborne EM survey we did of the area has given us good information on where the channels that might contain the

25                    uranium lie and we’ll be doing further drilling to follow that up.

                        Moving on to the next slide which shows the results of the airborne EM work and the postulated migration channels ways based on real information, that’s shown in white on the right hand side of the slide. On the left, you can see

30                    quite clearly the strong response of the Teapot Granite. This is uranium channel radiometrics and the lighter the colour, the stronger the response. So the Teapot is clearly quite uraniferous. We think early this year being able to access the granite terrain and start to follow up some of those anomalies there and we announced not that long ago the initial results of that work

35                    where we’ve obtained volumes of up to 2,530 ppm uranium from initial outcrop sampling in the area. The result of that as shown on the next slide. We intend to seek the necessary clearances to start drilling in the Teapot Granite area as soon as possible

40                    Moving on again to Kalabity. Bob, do you want to say a few words about that Kalabity?

            CUX     Kalabity is an area that we added to our portfolio to make sure we have work for our geologists during the wet season where we’re… give us access to our

45                    tenements in the north, but selected… we knew there was uranium mineralisation in the area but if you look at the map you can see we’re surrounded by projects like the Radium Hill Mine that was one of Australia’s first uranium production areas that to the northeast we got the Honeymoon deposit, and over to the west we got the Crocker Well and (inaudible) (00:13:49). We’re essentially surrounded by a lot of the Pepinnini project areas. We knew of anomaly of.... named KR4, that was within the lease area but Geoff might want to talk a bit about what our works found on those leases in relation to KR4 and other areas of interest. Thanks Geoff.

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            CUX     Thanks, Bob. Moving on to the next slide, we’ve actually completed some great intensive auger drilling programs now to Bedrock which is quite easy to achieve in this terrain, so we’ve actually got Bedrock samples and being able to probe the holes with spectrometers as well. That’s a very effective and

10                    rapid exploration tool for uranium. You can see from the map that we display in this slide the response at KR4 in detail. We believe that this is less than we would hope for and we’ve been lucky enough with the follow up of our airborne radiometrics to locate the Tabita prospect, which has responded far more favourably to our exploration. You’ll see in the inset there the results of

15                    our drilling earlier this year where we’ve achieved results of up to 230-odd parts to a million uranium and that’s starting to cost there into quite significant  pulse of radioactivity and we’ll be following this up with some deeper drilling in the coming summer months.

20        CUX     Moving across now in the Western Australia, an area that we and the many others have renewed interest following a change of government and change of sentiment towards uranium mining, Geoff. Initially this is the target we thought was a copper target as we’re going after structure initially and interest in… lot to talk about what our actual airborne work has shown up in that area,

25                    Geoff?

            CUX     Thanks, Bob. Yes, we’ve got actually two target areas there now. We have the Crossland Creek project, the area itself, and then about 40 km to the south, the Gibb South project, both of which we’ve now completed

30                    radiometric survey of.

                        At Crossland Creek which is shown in the next slide, you can…the various radiometric responses are distinguished by different colours, red being potassium, green being thorium, and blue being uranium. As you can see in

35                    the southeast corner of the slide of the main illustration, there’s a quite a strong response from uranium and we know that this is associated with a magnetic linear which heads out to the west. We actually have a target concept to drill for the unconformity of the base of the King Leopold sandstone looking for the possible source of a uranium leakage anomaly that

40                    we think these things...the blue expression that surface now represent. We think that’s quite an exciting prospect. Some work to be done on approvals that there, etc., yet but we would have to be drilling it some time next dry season.

45                    Moving on to the next slide, we have the recently acquired results from Gibb South and again, the colour scheme is the same with the blue representing uranium. Clearly we can see the several strong blue responses there which are uranium channel responses. We’ve only received this result within the last few weeks and we’re yet to follow that up.

                        Okay, we’ll that finishes our round up on our Australian Uranium Properties and I’ll pass it back to you, Bob.

5          CUX     Just to wrap up on Crossland, Geoff, the next slide shows in brief detail the company’s game plan which was to build in conjunction with Pancon a strong uranium mining company. We are well funded, as I’ve said, we’ve got our own funding which we’ve used a small amount of that this point of time. We’re well placed with the funding of over $12 million still available to us where both

10                    exploration and acquiring other tenements that we think are really we’re having. We have the experience and the team as to where to look for and what to try and peg. We’ve not really kicking (inaudible) (00:19:50), we’re going after a concept. Many of these projects haven’t been tested previously and we got a strong Australian focus initially through the uranium friendly

15                    Northern Territory of South Australia but now is just (inaudible) (00:20:09) into Western Australia as well. Some of the other targets we picked up on structure we think not interesting from a uranium point of view and our plan is at the right time to spin those off into another listed company. We do have our low project acquisition cost. So when things do turn up, and I really strongly

20                    believe we will turn up something of real interest, is a great upside for shareholders in being by the Crossland.

                        Shareholding.... just to wrap up in the last slide to show what the situation is for Crossland. Thank you very much for listening.

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            BRR    Geoff and Bob, thanks for your presentation today. Listeners those were Geoff Eupene and Bob Cleary, CEO and Chairman at Crossland Uranium Mines presenting as part of the Boardroom Radio’s eConference on uranium. If you have any questions for Geoff and Bob or you’d like more information

30                    about this eConference, please email brr@brr.com.au. Thanks for listening to Boardroom Radio.

PRESENTATION CONCLUDED

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