PANDURRA BLOCK – ELA 95/11, EL 4692 PANDURRA & EL 4708 KOOLCUTTA – SOUTH AUSTRALIA

The Company has the right to earn an 80% interest in these titles currently owned by Minotaur pursuant to the Tenement Purchase Agreement with Minotaur Operations Pty Limited.

The tenements are characterised by outcropping to near-outcropping Pandurra Formation on the edge of Gawler Range Volcanics with basement deepening to the east.

In 2010 the South Australian government flew several regional airborne electromagnetic (AEM) lines, three of which pass over the Yudnapinna, Koolcutta and Pandurra tenements as part of their Carieweloo Basin Unconformity Project. The project is ongoing and is attempting to capitalise on the similarities between the Cariewerloo Basin and the Athabasca Basin in Canada by using AEM to map potential unconformity related Uranium mineralization. These deposits are typically detected with EM due to the presence of graphite associated with the ore zone which is highly conductive.

EM test lines flown by the Department of Primary Industries and Resources of South Australia have successfully penetrated through to the basement rocks and generated several EM anomalies on the Pandurra Block. These EM anomalies are coincident with apparent basement structures revealed by gravity and magnetic surveys; basement structures being critical fluid pathways for unconformity-related U deposits.

The presence of a thick unit of Pandurra Formation within the Koolcutta, Yudnapinna and Pandurra tenements indicates this tenement package is suitable for hosting such deposits. Mineralisation here, would be expected to be found at the base of the Pandurra Formation along basement structures.

The Pandurra Block also lies within an iron-oxide copper-gold (IOCG) and U corridor of deposits that includes Olympic Dam and Prominent Hill (IOCGs), and the more recently discovered Mullaquana (U) and Hillside (Cu) deposits. Spencer Resources believes that further more detailed exploration is warranted in the north-west corner of the Pandurra Block evaluating and testing the potential for IOCG mineralizing systems.