SXR Southern Cross Resources Inc Deposit Evaluation PFN

SXR Southern Cross Resources Inc Deposit Evaluation PFN Technology: “Prompt Fission Neutron” SXR Southern Cross Resources Inc

PFN: Disequilibrium Problem SXR Southern Cross Resources Inc Gamma is the traditional tool used to measure e. U 3 O 8 grade g and evaluate resources… Gamma Ray Intensity 214 Bi 238 U 214 Pb …but in some Roll-front deposits uranium is not in equilibrium with its daughters as they are too young.

PFN: Schematic Gamma Response SXR Southern Cross Resources Inc Hole 1 Hole 2 Hole 3 Hole 4 Overlying Clay Oxidised Aquifer Tails Uranium Ore Nose Reduced Aquifer Basement Clay Gamma Response

PFN: Schematic PFN Response SXR Southern Cross Resources Inc Hole 1 Hole 2 No PFN response in low grade tails as daughters only Hole 3 Hole 4 PFN response directly measures 235 U concentrated in high grade nose

PFN: What is PFN Technology? SXR Southern Cross Resources Inc Down Hole Probe Pulsed Neutron Source Drill Hole

PFN: Neutron Generator Tube SXR Southern Cross Resources Inc • High voltage accelerates deuterium (2 H) ions into a tritium (3 H) target 2 H • + 3 H n + 4 He (En = 14. 2 Me. V) Pulses at 1000 cycles per second & emits ~108 neutrons per second

PFN: What is PFN Technology SXR Southern Cross Resources Inc Down Hole Probe 14 Me. V Neutron Flux Epithermal Neutron Pulsed Neutron Source To Thermal Neutron (by Collision with rock) Thermal Neutrons Induce Slow Fission of Natural 235 U in rocks 2 Me. V Prompt Neutrons emitted from 235 U fission Epithermal & Thermal Neutron Detectors Ratio gives %235 U Drill Hole

PFN Results SXR Southern Cross Resources Inc Thermal Neutron Flux 3. 52 U 3 O 8 lbs/ft 3 1. 48 U 3 O 8 lbs/ft 3 Epithermal Neutron Flux 0. 27 U 3 O 8 lbs/ft 3 • Ratio of Epithermal to Thermal Neutrons is Directly Proportional to • Only • Deposits considered in Isotopic Equilibrium 235 U is Fissionable in the Natural Environment 0. 72% 235 U 99. 27% 238 U 235 U

SXR Southern Cross Resources Inc PFN: Calibration

SXR Southern Cross Resources Inc PFN Calibration Results

SXR Wireline Log Output Southern Cross Resources Inc Induction & Guard - Define lithology by measuring porosity using EM and Electrical methods. Similar to SP / Resistivity but better suited to highly saline conditions e. U 3 O 8 (Black) - Calculated from calibrated natural gamma using a number of factors) Natural Gamma p. U 3 O 8 (Red) - Direct measure of U 235 insitu using ration of epithermal to thermal neutrons – PFN - Total count natural gamma radiation measured by up to three scintillometers with varying Na. I crystals sizes

PFN: Advantages SXR Southern Cross Resources Inc • Crucial for most Tertiary Uranium deposits as they are young and suffer extreme disequilibrium • Uses a safe neutron generator rather than a radioactive source • Produces an accurate direct measurement of insitu uranium over narrow intervals • Results are instantaneous • Measures a large sample volume (500 mm sphere) • Obviates the need to drill core • Can be used during ISL mining to quantify recovery • Exploration tool – disequilibrium vector towards mineralisation Colin Skidmore (October 2005) cskidmore@sxru. com