Territory Phosphate Prospects

In August 2008 Aragon completed the acquisition of Territory Phosphate Pty Ltd (“Territory”). The key assets of Territory are three granted exploration licences and one exploration licence application which cover the Ammaroo and Lady Judith Phosphate Prospects in the southern Georgina Basin and western Wiso Basin, Northern Territory. Aragon has subsequently submitted an application over an area with similar phosphate potential referred to as the Barkly Phosphate Prospect. The tenements cover shelf facies phosphatic beds in Lower Cambrian sediments that border the Proterozoic Davenport Inlier. Substantive phosphatic sediments extend in a belt around the periphery of the Georgina Basin and are hosted in Lower to Middle Cambrian marine carbonate and clastic sediments including mudstones, claystones and limestone.).

Location map showing the Ammarro and Lady Judith and Barkly Phosphate Prospects

Ammaroo Phosphate Prospect

Excellent results of significant phosphate mineralization from shallow depths have been confirmed. The granted exploration licences are located within 165km of the existing Adelaide – Darwin Railway Line in the southern Georgina Basin, Northern Territory and total 3,765 km2.

The average depth to the top of the mineralisation in the core area is just 31.4m making it amenable to an open cut mining scenario. While at the current stage of exploration it is too early to report a mineral resource it is clear from the results to date that the area has the potential for a new large scale phosphate discovery.

Drillhole location over core area of significant phosphate mineralisation showing depth to mineralisation contours of 60m (red outline) and 40m (yellow outline).

An additional 17 drill holes have been completed along existing tracks in the greater area and are designed to identify regional trends as to the depth of the phosphatic beds. This drilling confirms the presence of extensive phosphatic beds over a very large area and shows that there is great potential to discover additional near surface phosphate mineralisation. Aragon will continue to evaluate this new data to assist in further exploration of the greater area while also focusing on advancing the newly discovered shallow phosphate deposit to a JORC compliant resource.

First pass aircore drillhole locations. Drillhole colour corresponds to the highest downhole P2O5 assay result. Analysis done by Australian Laboratory Services Pty Ltd using whole rock XRF method AME-XRF12.

Lady Judith Phosphate Prospect

Application ELA24994 is located approximately 280km west of the Alice Springs – Darwin railway line on the western edge of the Wiso Basin. Phosphate assays of up to 31% P2O5 over 6 metres have been reported. Water bore RN020989 located within the tenement has yielded an assay of 28.2% P2O5 over 3 metres from a depth of 15 metres and another interval of 2.2% P2O5 from 72 to 75 metres. The phosphatic intersection is in Hooker Formation mudstone and silty limestone.

Schematic west to east stratigraphic section across Wiso and Georgina basins showing the stratigraphic location of phosphate occurrences identified in a study conducted by the Northern Territory Geological Survey during 2004 and 2005.

Barkly Phosphate Prospect

The Barkly tenement application is nearby to the significant phosphate occurrences of Buchanan Dam and Alroy. The shelf facies phosphatic beds in Lower Cambrian sediments are interpreted to continue into the tenement and provide great potential for the discovery of additional shallow phosphate mineralisation at similar grades.