Linia Prava Uranium - KYRGZYSTAN

Overview

Nimrodel Resources completed the acquisition of 100% of Linia Prava Uranium (LPU) on the 17 July 2007.

LPU is a "Joint Stock Company" registered in Kyrgzystan which currently holds a:

100% interest in a 70 km² Gold Exploration License located in the gold-rich Chatkal region of Western Kyrgyzstan

90% interest in four granted Exploration Licenses covering an area in excess of 1,900 square kilometers in the southern Fergana Valley located in the south western region of Kyrgyzstan.

The company has been actively exploring since 2005 and has a fully operational office in the capital city of Bishkek with 18 staff including geologists, field support staff, logistics and office personnel.

Gold Projects

The Company has embarked on a strategy to review both brownfields gold projects as well as highly prospective exploration areas in a number of regions in Kyrgyzstan with the aim of acquiring a balanced portfolio of gold projects. The granting of the 70 km² Tyuz-Ashuiskaya Exploration Licence in January 2009 represents the first such acquisition by the Company.

The Tyuz-Ashuiskaya Licence, which is located in the gold-rich Chatkal region of Western Kyrgyzstan , is an under-explored area which includes the Saraysay-Tyllyaberdy gold deposit - a 7.5 kilometre long zone of surface gold mineralisation with historical surface trenches reporting high grade gold up to 8 metres at 9.8g/t.

Based on historical information including extensive surface trenching results, the Company considers that there is potential to define substantial gold resources of over 500,000oz of high-grade gold at grades in excess of 5g/t Au.

The surface gold mineralisation was discovered by the USSR in the late 1950's but, despite sporadic exploration, there has been no drilling of the mineralisation to date. Exploration has been limited to surface trenching with a total of 43 trenches completed over a 7.5 kilometre strike length. Assay results from this trenching have shown the mineralisation to be relatively consistent, with grades ranging from 0.15g/t Au up to 22g/t Au over widths from 0.3m up to 8.0m.

The Company has continued a program of trench sampling to evaluate the surface mineralisation identified on the western limb of the Saraysay Anticline. 18 trenches have been excavated to date with sample results which include:

Trench 10 - 13 metres at 6.3 g/t Au, Including 1 metre at 51.5 g/t Au

Trench 13: 2 metres at 17.1 g/t Au

Trench 18: 5 metres at 17.3 g/t Au, Including 1 metre at 32.8 g/t Au

The Company has now identified a significant zone of surface gold mineralisation over at least 1.2 kilometres and the mineralisation remains open along strike to the north and south. Results of all the trench samples completed to date are shown on the attached map. The mineralisation is associated with a shallow west dipping limestone horizon which varies in thickness from 1 to 13 metres. Drilling to test the down dip continuity of the mineralisation is commencing in Q4 2009 and will initially focus on the wider high grade zones below trenches 10 and 18. The initial drilling will plan to test the mineralisation to a depth of 60 metres. There has been no historical drilling at Tyuz-Ash.

In addition to the trench sampling a total of 902 stream sediment samples were collected during the 2009 field season covering approximately 90% of the licence area. Preliminary results have identified a number of surface gold anomalies with values up to 2.5g/t Au.

The mineralisation is considered to be skarn-type, which is one of the most common styles of mineralisation known in this region. The Chatkal region and its extension into Uzbekistan hosts a number of very large gold deposits and porphyry systems, including:

Almalyk (Uzbek) - 72Moz gold and 2Mt copper;

Kockbulak (Uzbek) - 4Moz gold;

Jeeroy (Kyrgyz) 3Moz gold;

Chaarat (Kyrgyz) 3.2Moz gold.

All of these deposits are located within 200km of Nimrodel's Tyuz-Ashuiskaya Project.

Uranium Projects

The Batken Oblast Uranium Project in Southern Kyrgyz covers 1,946 km² and encompasses a highly prospective area with geology similar to that of the Mailuu-Suu Uranium Mine, which historically produced approximately 10,000 tonnes of high-grade uranium. The leases are in the Fergana Basin, within 10km of an existing uranium plant at Hojent in Tajikistan and within 45-100kms of former Soviet uranium mines, including Mailuu-Suu and Tuya Muyun.

Sedimentary rocks in the Fergana Valley are host to significant uranium deposits of "sandstone-style" or "roll-front" uranium deposits. Uranium from these deposits is considered to have been shed from primary uranium occurrences in the Alay mountain range immediately south of the LPU project areas.

The region has a rich uranium exploration history, commencing with high quality geological mapping which began in 1930's, followed by the identification of uranium mineralization throughout the Batken Oblast both visually and by ground radiometric surveys by the Soviets in the 1940's and 1950's. The ground radiometric data was augmented by regional airborne radiometric surveys in 1973 which covered 2,315 km², including the area now covered by LPU's Saryadirskaya license and the eastern portions of the Kozubaglanskaya license.

During the Cold War, the Fergana Valley became a focus for uranium exploration and mining. The Mailuu-Suu deposit in the north-east of the valley was mined from 1946 to 1967, providing the earliest source of uranium to the Soviet nuclear program. The existing uranium plant at Hojent in Tajikistan is less than 10km from the LPU leases.

The project areas were the subject of historic uranium exploration up until the 1970's, and are known to contain numerous radiometric anomalies based on regional airborne radiometric surveys undertaken by Soviet geologists at that time.

In addition to airborne radiometric data, work conducted to date on the license areas by LPU and the former Soviet geologists includes radiometer spot checks of uranium anomalies followed up by water, soil, and rock geochemical sampling. This has been supported by trenching, pitting and adits within some target areas. This work has confirmed the existence of uranium mineralization in a number of localities.

Having completed a significant 20,000 line km radiometric and magnetic air survey program in December 2007, Nimrodel identified 29 high priority targets to be defined for an extensive ground survey in 2008-2009. The ground survey, as well as comprehensive geological mapping and an IP survey program of the highest priority radiometric anomalies, has continued. Utilising this information together with seismic data obtained via a data sharing agreement, a targeted drilling program is required

The Kan Lead - Zinc Project

In addition to the Tenements being prospective for uranium mineralization, the Shunksaiskaya ("Sh") licence area contains the Kan lead and zinc deposit. The Kan deposit was mined from 1946 through to its closure in 1973. An initial IP test sequence was carried out in 2008. This will be followed up with an IP exploration program to investigate and establish a geological model to optimise the mineralisation extraction.

The Future

Nimrodel's Kyrgyz leases provide Nimrodel shareholders with strategic investments in highly prospective exploration leases in Gold and Uranium. Our fully operational Kyrgyz company has the skills to efficiently develop our current licences and also target the further acquisition of carefully selected assets.

The Directors of Nimrodel are confident that these strategies have the potential to transform the value of shareholders' interests.