u stock to watch, page-8

One of the most ADVANCED uranium plays available - that's why it's worth holding - it is nearer to the holy grail that most others.

Just seems a lot of U3O8 players want to buy penny dreadfuls .......... but reports say this is a real deal company with U.

Read this ............. and like it!

Source: RCR Uranium Sector Review December 2006

Strategic Alliance with Denison Mines (TSX:DEN).
Bigrlyi JORC resource is 11.4mlbs U3O8 (500ppm cut off)
plus vanadium by-product. Gold equivalent 1.31Moz Au
grading 10.8gpt^.
EME Ngalia Region - potential to host significant uranium
and vanadium mineralisation - along a 200km strike. Drill
program (9,500m) currently underway.
Drilling at Anketell (WA) surficial calcrete 4Q06.
Rawlinson (WA): Rights (4Q06) to large, untested uranium anomalies - potential unconformity style targets.

Federal Government policy to grant leases for new
uranium mines in the NT.

Overview: Energy Metals listed on the ASX Sept. ‘05. It controls 8 uranium projects, 2 in the NT,
including Bigrlyi, 390km NW of Alice Springs which is the most advanced of EME's projects. The other 6
projects are in WA (100% EME) and 5 have historic mineralisation aggregating 13mlbs U3O8.

Bigrlyi: Uranium (and vanadium) mineralisation was discovered at Bigrlyi in 1973, following which 413
holes (37,500m) were drilled. The deposits are characterised as high grade containing vanadium, narrow
(3m to 5m width) and steeply dipping. The known mineralisation outcrops along a 14km strike, is open
along strike and at depth, and has potential to be mined by open cut followed by underground. The
majority of the current resource occurs at less than 100m depth.

Initial prefeasibility testwork indicates
metallurgical recoveries of 98% for U3O8 (acid leach) and 70% for vanadium, recoverable through the
uranium processing route.

EME aims to complete the current 9,500m drill program early 2007, where it is testing both strike and down dip extensions at Anomaly 15 and 2, and shallower targets outside the existing ore envelope at Anomaly 4 and 7.

Ngalia Region (100% EME): These tenements enclose the Bigrlyi, Malawiri (52% EME) and Walbiri
(42% EME) prospects containing uranium and vanadium mineralisation in modified roll-front style. EME
has applied for ten exploration licences, which enclose each of these prospects and untested uranium
anomalies, giving EME strategic regional control over a 200km strike.


Rawlinson (100% EME, option): (WA, 1450km2) Strong uranium channel anomalies likely associated
with mid Proterozoic metasediments prospective for unconformity, roll front and calcrete style uranium
mineralisation. The area is believed previously unexplored, contains untested outcropping uranium
mineralisation. Deal terms include issuing 2m EME shares and 1m options.

Anketell and Lake Mason: EME is targeting Yeelirrie style shallow calcrete-hosted uranium mineralisation and uraniferous channels at Anketell (10 km long, former work by WMC) and Lake Mason
(5 km long, former work by BP). A drill program at Lake Mason was completed 3Q06 confirming the
presence of calcrete uranium mineralisation. Drilling at Anketell is expected 4Q06.

Investment Comment: The JORC resource announced in July gives EME a sound base for expansion
and confirms a potentially economic grade vanadium resource at Bigrlyi. Work is underway to extend
mineralisation along strike and at depth and EME aims to complete a revised JORC 1Q07 and initial
scoping study 1Q07.

The project appears to have the conditions necessary potentially to make quick advancement - close to surface, good metallurgical recoveries, high grades with upside resource potential, an experienced management team and is in a favourable jurisdiction (NT).

There is significant potential for resource expansion in the Ngalia Region and high quality targets are currently being drilled.

Drilling at Anketell is also expected 4Q06. Strategic partner, Denison Mines, is acquiring International
Uranium (TSX.V:IUC) and OmegaCorp (ASX:OMC).





anyway - dyor