announcement out - highlights

New High Grade Uranium Zone Discovered at Yanrey in Western Australia
HIGHLIGHTS
? 5,000m drilling program commenced at the Yanrey Uranium Project in Western Australia
? First hole of program discovers a new shallow mineralised palaeochannel, returning preliminary field results1 of:
? 2.7m @ 1,021 ppm eU3O8 from 40.6m
? Peak result of 2,267 ppm eU3O8
? New channel significantly shallower than main resource area and will provide addition to the Bennett Well resource
? Result underpins the potential of the area, which includes an exploration target2 of:
? 25M - 35M lbs eU3O8 at between 300-900 ppm eU3O8; with
? Numerous palaeochannels identified yet to be drill tested
? Drilling to continue until mid-November, with results presented to the market as they become available
? In tandem with this drilling, Cauldron is accelerating exploration activities at its new base metal discovery in South Australia

Australian diversified exploration company Cauldron Energy Limited (ASX: CXU) (“Cauldron” or “the Company”) is pleased to announce that a recently commenced 5,000 metre rotary-mud drilling program at the Yanrey Uranium Project in Western Australia has commenced, delivering immediate success.

This drilling program focussed in the Bennet Well east area (BWE - Figure 2) within the Yanrey Uranium Project and proposed to test for potential extensions to the Bennet Well deposit and explore other identified palaeochannels within the project.

The first hole in this program intersected strong uranium mineralisation at between 40.6 and 43.3 metres below surface. The preliminary field result of a wireline gamma probe of this hole has confirmed an intersection of 2.7m @ 1,021 ppm eU3O8 from 40.6m, with a peak result of 2,267 ppm eU3O8.

This intersection is in a new area, close to the Bennet Well resource, but at approximately 20 to 30 metres above the depth at which the resource sits.