Yarrabubba and Quinns Lake Projects: Uranium

These two projects comprise adjacent tenement holdings with different ownership structures, and with common exploration potential for deposits of nickel-copper-PGM's and uranium oxide. The projects are 600 kilometres north-north east of Perth in the Archaean Yilgarn Craton of Western Australia, about 70 kilometres from the mining centre of Meekatharra.

The projects are prospective for Sudbury-style World Class nickel-copper-PGM deposits and contain part of the Nowthanna calcrete-hosted uranium oxide deposit.

The Quinns Lake (Impact 100%) and Yarrabubba (Impact 20%) Uranium and Nickel Projects, Western Australia

The Quinns Lake and Yarrabubba projects are located 70 km south east of Meekatharra in Western Australia and comprise adjacent tenement holdings under different ownership structures with common exploration potential for deposits of calcrete-hosted uranium oxide and Sudbury-style nickel-copper-PGE.

Nowthanna Uranium Deposit (Impact 40% beneficial interest)

The Nowthanna calcrete-hosted uranium deposit in part straddles the Quinns Lake Project and the Yarrabubba Project tenements. Impact has a beneficial interest in about 40% of the Inferred Resource of uranium oxide resource (JORC 2004) within the Nowthanna deposit, totaling 3.9 Mt at an average grade of 450 ppm (200 ppm cutoff), for 1,800 t of contained uranium oxide.

In September 2008 a new Liberal-National Government was elected in Western Australia resulting in an improved attitude towards uranium mining. As a result of these encouraging circumstances Impact will continue to vigorously pursue options for the on-going exploration and development of the Nowthanna uranium deposit near Meekatharra.

Impact is particularly encouraged by the progress of Mega Uranium Limited at the Lake Maitland Uranium Deposit about 250 kilometres to the east of Nowthanna. In early 2009 a consortium of Japanese nuclear power production companies purchased a 35% interest in the Lake Maitland project for US$49 million tied to a Life-of-Project off-take agreement and project finance assistance. The deposit is geologically similar to the Nowthanna uranium deposit.

The Indicated plus Inferred Resources for the Lake Maitland and Nowthanna deposits (at the same cut-off grade) are compared below:

* Impact Minerals 40% share = 4 million pounds