During the last two years Compass has focused a considerable amount of exploration effort to assess the uranium potential of the Batchelor area. The original mines of the historical Rum Jungle Uranium Field fall within exploration tenements granted to Compass and are in close proximity to and sometimes overlap Compass' base and specialty metal resources. These mines confirm that commercial quantities and grades of uranium occur and clearly demonstrate the prospectivity of the region.

The geological setting is similar to the Alligator River Uranium Field in the Northern Territory (containing the Ranger Mine and the Jabiluka and Koongarra uranium deposits). The area also has similarities to the Athabasca Uranium province in Canada which contains the extremely rich McArthur River, Rabbit Lake and other unconformity related uranium deposits. The strengthening demand for uranium with the associated rising price, and projected demand for the metal, continues to encourage the Company to continue to aggressively explore for uranium.

Initial drill programmes have quickly delineated a preliminary resource of 14.5 million pounds U3O8 at Mt. Fitch. The discovery of new prospects north of Mt. Fitch and at Browns East, plus uranium intercepts at previously identified prospects neglected since the 1970's, highlight the potential to promptly add additional uranium resources to the current inventory..

Mt Fitch Uranium

A large proportion of the uranium mineralisation at Mt. Fitch is hosted in dolomitic rocks, varying from massive dolomite and shales and dolomite/shale breccias with varying percentages of shale fragments.

Drilling is continuing at the prospect during 2007 to seek extensions to, and better define the the resource. A revised resource calculation will be performed following completion of the 2007 drilling program.

Kylie Prospect

The Kylie Prospect is located in a complex structural setting on the southern side of the Archaean Waterhouse Complex.

It has geological features similar to those at the major uranium deposits in the Alligator River area.

Only 2 holes were completed in 2006 and this confirmed the presence of uranium mineralisation with anomalous gold values.

A significant drill programme is required in this area as compilation of existing data shows the prospective structural setting continues well to the southeast of this prospect has received only limited exploration.

Rum Jungle Creek South

This was the richest and largest producing uranium mine of the Rum Jungle Field and is located immediately south of the area where five RC drill holes were completed in 2006.

The purpose of the drilling was to determine if mineralisation of the same type continued into this area.

Assay results were lower than expected, possibly due to an increase in the degree of oxidation present.

This could have resulted in the reduction of grades due to leaching. Additional exploration is planned for 2007, targeting more reduced facies rocks and deeper targets.