Marenica Energy : Quarterly Activities Report - 31st December 2018

29 January 2019
About Marenica Energy
 Marenica Energy Limited (ASX:
MEY) is a minerals exploration
company holding a portfolio of
mineral tenements in Namibia.	The Company finalised a capital raising of $1.18
		
million to fund exploration activities and provide
	 Marenica is actively looking to
increase its tenement holdings.	working capital.
 U-pgradeTM is Marenica's	Cash at Bank $1.4 million.
		
patented beneficiation process
which has the potential to	The Company is now debt free.
		
significantly improve the value of
	Deep Yellow's Tumas channel likely to extend into
secondary uranium deposits.		
Marenica's tenement applications.
Investment Summary	Mile 72 - Environmental clearance received - drilling
		
planned to commence during the March quarter.
	 75% interest in the Marenica
Uranium Project in Namibia.	The Company applied for additional tenements
		
prospective for uranium mineralisation in Namibia.
Discussions continue on projects for acquisition or
	


72

•  100% interest in Mile Uranium Project in Namibia.

•  100% interest in U-pgradeTM Process.

Uranium

Contact

Murray Hill

Managing Director & CEO T: [phone]

E:[e-mail]

Quarterly Activities Report for the period ending 31 December 2018

Highlights

application of U-pgradeTM, or both.

Discussions continue to incorporate U-pgradeTM in third party development and production projects.

Marenica Energy Limited │7 Conlon Street, Waterford WA 6152 │[phone] │www.marenicaenergy.com.au

Project Locations

Additional Tenement Applications

The Company believes the four tenement applications lodged last year, covering the area south of the Swakop River in Namibia, to be prospective for calcrete hosted uranium mineralisation. To add to this area, Marenica lodged an additional two EPL applications covering areas east of Tumas and southeast of Langer Heinrich.

•  EPL 7435 (Skilderkop) is located southeast of Langer Heinrich

•  EPL 7436 (Amichab) is located east of Tumas

Marenica notes that during the quarter, Deep Yellow Limited ("DYL") (ASX: DYL) released positive drilling results at its Tumas Deposit (EPL 3497) in Namibia. The DYL announcements highlighted eastern extensions to the recently discovered Tumas East channel on DYL's EPL 3497, with the most eastern line of drilling within 100 metres of the eastern boundary of DYL's tenement. Marenica's tenement application EPL 6987 adjoins the eastern boundary of EPL 3497 along a 17.5 km length, and Marenica's EPL 7279 extends that area further to the east (see Figure 2).

The Tumas channel flows from east to west, with the source of the secondary uranium deposited in the channel likely to be originating from the mountains to the east. Marenica's EPL applications are upstream of the Tumas deposit, with the uranium having likely flowed through the area covered by Marenica's EPL applications.

Figure 2

Location of EPL Applications Relative to Tumas Channel

Marenica considers all of its EPL applications to be prospective for calcrete hosted uranium and is ready to commence an immediate exploration program should the EPL's be granted. Marenica has previously confirmed the application of its patented U-pgradeTM beneficiation process to the Tumas deposit and is highly confident that U-pgradeTM could be applied to any uranium mineralisation identified on these application areas.

All EPL applications are currently undergoing due process with the Ministry of Mines and Energy in Namibia.

Marenica continues to investigate areas in Namibia prospective for uranium mineralisation.

Mile 72 Project

During the quarter, Marenica received environmental clearance on the Mile 72 Project, and plans to commence an exploration program in the first quarter of 2019.

Marenica has identified, from historical maps, areas prospective for uranium mineralisation near Mile 72, and lodged two EPL applications covering the area.

Application of the U-pgradeTM Beneficiation Process

Discussions continued with Paladin Energy Limited ("Paladin") on the application of U-pgradeTM to the Langer Heinrich Uranium mine in Namibia. Both parties have publicly acknowledged the potential benefit of U-pgradeTM to Langer Heinrich and Marenica looks forward to assisting with the reduction of operating costs at the processing facility.

Marenica continues in various stages of discussion with a number of resource owners regarding the benefits of U-pgradeTM to their projects. Marenica also continues to investigate projects either for acquisition or application of U-pgradeTM.

Tenement Schedule

Namibia

Number	Name	Company	Interest	Area (km²)
MDRL 3287 EPL 3308 EPLA 6987 EPLA 6988 EPLA 7278 EPLA 7279 EPLA 7368 EPLA 7435 EPLA 7436 EPLA 7507 EPLA 7508	Marenica Mile 72 Koppies 650 West Hirabeb Ganab Trekkopje East Skilderkop Amichab Autseib Capri	Marenica Minerals (Pty) Ltd Metals Namibia (Pty) Ltd Manmar Investments One Eight Two (Pty) Ltd Manmar Investments One Eight Two (Pty) Ltd Marenica Ventures (Pty) Ltd Marenica Ventures (Pty) Ltd Marenica Ventures (Pty) Ltd Marenica Ventures (Pty) Ltd Marenica Ventures (Pty) Ltd Marenica Ventures (Pty) Ltd Marenica Ventures (Pty) Ltd	75% 100% 95% 95% 95% 95% 95% 95% 95% 95% 95%	321 20 49 379 730 199 17 190 251 688 987

"EPLA" denotes an EPL application

Placement and Debt

During the quarter, Marenica finalised a capital raising to raise a total of $1,178,000, before costs.

During the quarter, Marenica eliminated debt of $1.65 million and is now debt free.

Expenditure

The Group incurred exploration expenditure of $33,765 during the quarter.