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1 ASX ANNOUNCEMENT Friday, 28 January 2011 Quarterly Activities Report December 2010 Completed purchase of U.S. high tech PFN logging company GAA Wireline commences work servicing the lucrative U.S. uranium industry. This purchase will help offset the revenue loss from GAA Wireline s Queensland logging operations due to the floods. Queensland logging operations were brought to a standstill in December, due to the floods, but normal logging operations continued elsewhere. Exploration commenced at Nabarlek in the Northern Territory tenements strategically located in world class uranium region and only 280 metres north of recent high grade uranium discovery. Stream sediment sampling results are currently being evaluated for uranium and REE s at Yambla/Harts Range in Northern Territory. Wet weather delays start of the diamond drilling program targeting previous high grade drill results at the Dome 5 ZincLeadSilver discovery in New South Wales. Successful capital raisings completed with A$5.24m in new capital Company name changed to UXA Resources Limited SUMMARY UXA Resources Limited (ASX: UXA) has finalised the purchase of a U.S. wireline logging business strengthening the company s borehole logging division and completes UXA s 100% ownership of PFN technology worldwide. The Australian division of UXA s borehole wireline logging service company, GAA, continued to experience difficult trading conditions with flooding in Queensland resulting in the postponement of all clients drilling programs in December. No GAA equipment or other assets have been damaged. At the Dome 5 Mississippi Valley Type ( MVT ) zincleadsilver discovery in New South Wales, where UXA has an option agreement with Teck Australia Pty Ltd, the company plans to follow up on previous drill intersections with a 6 diamond drill hole programme as soon as weather conditions permit.

2 In Northern Territory airborne geophysical surveys were completed over three exploration licences close to the old Nabarlek uranium mine in Arnhem Land. Initial field inspections were also completed at the Nabarlek North licence which lies only 280 metres North of the U40 Prospect where Uranium Equities Ltd recently announced drill intersection of high grade uranium, 6.71% U 3 O 8. A regional geochemical sampling program at the Yambla Harts Range project was also completed in November targeting potential drill targets for uranium and heavy rare earth elements (HREE) and results are currently being analysed. EXPLORATION UXA continued its exploration programme across its tenements in Northern Territory (Figure 1) and prepared for commencement of drilling at Dome 5 in New South Wales. Figure 1. UXA Tenement Location Map Dome 5 ZincLeadSilver, New South Wales UXA has commissioned a drill rig to commence an initial 6 hole diamond drilling program at the Dome 5 zincleadsilver prospect on the Mundi Plains in western New South Wales. The start of the drilling program has been progressively delayed by wet ground conditions both in the Broken

3 Hill area and in eastern Australia which has resulted in the postponement of scheduled drilling. UXA is currently monitoring improvements in these conditions on a daily basis and will commence drilling as soon as possible. The Dome 5 zinc discovery at Mundi Plains lies approximately 50km northwest of Broken Hill (Figure 1) and was made by Teck Australia Pty Ltd ( Teck ), a wholly owned subsidiary of the major Canadian mining company Teck Resources Limited, in joint venture with PlatSearch NL in The discovery was of Mississippi Valley Type ( MVT ) mineralisation in a flat lying zone at approximately 320meters depth. The mineralisation lies close to the base of the Adelaidean sedimentary sequences where they onlap onto a granite dome ( Dome 5 ). All of the 5 holes drilled within a one square kilometre area encountered sphaleritegalena mineralisation, with two high grade mineralised intersections returning up to 19.15%Zn, 4.9% Pb, 83pppm Ag. UXA has an option agreement to earn into Teck s joint venture interest (see 14 / 9/10 ASX release for terms of the agreement) and will commence an initial A$1.2M spend on exploration, targeting MVT style zincleadsilver mineralisation and IOCG style copper gold mineralisation. The Agreement with Teck was conditional on the partners entering into a Cover Rights Deed and Deed of Adherence within 45 days. These Agreements are in the final drafting stages and are now expected to be signed off in February The date for completion of these Agreements has been extended by mutual consent between the parties. Figure 2. Location of the Junction Dam and Mundi Plains Project

4 Northern Territory Nabarlek North (EL 24868) and Nabarlek West (EL and EL 28245) These recently granted tenements form part of UXA s joint venture with RIL Australia Pty Ltd ( RILA ), subsidiary of Reliance Industries Limited, a Fortune Global 500 company and India s largest private sector company. The tenements are located in close proximity to the old Nabarlek uranium mine in Arnhem Land and share similar geology. UXA has completed the flying of two airborne geophysical surveys over the tenement areas; an airborne magnetic and electromagnetic survey flown by Fugro; and a Hymap hyperspectral mineral mapping survey flown by Hyvista. The results of these surveys are currently being analysed and field follow up will commence at the start of the field season (MarchApril) in Reconnaissance mapping has been completed over Nabarlek North (EL 24868). This has included a field inspection of the South East corner of the tenement, close to the recent uranium discovery at U40 announced by Uranium Equities Ltd ( UEL ), which reported a high grade intercept up to 6.71% U 3 O 8 1. The U40 discovery lies approximately 280 metres South of UXA s Nabarlek North licence. The field inspection of this area has reported transported cover over bedrock with elevated scintillometer readings at surface (up to 300 counts per second over a background of 5060 counts per second). Follow up will include geophysical interpretation and drilling in the 2011 field season. Figure 3. Nabarlek exploration licences, Arnhem Land Northern Territory over geology and aeromagnetics (shadow) Pandanus West (ELA 24565) The Pandanus West tenement is part of UXA s joint venture with RILA and lies in the Westmorland uranium province near the border with Queensland. UXA has received the consent of the Traditional Owner s to conduct uranium exploration following a country meeting held at Borollola. 1 UEL ASX Release 16 December 2010

5 The agreement, on the terms of the exploration and mining agreement, has also been endorsed by the full Northern Land Council NLC. The final Federal and Northern Territory governmental licence approval process is expected to take approximately 4 5 months which, when completed, should allow UXA to commence exploration during the 2011 field season. This is the same procedure which UXA successfully completed leading to the grant of the Nabarlek tenements. Yambla & Harts Range U REE A regional drainage geochemical sampling program covering 3 of the 4 Harts Range tenements was completed in late November. A total of # stream sediment samples were collected and submitted to AMDEL for assay. Initial results were received in midjanuary 2011 and are currently being evaluated. Figure 4. Location of UXA s Yambla Project near Alice Springs NT. The Yambla/Harts Range project lies in the Harts Range, 140km East of Alice Springs, Northern Territory. At Yambla (EL 26142), UXA has rights to acquire a 75% interest in the project from Cullen Exploration (ASX announcement 14 April 2010). The three Harts Range EL s 27850, and are 100% held by UXA and cover a total area of 111km 2 located within the Entia Pegmatite Field, considered to be highly prospective for rare earth elements as well as uranium and

6 in particular much sought after HREE such as europium, terbium and dysprosium used in the manufacturing of permanent magnets and power generators. Uranium anomalism is also known from outcrops of pegmatite dykes where the presence of heavy rare earth elements (HREE) has been previously documented. At the SwallowHof prospect UXA has traced an outcropping zone of pegmatite dykes over a distance of 1.7km containing anomalous uranium and HREE. One sample from the pegmatite also returned 305 ppm Tantalum and 375 ppm Niobium which is considered highly anomalous. Anomalous assay results from rock chip sampling returning up to 13.8% U3O8, 35ppm Tb, 270ppm Dy, and 2900ppm Y from isolated samples (see September 2010 Quarterly Report for details). Western Australia Canning Basin UXA has assembled a package of five tenements covering two large airborne uranium radiometric anomalies emanating from outcropping Triassic and Jurassic sandstone units in the Canning Basin, 120km South East of Derby, Western Australia and close to a major sealed highway. This includes agreements with Rey Resources Ltd and Paul Askins concerning the Myroodah and Mudjalla uranium projects respectively (Figure 6). Negotiations have continued with the Kimberley Land Council over access agreements and whereas in principal agreement has been reached this has not been finalised. Discussions are also being held with the National Native Title Tribunal concerning the granting of several tenements in the Canning Basin (EA 04/2000, EA 04/2014). The next scheduled meeting is expected to take place in early March. Figure 5. Location of UXA s Canning Basin exploration projects BOREHOLE LOGGING BUSINESS GAA Wireline (GAA) GAA, which formerly operated as Geoscience Associates Australia Pty Ltd is now operating under the new name GAA Wireline and has relaunched its website as

7 The GAA borehole logging business was adversely impacted by extreme wet weather conditions throughout Eastern Australia during the. Regional flooding in Queensland s Bowen Basin over December has also resulted in the deferment of clients drilling programs. As such GAA s logging activities in the region were consequently postponed and this delay will have a significant impact on GAA s revenue for the six months since June GAA has diversified its jurisdiction of business activities away from Queensland through expanding the company s new Northseeking gyroscopic tool for clients with iron ore drilling projects in South Australia, New South Wales and provision of PFN and gamma logging services into the USA (see below). Purchase of US logging company specialising in PFN completed UXA completed the 100% acquisition of the business and assets of GeoInstruments Logging LLC (GIL) for US$1.875m and is now the sole owner of the U.S. based Prompt Fission Neutron (PFN) borehole logging technology specialising in uranium exploration. The company, now also operating as GAA Wireline, is providing PFN and gamma logging services to a number of clients in the Western United States and expects to commence a new contract with a major North American company for extensive use of this unique technology throughout its operations and projects. This purchase will also provide a new revenue stream of additional funds that will help offset the revenue loss from Queensland logging operations due to the floods. PFN Applications PFN technology directly measures the uranium content in boreholes by overcoming the problem of disequilibrium, unlike existing gamma logging tools which may limit or even mislead the interpretations of uranium concentrations. This technology is ideally suited to the growing low cost insitu uranium exploration and mining sectors. The major uranium regions in the Western United States, including the Colorado Plateau and Rocky Mountain & Intermontane Basin uranium provinces, contain a large number of operating uranium mines and prospective sandstone hosted uranium deposits which may suffer from disequilibrium issues that the PFN tool is designed to overcome. PFN also has the operational advantage of providing immediate uranium results, in the field, without having to wait for laboratory geochemical assay results. PFN technology is also used in mining development ahead of mining operations in Australia and the USA. In Australia, PFN technology played a significant role in the discoveries of two of Australia s largest uranium deposits, the Beverley mine and Four Mile deposits in South Australia.

8 Figure 6, GAA Wireline logging truck operating in Wyoming, USA, January CORPORATE Successful capital raisings in October and November concluded with a total of A$5.24 million raised. This included: 1. First and Second tranche placements A$960, Share Purchase Plan A$2,779, New Placement post AGM A$1,500,000 Between the three placements a total of 130,750,000 shares were issued at 4 cents bringing the total number of shares on issue to million. Following the passing of a resolution of shareholders at the Annual General Meeting the name of the company was changed from Uranium Exploration Australia Limited to UXA Resources Limited. The change is to reflect the broader range of activities the company is now engaged in including ownership of GAA Wireline and exploration for base metals as well as uranium. The Company s Annual General Meeting was held at the Amora Hotel, Jamison Street in Sydney on 18 November 2010 and all resolutions were passed by shareholders. JORC Compliance Statement Technical Information in this report is based on information compiled by Dr Russell Penney who is employed by UXA Resources Limited and who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Penney has sufficient exploration experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ( JORC 2004 ). Dr Penney consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

9 Appendix 5B Mining exploration entity ly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10. Name of entity UXA RESOURCES LTD ABN Quarter ended ( current ) DECEMBER 2010 Consolidated statement of cash flows Cash flows related to operating activities Current Year to date 6 months 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature (389) (593) (530) (830) received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) (503) (899) Net Operating Cash Flows (1,462) (2,213) Cash flows related to investing activities 1.8 Payment for purchases of: (a) US logging business (b) equity investments (c) other fixed assets (1,875) (1,875) 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (Joint Venture funding) (1,866) (1,676) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward) (3,328) (3,889)

10 1.13 Total operating and investing cash flows (brought forward) (3,328) (3,889) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 4,953 4, Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows 4,953 4,919 Net increase (decrease) in cash held 1,625 1, Cash at beginning of /year to date 2,005 2, Exchange rate adjustments to item Cash at end of 3,630 3,630 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current $A' Aggregate amount of payments to the parties included in item Aggregate amount of loans to the parties included in item Explanation necessary for an understanding of the transactions Non Executive Directors Fees and Managing Director s remuneration Noncash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows N/A 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest N/A Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used 3.1 Loan facilities 2,350 2, Credit standby arrangements

11 Estimated cash outflows for next 4.1 Exploration and evaluation Development 4.3 Production 4.4 Administration 480 Total 970 Reconciliation of cash Reconciliation of cash at the end of the (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current Previous 5.1 Cash on hand and at bank Deposits at call 3,172 1, Bank overdraft 5.4 Other (Term Deposit) Total: cash at end of (item 1.22) 145 3,630 2,005 Changes in interests in mining tenements 6.1 Interests in mining tenements relinquished, reduced or lapsed Tenement reference Nature of interest (note (2)) Interest at beginning of Interest at end of 6.2 Interests in mining tenements acquired or increased EL 3430 EL 3470 EL 3679 Transfer Transfer Transfer 51% 51% 51% 100% 100% 100%

12 Issued and quoted securities at end of current Description includes rate of interest and any redemption or conversion rights together with prices and dates. 7.1 Preference + securities (description) 7.2 Changes during (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions Ordinary securities 7.4 Changes during (a) Increases through issues (b) Decreases through returns of capital, buybacks Convertible debt securities (description) 7.6 Changes during (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and conversion factor) 7.8 Issued during 7.9 Exercised during 7.10 Expired during 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only) Total number Number quoted Issue price per security (see note 3) (cents) Amount paid up per security (see note 3) (cents) 313,200, ,200, ,997, ,997,500 4 cents 4 cents 505,000 9,500,000 2,780,000 3,240,000 Exercise price 17 cents 20 cents 20 cents 20 cents Expiry date 30 Jun Dec Feb June 2013

13 Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4). 2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed. Sign here:... Date: 28 January 2011 Company secretary Print name: Graham Seppelt Notes 1 The ly report provides a basis for informing the market how the entity s activities have been financed for the past and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.