ASX Announcement/Media Release
30 August 2010 $5 million Farm-In and Joint Venture with Uranium Equities Limited to Fund Cauldrons West Lake Frome Uranium Project, SA HIGHLIGHTS - Cauldron Energy Limited and Uranium Equities Limited entered into a Farm-in and Joint Venture agreement, whereby UEQ can earn an 80% interest in Cauldron Energys West Lake Frome Uranium Project. - UEQ to fund $5 M of exploration expenditure over five years to earn an 80% interest in the West Lake Frome Project. - UEQ to expend a minimum $0.7M commitment, including 4,000 metres rotary mud drilling before withdrawing. Australian uranium exploration company Cauldron Energy Limited (ASX: CXU) ("Cauldron" or "the Company") has entered into a Farm-in and Joint Venture agreement with Uranium Equities Limited (ASX: UEQ) whereby UEL will fund A$5 million of exploration expenditure at Cauldrons West Lake Frome Uranium Project in South Australia. Under the terms of the agreement, UEQ can earn an 80% interest in the West Lake Frome Project by funding A$5 million of exploration expenditure over (5) five years.

UEQ to fund A$0.7 million before UEQ can withdraw from the joint venture, including a minimum 4,000 metres of rotary mud drilling. The West Lake Frome Project comprises three granted exploration licences, EL 3388, EL 3392 and EL 3410, covering 1,444 km2 in the Curnamona Province of South Australia, host to the world class uranium deposits at Beverley and Beverley Four Mile. The project is located south of the Companys Marree Uranium Project JV, a fully funded $6.2 Million joint venture with a Korean Government consortium comprising Korea Resources Corporation, Daewoo International Corporation and LG International Corporation. The three granted exploration licences comprising the West Lake Frome Project are subject to an application for a two-year extension with Primary Industries and Resources SA.

Successful renewal is a pre-condition of the agreement. Recent drilling at the Marree Project identified a two kilometre-long, northeast trending zone of uranium mineralisation, between 400-800 metres wide, associated with an interpreted redox front within the Eyre Formation. Significant results from this area include 0.60m at 180 ppm eU3O8, up to a peak of 245 ppm, within broad zones (up to 20m) of anomalous uranium. West Lake Frome Project The West Lake Frome Project is located between the eastern escarpment of the Flinders Ranges and the western edge of Lake Frome, with the uranium--rich source rocks of the Mount Painter Inlier to the north and the uraniferous Willyama Complex to the south. The project lies along the Arrowie-Paralana Fault system which defines the western boundary of the Frome Embayment.

This regional fault system is thought to be associated with the significant uranium mineralisation at the Beverley Four Mile deposit, 40 km to the north. Interpretation of radiometric and geophysical data suggests that uranium is being shed into the West Lake Frome Project from the adjacent North Flinders Ranges and potentially from subsurface granitoids of the Bimbowrie suite.

Previous drilling is very sparse but indicates the presence of Namba and Eyre formations, host to the Beverley, Beverley 4 Mile, Goulds Dam and Honeymoon uranium deposits.

Exploration completed by Cauldron has included an Airborne Tempest EM survey covering two areas of the West Lake Frome Project.

The 1,050 line kilometre survey identified a strongly conductive sediment package intersected by basement fault structures as well as indicating the presence of near surface palaeo-drainages. Analysis of historical drilling records, including oil exploration hole Moorowie1, indicates that Tertiary sediments of the Namba and Eyre Formations correlate to the areas of higher conductivity observable in the EM sections.

These areas are interpreted to indicate porous sands units within the Namba and Eyre Formation.

These sand units provide a drilling target for uranium mineralisation and occur at depths between 50 to 230 metres. To view the full ASX Announcement click here.http://esp.gewru.com/download/files/12414/1235156/Cauldron%20Energy%20Farm%20in%20and%20JV%20with%20Uranium%20equitites%20Ltd%20300810.pdf For further information contact: Terry Topping / Brett Smith Cauldron Energy Limited Ph: (08) 9211 5777 David Tasker/ Karen Oswald Professional Public Relations Ph: (08) 9388 0944 Email:
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