Market Cap
A$14.0m ($0.15 p/s)
Issued Capital
93,403,328
Directors
Peter Unsworth
Chairman
Michael Jones
Managing Director
Rodney Fripp
Executive Director
Paul Ingram
Non-Executive Director
Mark Pitts
Company Secretary
www.impactminerals.com.au
309 Newcastle Street
Northbridge
Western Australia 6003
tel +61 (8) 6454 6666
fax +61 (8) 6454 6667
email

JUNE 2009 QUARTERLY REPORT
SUMMARY
Corporate and Business Development
• Placement to Polo Resources Limited to raise $3 million completed.
• Cash position at date of this report $4.1 million.
Uranium
• Quinns Lake Project (WA, Impact 100%): Discussions continue to
progress the exploration and development of the Nowthanna
uranium deposit;
• Yarrabubba JV Project (WA, Impact 20%): Interpretation of regional
soil geochemistry programme of 4,200 samples completed with
numerous areas for follow up work identified; and
• Botswana (Africa, Impact 100%): Planning of exploration
programme to test several high priority targets in progress.
Nickel - PGE
• Strategic Alliance with Impala Platinum Limited: Reconnaissance
field checking and rock chip sampling of a group of targets
completed; and
• Yarrabubba Nickel JV Project (WA, Impact 20%): Interpretation of
regional soil geochemistry programme of 4,200 samples completed.
Six priority targets identified for follow up work;
Gold
• Drummond Basin Projects (QLD): Discussions with potential JV
partners continuing.

Exploration programmes to further test and rank
the many targets being planned.
1.

Placement to Polo Resources Plc
On June 5th Impact announced that the Company had reached agreement to place 18,668,326
new shares at an issue price of 16.07 cents per share, raising $3 million, to Polo Resources
Limited, an AIM-listed mining and investment company (AIM code: PRL).

The placement
was made in two stages: an issue of 11.15 million new shares raising $1.791 million pursuant
to Listing Rule 7.1, and the balance of 7,518,326 shares to raise $1,208,195 was approved by
shareholders at a general meeting held on 20th July 2009.

The shares issued rank equally
with all current shares on issue.

Polo Resources now holds a 19.9% equity interest in Impact.
Polo"s primary focus is investment in, or acquisition and development of, advanced stage
uranium mining projects.

It currently has an investment portfolio of uranium and coal
interests, and 50% of a joint venture with Peabody Energy Corporation, formed to hold all of
Polo"s coal and uranium assets in Mongolia.
During 2009, Polo has acquired interests in Berkeley Resources Limited, a leading uranium
explorer doing feasibility work on the Salamanca deposit in Spain; Extract Resources
Limited, operator of the large Rossing South project in Namibia; A-Cap Resources, currently
doing feasibility work on the Letlhakane uranium project in Botswana, and Uranex NL,
operator of the Bahi Project in Tanzania and the Thatcher Soak project in Western Australia.
Polo"s Executive Chairman, Mr Stephen R Dattels and Mr Neil Herbert, Managing Director,
were both UraMin Inc directors who negotiated the sale of UraMin to Areva in July 2007 for
US$2.5 billion.

The flagship deposit of the UraMin assets was the world class Trekkopje
calcrete-hosted uranium deposit in Namibia.
Mr Paul Ingram, Chief Executive Officer Australia for Polo Resources was appointed to the
Board of Impact on July 17th.
This new funding will be used to rapidly accelerate Impact"s exploration programmes, in
particular on its Botswana uranium project.

Considerable time was spent at the end of the
Quarter designing the new work programmes and initiating the logistics for the field
activities.
2.

Quinns Lake (Impact 100%) and Yarrabubba (Impact 20%)
Uranium and Nickel Projects, Western Australia
The Quinns Lake (E51/1075) and Yarrabubba Projects (E51/1072-1073, E20/563-567) are
located 70 km south east of Meekatharra in Western Australia and comprise adjacent
tenement holdings with different ownership structures and with common exploration
potential for deposits of calcrete-hosted uranium oxide and Sudbury-style World Class
nickel-copper-PGE deposits.

The Nowthanna calcrete-hosted uranium deposit occurs in part
in both the Quinns Lake Project and in the Yarrabubba Project which is in Joint Venture with
CITIC Nickel Australia Pty Ltd, part of the CITIC Group (60%), as well as a syndicate of
investors (20%).
Impact Minerals owns approximately 40% of the Inferred Resource of uranium oxide within
the Nowthanna deposit (JORC 2004).

At a cut-off grade of 200 ppm uranium oxide Impact"s
40% share of the deposit is about 3.92 Mt at an average grade of 450 ppm, for a contained
1,800 t or 4 million pounds of uranium oxide.
The Quinns Lake-Yarrabubba area has most of the geological characteristics of the World
Class Sudbury nickel mining camp in Canada.

An extremely large sub-circular magnetic low
in regional magnetic data and outcrops with distinctive geological structures are interpreted
to be the signature of a structure caused by a major meteorite impact.

It is generally accepted
that such an impact occurred at Sudbury and that this gave rise to the many large nickelcopper-
PGM deposits in that area.
Uranium Exploration
During the Quarter Impact continued to lead discussions with the other part-owners of the
Nowthanna Uranium Deposit with a view to progressing the project, including a possible
consolidation of the ownership and a possible scoping study to investigate the option of a
mobile or central processing plant.
Uranium and Nickel Exploration on the Yarrabubba Project (Impact 20%)
MMI Soil Geochemistry Survey
During the Quarter interpretation of the regional MMI soil sampling program of about 4,200
samples that covered about 80% of the licence areas of E51/1073 and E20/563 to 20/567 was
completed.

The MMI technique permits testing of both the uranium and nickel potential of
the ground as well as other commodity metals that could be present in the large
hydrothermal alteration system identified in the airborne magnetic data.
A total of 12 areas of interest, including 5 of high priority, have been identified for further
nickel exploration.

In addition five areas for follow up work for uranium exploration have
been identified.

The results are being assessed by the other parties to the Joint Venture with a
view to planning follow up exploration programmes..
3.

Botswana Uranium Project (Impact 100%)
The Botswana Uranium Project comprises approximately 25,000 sq km of Prospecting
Licences that cover about 350 km of the strike extensions of rocks that host uranium deposits
at Letlhakane where ACAP Resources Ltd has the Letlhakane uranium project containing
three deposits hosted both by near surface calcrete and by Karoo Group sedimentary rocks.
ACAP have reported a combined inferred resource of 98 million lbs of U3O8 at an average
grade of 158 ppm at a cut-off grade of 100 ppm.

ACAP recently announced they are
commencing a Bankable Feasibility Study for the project.
Impact"s licences are variably prospective for three types of uranium deposits:
• deposits hosted by Karoo sedimentary rocks and which host uranium deposits in
many places in southern Africa;
• uranium hosted by calcrete in Cainozoic palaeochannels, a style of mineralisation
well known in Australia and Namibia.

In Botswana the palaeochannels form part of
the Kalahari Group sediments that are extensive within the Impact licences; and
• areas of salt lakes which, in Australia, are known to host uranium deposits,
including the Nowthanna deposit near Meekatharra that is 40% owned by Impact.
During the Quarter the project was being reviewed by other companies with a view to a
farm-in arrangement.

Arising out of this, Polo Resources plc expressed an interest in the
project and subsequently that company elected to take a placement in Impact (as described
elsewhere in this report) in order to further the exploration effort in this very large tenement
package.
The Company is in the process of planning a significant exploration programme for the
project during the second half of 2009, focussing on the top five or six more advanced target
areas.

These top ranked projects will be taken to drill status as soon as possible.
4.

Strategic Alliance with Impala Platinum Limited to Explore for and
Develop Nickel-PGE Deposits in Southern Africa
In mid-2008 the Company entered into a Strategic Alliance to explore for and develop
deposits containing nickel and platinum group metals (PGM"s) in southern Africa with
Impala Platinum Limited, the World"s second largest platinum producer.
The Alliance will operate for a minimum period of two years and Impala Platinum will fund
project generation work by Impact up to US$400,000 per year and in return will have the first
right to earn equity in any projects identified.

Projects in which Impala Platinum elects to
earn an interest will require a minimum expenditure by Impala of US$1 million before
withdrawal, and a further US$1 million expenditure to earn 50%.

Any projects which Impala
Platinum does not elect to progress with can be retained 100% by Impact.
During the Quarter reconnaissance field work was completed on a large number of areas of
interest in one of the countries included in the Alliance.

Rock chip samples were taken at
most of these and are being assayed and examined for their geological characteristics.

Future
work programmes will be decided when these results are available.
5.

Gold Exploration in Queensland (Impact 100%)
Impact owns 100% of eight exploration licences in the Drummond Basin called Drummond
East (EPMs 14927-929), Drummond West (EPMs 14932-934) and Clermont (EPMs 14116-117).
The Drummond Basin is one of Australia"s most prospective areas for Large and World Class
epithermal vein and stockwork style gold deposits and for bulk-tonnage disseminated gold
and gold-copper deposits.

It contains the four million ounce Vera-Nancy-Pajingo active
mining centre as well as dormant mines at Twin Hills, Yandan, Mt.

Coolon and Wirralie.
Major target generation exercises have been completed over the project areas.

All previous
exploration results were synthesised, together with conceptual models for epithermal gold
and porphyry-style copper-gold-molybdenum mineralisation.
More than 60 targets have been identified, of which 18 are ranked as high priority and 25 are
for porphyry systems.
Discussions with a number of parties, with a view to a Joint Venture on the projects, are in
progress.
6.

Corporate and Business Development
The Company continued to review the Direct Shipping haematite Ore (DSO) and magnetite
iron ore projects in Australia that have been identified as having significant merit.
Dr Michael G Jones
Managing Director
The review of exploration activities and results contained in this report is based on information
compiled by Dr Mike Jones, a Member of the Australian Institute of Geoscientists.

He is a director of
the company and works full time for Impact Minerals Limited.

He has sufficient experience which is
relevant to the style of mineralisation and types of deposits under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of
the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (the
JORC Code).

Mike Jones has consented to the inclusion in the report of the matters based on his
information in the form and context in which it appears.