Mr. Jeremy Caddy reports

ALDERSHOT AQUIRES URANIUM INTERESTS IN USA

Aldershot Resources Ltd. has entered into an agreement with Royal Resources Limited of Perth, Western Australia, and its wholly owned Colorado subsidiary, Royal USA Inc., pursuant to which the company has agreed to acquire all of the shares of Royal USA in consideration of the issuance of 35 million shares and 51,128,186 warrants in the capital of the company, exercisable at a price of 10 cents per share, all on the same terms as 51,128,186 existing options, warrants and a debenture of the company. The warrants issued to Royal Resources may not be exercised prior to the exercise of an identical number of Aldershot options, warrants and the debenture currently existing, and expire when these securities expire if not exercised. The purpose of the issuance of the warrants to Royal Resources is to prevent Royal Resources from being diluted by the exercise of existing options, warrants and the debenture. The agreement with Royal Resources also contains an anti-dilution provision.

The acquisition will be financed either by a two-year convertible loan in the amount of $1.5-million bearing an interest rate of 8 per cent, convertible by Royal Resources at any time at 10 cents per share, or a private placement of $1.5-million at five cents per unit. Each unit will comprise one common share and one non-transferable warrant. Each warrant will be exercisable for a period of two years, at a price of 10 cents per share. The company will disclose which method of financing will be proceeded with in the immediate future.

The terms of the proposed acquisition of shares of Royal USA, and issuance of Aldershot shares and warrants are subject to shareholder and TSX Venture Exchange approval. The terms of the proposed financing are subject to TSX Venture Exchange approval.

Management and the board of directors of Aldershot are delighted to have entered into this transaction as it will add the depth of Royal USA's uranium exploration properties in the United States of America to Aldershot's portfolio of uranium properties in Australia and Zambia. The details of the properties are as follows.

Royal Resources' uranium USA exploration activities are imbedded in four joint ventures (mentioned below). The key joint venture was originally with U.S.-based private company Lynx E&M LLC, known as the Lynx-Royal joint venture (LRJV). This joint venture was used as a vehicle to enter into three other joint ventures: the Colorado Plateau Partners joint ventures (CPPJV) with Energy Fuels Resources Corporation of Denver, Colo., the Arizona Strip Partners (ASPJV) and the Geolynx joint venture with private company Geomininc. The two joint ventures with Energy Fuels are strategically important as Energy Fuels in January, 2011, was granted final approval to build its uranium mill at Pinon Ridge, easily within trucking distance of Royal USA tenements.

Lynx-Royal JV LLC

Royal Resources through its wholly owned subsidiary, Royal USA, formed a joint venture with Lynx2 LLC of Salt Lake, Utah, in relation to the uranium areas of interests in the Uravan mineral belt. Royal USA had to spend $4.5-million (U.S.) in order to acquire an 80-per-cent interest in the joint venture. This was achieved in August, 2008. Royal USA's interest was further increased in August, 2009, to 90 per cent. Lynx2 LLC's 10-per-cent interest is free carried by Royal USA until the completion of the first bankable feasibility study. The above joint venture operates under a joint venture entity called Lynx-Royal JV LLC of which Royal USA is the operating manager. The landholding totals 6,051 acres (2,449 hectares).

The target is sandstone-hosted tabular uranium hosted in the palaeochannel-dominated salt wash member of the Jurassic Morrison formation. The three project areas occur within the highly prospective and historically productive Uravan mineral belt of the Colorado plateau, a rich, well-prospected but poorly explored uranium-vanadium province in the United States of America. Producing since 1885, it has delivered over 30 per cent of the USA's uranium from over 2,500 uranium mining operations producing at an average grade of 0.32 per cent U3O8 (triuranium octoxide).

Geolynx LLC

Royal USA formed a joint venture with Lynx3 LLC, GeoMinInc, a Colorado-registered company, and Randy Dale Roberts a geologist of Canyon city in Colorado. Under the terms of the joint venture agreement, Royal USA and Lynx3 LLC could acquire an 80-per-cent interest (64 per cent Royal, 16 per cent Lynx3) in 106 claims in the Tallahassee Creek area of the Thirty Nine Mile volcanic field, a historically high-grade uranium producer by staged payment of $210,000 (U.S.) and can earn a further 80-per-cent interest (64 per cent Royal, 16 per cent Lynx3) in all new claims, properties and resources acquired by the joint venture by incurring a further expenditure of $800,000 (U.S.) over 18 months. This was achieved in 2010. In August, 2009, Lynx3 LLC assigned all of its 16-per-cent interest to Royal USA. GeoMinInc's 20-per-cent interest is free carried by Royal USA until the completion of a bankable feasibility study. This joint venture operates under an entity called GeoLynx LLC of which Royal USA is the operating manager.

Colorado Plateau Partners joint venture (CPP)

This is a joint venture between Lynx-Royal JV LLC (90 per cent Royal USA and 10 per cent Lynx2 LLC) and Energy Fuels. Under the terms and conditions of the joint venture, Lynx-Royal JV LLC and Energy Fuels have each contributed their respective Colorado properties to the joint venture. Lynx-Royal JV LLC and Energy Fuels contributed equally 50 per cent of the expenditure commitments. Originally Royal USA's interest in the joint venture properties was 40 per cent (50 per cent of 80 per cent) with Energy fuels holding 50 per cent and Lynx2 LLC 10 per cent (50 per cent of 20 per cent). Due to Royal USA's interest in Lynx Royal increasing to 90 per cent, Royal USA's interest in CPP is 45 per cent or 50 per cent of 90 per cent. This joint venture operates under a joint venture entity called the Colorado Plateau Partners LLC (CPP) of which Royal USA is the operating manager.

In December, 2010, the CPP acquired the Sage Plains uranium property that included the historic uranium- and vanadium-producing Sage mine. The property consists of 94 contiguous unpatented mining claims (1,942 acres) in the Uravan mineral belt and is strategically located approximately 110 highway kilometres from Energy Fuels' Pinon Ridge uranium mill.

Reports by Umetco Minerals Corp. (successor to Union Carbide Corp.) prepared in 1991 indicate extensive uranium and vanadium mineralization with grades of up to 0.24 per cent U3O8 were encountered in drilling on the state lease. Drilling on the claim block by Atlas Minerals indicated similar mineralized intercepts there. On the basis of this work, the CPP will be targeting 100,000 tonnes to 200,000 t of rock averaging between 0.15 per cent to 0.35 per cent (three pounds to seven pounds per ton) to yield between 300,000 and 1.5 million pounds U3O8. The area is amenable to low capital expenditures and small-scale mining that will not attract onerous permitting requirements. It should be noted that the potential quantity and grade are conceptual in nature; there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the discovery of a mineral resource.

Arizona Strip Partners joint venture

This is a joint venture between Royal USA (50 per cent) and Energy Fuels (50 per cent). Under the terms and conditions of the joint venture, Energy Fuels has contributed the Arizona properties controlled by Energy Fuels. Royal USA could earn a 50-per-cen interest in the joint venture properties by expending $1.9-million (U.S.) over six years. After satisfying all the joint venture terms and conditions of the Arizona Strip Partners joint venture agreement, Royal USA's interest in the joint venture properties will be 50 per cent with Energy Fuels holding 50 per cent. This joint venture operates under a joint venture entity called the Arizona Strip Partners LLC of which Energy Fuels is the operating manager.

We seek Safe Harbor.