ATOM ENERGY ASX ANNOUNCEMENT ASX: AXY 19 May 2010 Atom Energy Completes over 50% of Phase 2 Drilling at Kalgoorlie North Gold Project Highlights: - Atom has completed 190m of diamond drilling and 2,930m of RC drilling representing over 50% of second phase drilling at Kalgoorlie North Gold Project. - The total drilling campaign of 6,000m is targeting high grade mineralisation within the Excelsior Shear Zone, the North Talbot Structure and the Ajax Cross Structure. - Drilling is now completed at the Excelsior North target area and will commence imminently at the North Talbot Structure. - The Excelsior Shear Zone strike length is >4km with historical gold workings located sporadically along the zone. - Drilling is designed to increase and upgrade existing Inferred Resources to Indicated status and delineate additional high grade zones. - The Kalgoorlie North Gold Project − located between the current Paddington operations and the Aphrodite deposit − holds potential for multi‐million ounce gold deposits. - Treatment options being evaluated include heap leach, dump leach, owner-operated milling and toll milling. Gold explorer, Atom Energy Limited (Atom or the Company) has completed over 50% of a comprehensive second stage drilling program at its Kalgoorlie North Gold Project (Project) located in the Bardoc Tectonic Zone, 45km north of Kalgoorlie in Western Australia.

The extensive drilling program is in line with the Companys objective to fast‐track resource expansion and mine development at current high gold prices. The current drill program is targeting high grade zones along the Excelsior Shear Zone (20km from the Paddington operations), the North Talbot Structure (6km from the Paddington Operations) and at the Ajax Prospect (refer Annexure A in full Announcement). To date Atom has completed the drilling program at the Excelsior North target area where 2,930m of RC drilling and 190m of diamond drilling was undertaken in 17 holes.

The results from this drilling are expected to be received in the next 4‐6 weeks. Drilling is expected to commence at the North Talbot Structure this week where 6 holes will be drilled comprising of approximately 970m of RC drilling and 260m of diamond drilling.

Drilling at North Talbot has been designed to test depth extensions to the mineralisation and to test for oxide mineralisation to the north. The Excelsior Shear Zone has a strike length of >4km north of the Excelsior Deposit and has historical gold workings located sporadically across the zone.

Drilling by previous explorers has determined resources at Lochinvar and Three Star located 1.4km and 2.1km north of the Excelsior Deposit respectively.

Previous drilling by Atom along the Excelsior Shear Zone in late 2009 identified high grade zones offering the potential for further exploration to confirm the extent of the mineralisation within these zones. The second phase drilling campaign of 6,000 metres forms part of a larger 12 month exploration program which includes up to 30,000 metres of drilling and will run until early 2011. The drilling program currently underway is designed to test the extent of the mineralisation at depth and along strike at Excelsior, North Talbot and Ajax.

Atom expects to be able to complete on the remainder of this drilling in June, with the results to be received periodically.

The planned drill hole locations at Excelsior North, North Talbot and Ajax are outlined in annexures A, B and C.

This phase 2 program will be followed by drilling to test the priority targets on major north trending shear zones and the high grade cross cutting structures ‐ including the Ajax, Castlereagh and Marmont prospects.
To download the full ASX Announcement, click here: http://esp.gewru.com/download/files/12414/1166532/20100519%20-%20Atom%20Energy%20Completes%20over%2050_%20of%20Phase%202%20Drilling%20at.pdf
For further information, please contact: Atom Energy Limited Bevan Tarratt Executive Director T: + 61 8 9481 2276 E: Media Felicity Nuttall Professional Public Relations T: + 61 8 9388 0944 E:
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