Skull Creek Property, Colorado USA

Option to earn up to a 75% interest from Energy Metals Corp.

Bluerock Resources Ltd. has signed an option agreement with Energy Metals Corporation (EMC) to form a joint venture on the Skull Creek Project in North West Colorado, USA. Bluerock can earn up to a 75% interest in the Skull Creek Project which hosts near surface meralization with grades of 0.3% U3O8. Historical work has reported grades of up to 1.2% U3O8 in near surface adits. Bluerock see teh Skull Creek project as a strong target for developing near surface open pitable resources.

Under the terms of the agreement, Bluerock has the option to earn a 75% interest in these projects by:

spending US $1,000,000 on the property over five years;
issuance of a total of 1.15 million shares staggered over five years;
make a payment of US $6,000 on signing and reimburse EMC for certain staking costs and fees for expanding the claim package in the summer of 2006;
Completing a feasibility study on the project.

The Skull Creek Project is comprised of 197 claims covering approximately 3,940 acres located on public lands administered by the Bureau of Land Management and 1,280 acres of State of Colorado leases. The original position of 72 claims was acquired in the Standard Uranium Inc.- EMC merger. Bluerock's property covers uranium mineralization in steeply dipping lignite beds hosted within the Sego Sandstone along 12 miles of the east-west striking northern limb of the Red Wash Syncline.

According to a 1956 geologic report by Geological Services of Moab, Utah (Geologic Reconnaissance Report on Lignite Properties in Moffat County, Colorado by Wm. Dean McDougald and R. L. Mehle), uranium mineralization is contained in three of seven lignite and carbonaceous shale seams separated by much thicker sandstone beds. The seams are classified in numerical order from oldest to youngest as 1 through 7. McDougald and Mehle reported that the No. 2 Seam is continuous and mineralized over a 12 mile strike length while the No. 3 and No. 5 seams show less thickness and continuity. Bluerock holds 10.1 miles of the 12-mile mineralized strike length documented in the report on its mineral claims and has been granted Colorado State Leases for an additional two miles.

Uranium in the lignites and sandstones of the Sego unit were derived from weathering of the then overlying Browns Park Formation, a tuffaceous unit containing minute uranium values. Weathering and downward migration of the resulting uranium-charged groundwater provided a source of uranium and the organic material present in the lignites and sandstones provided a ready reductant to fix the uranium in place.