AIM: ORI

TSX: ORL

PRESS RELEASE

3 June, 2008

Oriel Resources Plc ("Oriel" or the "Company")

Cancellation of Certain Warrants

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Further to the announcement by Mechel OAO ("Mechel") on 17 April 2008, that all conditions of its recommended cash offer for the entire issued and to be issued ordinary share capital of Oriel Resources plc (AIM:ORI, TSX:ORL) had been satisfied, the Company announces that on 2 May 2008 Mechel and Oriel distributed a letter to the registered holders of warrants over ordinary shares of 1p each in the share capital of the Company (AIM:ORIW) ("the Warrants") offering the Warrant holders the alternative of a cash payment in consideration of the cancellation of the Warrants ("the Cash Cancellation Proposal"). The Cash Cancellation Proposal was open for acceptance until 21 May 2008.

The Company further announces that Warrant holders holding a total of 8,239,144 Warrants validly accepted the Cash Cancellation Proposal. Following the cancellation of these Warrants, 1,144,797 Warrants remain in issue and listed on the AIM market of the London Stock Exchange and can be exercised in accordance with the standard procedure. 

The Company intends to exercise its right under the deed poll dated 7 February 2005, pursuant to which the Warrants were issued, to appoint a trustee who shall have the power to sell the remaining Warrants or exercise the remaining Warrants and sell the resulting shares.

ENDS

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For further information please contact:

Tania Tchedaeva, Assistant Company Secretary, Oriel Resources Plc

Tel: +44 (0) 20 7514 0590

Gavin Dallas, Marketing and PR, Oriel Resources Plc

Tel: +44 (0) 20 7514 0590

Michael Padley / Michael Spriggs, Bankside Consultants

Tel: +44 (0) 20 7367 8888

Ryan Gaffney, Canaccord Adams Limited

Tel: +44 (0) 20 7050 6500

Keith Schaefer, Vanguard Shareholder Solutions

Tel: + 1 604 608 0824

www.orielresources.com

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