Kalahari Minerals plc / Ticker: KAH / Index: AIM / Sector: Mining & Exploration

Kalahari Minerals plc ('Kalahari')

Chemical assay results confirm high grade

 uranium mineralisation at Rossing South  

Kalahari Minerals plc, the AIM listed mining exploration and evaluation group with a portfolio of copper and base metal prospects in Namibia, is pleased to provide an update released by Extract Resources Ltd ('Extract' or 'the Company'), in which Kalahari's subsidiary, Kalahari Uranium Limited, holds a 39.11% interest. This update concerns chemical assay results obtained from recent drilling undertaken at Rossing South.

Extract Resources ("the Company"), (TSX:EXT;ASX:EXT), a Uranium exploration company with projects in Namibia, Africa, today announced that recently received chemical assay results confirm high grade uranium mineralisation at Rossing South.

Further chemical assay results have now been received from holes drilled on the discovery section, 7506000 North, which are in addition to the previously reported 100m @ 265 ppm and 40m @ 240 ppm U3O8. These results confirm that high grade uranium mineralisation is present in the alaskites beneath the Namib Desert sands. 

The chemical assay and down hole spectrometer grade information received thus far indicates that the Rossing South alaskites have comparable grades (~300 ppm U3O8) to the world class Rossing Mine. The assay results available from section 7506000 North are indicating multiple mineralised zones that bulk out to a true width of approximately 150 metres grading (on average) 300 ppm U3O8. Many of the individual mineralised zones are grading well in excess of this, with some notable high grade domains.

Standout chemical assay intersections, not previously reported include:

No results from diamond core hole RDD002 have been previously released as the hole became blocked after drilling was completed; this prevented the downhole spectrometer crew from surveying this hole. 

Of note is that RC hole RRC004A ended in high grade mineralisation, from 277 to 282m, 5m @ 1,038 ppm U3O8. 

Significantly, hand held spectrometer readings taken from the one metre bulk RC samples indicate that broad zones of uranium mineralisation continue to be intersected within uraniferous alaskite. As previously reported, considerable uranium mineralisation has been returned from every drill traverse tested to date. The mineralisation remains open along strike to the north and south, and at depth.

Peter McIntyre, Managing Director of Extract Resources, said today "These chemical assays continue to confirm the Rossing South discovery. We will soon commence closing the drill hole line spacing down to 100 metres with holes on 80 metre centres around the northern most sections of Rossing South. This is expected to demonstrate geological and grade continuity of the main zones of uranium mineralisation identified thus far."

He said, "Exploration on the remaining 10 kilometre Rossing South target area remains to be completed. Based on the exceptional results from exploration completed to date, the Company considers that there is a very high probability of additional exploration success." 

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For further information please visit www.kalahari-minerals.com or contact:

Mark Hohnen                                 Kalahari Minerals Plc                       Tel:+61 (0) 893 672 111

Olly Cairns / Romil Patel                 Blue Oar Securities Plc                    Tel: +61 (0) 86430 1631 / 020 7448 4400

Richard Chase                                Ambrian Partners                            Tel: 020 7634 4700

Robert Collins / Neil Elliot                Evolution Securities Ltd                   Tel: 020 7071 4300

Isabel Crossley / Victoria Thomas    St Brides Media & Finance Ltd        Tel: 020 7236 1177

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Martin Spivey, who is a Member of The Australasian Institute of Mining and Metallurgy and Mr Andrew Penkethman who is a Member of the Australian Institute of Geoscientists. Mr Spivey and Mr Penkethman are both full time employees of the Company. Mr Spivey and Mr Penkethman have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Spivey and Mr Penkethman consent to the inclusion in this report of the matters based on their information in the form and context in which it appears. 

Reference to down hole spectrometer results in this announcement refers to data collected by consulting geophysical contractor Terratec Geophysical Services undertaking down hole logging with a Gamma Ray Spectrometer (GRS42). This unit was calibrated at the Pelindaba facility in South Africa before arriving on site. The uranium values are recorded as parts per million (ppm) eU3O8 which is equivalent to ppm U3O8. Whilst results from this unit provide an indication of uranium mineralisation present they may also be affected by uranium mobility and disequilibrium. These factors should be considered when interpreting eU information while waiting for confirmation chemical assay results.

Reference to hand held spectrometer results refers to use of a Company owned Exploranium, GR-135 Plus, hand held spectrometer. The uranium values are recorded by placing the unit on the bulk RC sample bags and expressed as parts per million (ppm) eU which is equivalent to ppm U. Results from these units provide an indication of uranium mineralisation they may also be affected by uranium mobility and disequilibrium. These factors should be considered when interpreting eU information whilst waiting for confirmation chemical assay results.

About Kalahari

Kalahari Minerals Plc is an AIM listed mining and exploration group with a portfolio of copper and base metal prospects within western and eastern central Namibia. Two of the project areas, Dordabis and Witvlei, are prospective for sediment hosted copper mineralisation consistent with the world class Zambian Copper Belt. A third project, Ubib, is believed to be prospective for gold mineralisation and is nearby the operating Navachab gold mine.

The Company also has a 90% interest in the highly prospective Namib Lead Zinc Project centred on the old Namib Lead Mine, which was an underground operation from 1965 - 1992. Previous mine studies (non JORC compliant) indicate surface tails and underground mining reserves of 1.65 million tonnes at 5.7% zinc, 1.6% lead and 40.2 g/t silver. Kalahari aims to take the project to bankable feasibility study stage with a view to re-commencing mining operations in the short term.

Additionally, the Company holds a 39.11% interest in ASX listed Extract Resources Limited, which is focused on uranium exploration. Its key project is the Husab uranium project in Namibia where results from an ongoing drilling programme reinforce the Company's belief that the area has a strong potential to host an economic uranium deposit.

About Extract

Extract Resources is an Australian-based uranium exploration company whose primary focus is in the African nation of Namibia. The Company's principal asset is its 100%-owned Husab Uranium Project which contains three known uranium targets: Ida Dome; Hildenhof; and Rossing South.  Rossing South represents the Company's first new discovery in this area with "world class" potential. Extract is listed on the ASX and the TSX under the ticker symbol "EXT". For more information on Extract visit www.extractresources.com

APPENDIX 1:

TABLE OF NEW RESULTS

Husab Project - Rossing South Prospect: RC drilling down hole spectrometer results. Uranium intersections greater than 0.1 kg/t (100 ppm) U3O8 over drill hole intersection widths of not less than 2 metres down hole width:

Notes:

• Analyses on RC chips and NQ drill core by Genalysis Laboratory Services, Perth. Uranium assays were carried out by Four Acid Digest/MS (Method AT/MS).

• Metal values (U) have been converted to oxide values (U3O8) using a factor of 1.179, and expressed as kg/t U3O8. Note that 100 ppm U3O8 is equivalent to 0.1 kg/t U3O8, which is 0.01% U3O8.

• Assays expressed as kg/t U3O8 have been converted to lb/ tonne by multiplying by 2.2046.

• Intersection widths are estimated to be approximately true width.

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