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

16 July 2008

Kalahari Minerals plc ('Kalahari')

Significant Results continue 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. 

Extract Resources (ASX & TSX: EXT), a uranium exploration company with projects in Namibia, Africa, today announced that Reverse Circulation drill holes at Rossing South have now extended over 6.2 km of the 15 km target zone. Results from chemical assays, down-hole spectrometer surveying, and hand-held spectrometer have indicated anomalous uranium values on every line of drilling completed to date. Within this, two (2) large higher-grade zones of uranium mineralisation have been identified:

Zone 1 has been tested on 400m spaced traverses and shows apparent continuity over 1,200 metres of strike and has been intersected up to 275m below surface, in the deepest hole drilled thus far. Mineralisation is still open along-strike to the south and at depth. Zone 1 is close to the license boundary with the Rossing project area (Rio Tinto 69%).

Zone 2 has been tested on 400m spaced traverses and shows apparent continuity over 1,200 metres of strike and 290 metres depth, and which remains open along-strike and at depth.

Further results from Zone 2 have just been returned for both chemical assays and down-hole spectrometer surveys, with some of the significant intersections including:

Note: eU308 refers to equivalent U308 grade derived from spectral gamma logging.

Wide zones of good grade, alaskite hosted uranium mineralisation continue to be intersected at Rossing South which includes multiple high grade domains. The prospect has progressed rapidly from a 'concealed' discovery to a large resource definition target since the first drilling results were announced in January 2008.

Detail

The downhole logging was performed by Terratec Geophysical Services, a Namibian based geophysical contractor using a spectral logging tool which has been recently calibrated at the Pelindaba facility in South Africa. It should be noted that spectral radiometric assays remain provisional until chemical assays can be returned.  

Terratec are expected to return to site over the next fortnight so that downhole spectrometer surveying can resume. These results, along with chemical assay data will enable the Company to provide a steady news flow on progress at Rossing South.

Drilling continues at Rossing South, with two Reverse Circulation drill rigs testing the boundaries of this large mineralised system before closing the line spacing down to 100 metres to enable resource definition. Once a water supply has been secured a core rig will also be mobilised to Rossing South to extend RC holes that reached their depth capacity and ended in mineralisation. 

The immediate goal at Rossing South is resource definition drilling concentrating on Zone 1 and 2. Exploration on the rest of the 15 kilometre long target zone will resume at a later stage.

The stratigraphy immediately north of the Namib Desert cover is steeply dipping to the east and is thought to represent the northern extent of a large south west trending dilatational zone with dips appearing to shallow along strike to the south. The mineralised alaskites, under the desert cover, are believed to be passive intrusives that have exploited this dilational zone proximal to an unconformity surface. 

Appendix 1 shows the detailed chemical assay and downhole spectrometer results. 

Metallurgical test work

Quarter NQ core has been shipped from site back to Australia and submitted for metallurgical test work at a laboratory in Perth. This test work programme will also include detailed mineralogy to help advance the understanding of Rossing South. The results from this work will assist the Company in refining the geological model and provide preliminary information to assist with flow sheet and plant design. 

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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: First pass reconnaissance RC drilling chemical assay 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 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 2.20462.

• Intersection widths are estimated to be approximately true width.

Husab Project - Rossing South Prospect: RC drilling down hole spectrometer results. Uranium intersections greater than 0.1 kg/t (100 ppm) eU3O8 over drill hole intersection widths of not less than 2 metres down hole width:

Notes:

• Intersection widths are estimated to be approximately true width.

• Assays reported as eU3O8 (uranium equivalent grades) were logged by calibrated down hole spectrometer by Terratec Geophysical Services, Namibia. Radiometric (spectral) assays should be regarded as provisional.

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