Dwyka Resources Limited ('Dwyka' or 'the Company')

Drilling at Daguma off to a Positive Start

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Highlights

• First drill hole complete

• Coal in one discrete seam intersected for over 10m

• Drilling programme remains on schedule

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The directors of Dwyka, together with their local Philippine partner MANA Resources Development Corporation, Inc. ("MRDC"), are pleased to announce a positive start to the drilling programme at the Daguma Coal Project.

Drilling commenced on 12th August and the first hole was completed on 20th August and drilled to a depth of 75.8 metres. The first drill hole (Hole no DDH-1 in Figure 1) intersected 3 coal seams with 10.35m of coal intersected in discrete robust seam. The top of the main seam was intersected at a depth of 36.6m. The hole is situated approximately 550m from the outcrop position of the main seam.

The core from the first completed hole has been logged and sampled according to JORC guidelines and the samples are currently being transported to the laboratory in Manila for coal quality analysis. Drilling of the second hole has commenced.

The current drilling programme is designed to verify previous drilling and the first 8 holes are to be located close to the identified coal outcrop, which would be the start to the open pit area of the mine.  

The objective of the drilling is to identify a mineable reserve and commence mining operations.

Commenting on the progress, Melissa Sturgess, Chief Executive Officer of Dwyka said "we are delighted that not only is drilling underway on schedule, but that the first hole hit over 10m of coal. We look forward to bringing shareholders more information as drilling progresses."

Speaking from Manila, MRDC President Mr Evaristo Narvaez, Jnr said "our local team is working continuously on the project and we are pleased to be able to report early positive results from our drilling programme."

(The Company notes that the exploration to date has not defined a JORC compliant Mineral Resource, and that there is no certainty that further exploration will result in the determination of a JORC compliant Mineral Resource)

To view a map showing the Daguma Project Drill Hole Locations, please click on the following web link:

http://www.rns-pdf.londonstockexchange.com/rns/1045D_-2008-9-10.pdf

Ends

For further information please contact:

Bernard Olivier (+61) (0) 408 948 182

Ed Nealon (+61) (0) 8 9324 2955

Melissa Sturgess (+44) (0) 78 2555 1397 or melissa@dwyresources.com

Dwyka Resources Limited

Richard Brown
Richard Greenfield
Ambrian Partners Limited
(+44) (0) 20 7634 4700

Press Enquiries

Charlie Geller/Leesa Peters (+44) 20 7429 6604 or (+44) 75 28 233 383

Conduit PR

or visit http://www.dwyresources.com

The technical exploration and mining information contained in this Notice has been reviewed and approved by Ed Nealon. Mr Nealon is a Dwyka Resources Limited Director and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is 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 and as a qualified person under the AIM Guidance Note for Mining, Oil and Gas Companies. Mr Nealon is a member of the Australian Institute of Mining and Metallurgy. Mr Nealon consents to the inclusion in this announcement of such information in the form and context in which it appears.

Notes to editors:

Dwyka is focusing on the diversified minerals sector in order to achieve maximum value for shareholders during the ongoing resource boom. 

Coal

Dwyka is entitled to progressively acquire an indirect interest of up to 100% in each of two Filipino companies which own the Daguma and Bonanza coal deposits, located in southern Mindanao, The Philippines ("Daguma Coal Project"). The Daguma Coal Project comprises 10 coal Blocks, each having an area of approximately 10 square kilometres (giving a total project area of approximately 100 square kilometres). Two of the Blocks (the Daguma Blocks) have been the subject of significant historical drilling (32 holes) and other work, including the completion of a scoping study. The remaining 8 Blocks (the Bonanza Blocks) are also located within the same geological coal basin, termed the Cotabato Basin, and have recently been proven to be coal bearing through a combination of drilling, pitting and trenching. Dwyka considers these Blocks to be highly prospective, with the potential to be of similar size or even exceeding the two main Blocks. The Company is planning to initiate an extensive grid drilling programme on the remaining 8 Blocks, which will enable resource estimation and classification to occur within the next 12 months.  

Analysis of the coal located at the Daguma Coal Project suggests that it is of medium calorific value, approximately 5,300 Kcal/kg, making it suitable for both the export market to India and China and for in-country power stations and industrial (cement) purposes. The Philippines has ready demand for coal for power stations and other coal miners in The Philippines are already exporting similar calorific value coal to India, China and Hong Kong.

Nickel

Dwyka has a major nickel exploration project underway in Burundi. Dwyka acquired all of the shares in Danyland Limited ('Danyland'), the owner of the Muremera Nickel Project in Burundi, Africa, in January 2007. The Muremera project is located within one of the world's principal nickel provinces, only 2 kilometres from, almost adjacent to and in the same geological sequence as, the giant Xstrata/Barrick Kabanga deposit in Tanzania.

The Kabanga deposit is thought to be the world's largest undeveloped nickel sulphide deposit and has similar geophysical anomalies to those at Muremera. An exploration permit has been granted in relation to Muremera and access for exploration activities is good. The project's prospectivity has led to a commitment from BHP Billiton to spend at least US$5.2 million as part of sole funding arrangements to earn up to a 50% interest in Danyland. 

Gold

Pursuant to a Shareholders and Earn-in Agreement dated 16 July 2007, Dwyka has the right to earn up to a 90% interest in Swaziland Gold (Pty) Ltd ('SwaziGold'), which in turn owns the Swazigold Project in Swaziland, Africa. The project is a large (435 square kilometre) gold exploration play in the highly prospective Archaean Barberton Greenstone Belt in Swaziland, historically a producer of 11.5 million ounces of gold. 

In the Barberton Greenstone Belt, extensive, shallow, historic workings, plus a lack of modern exploration, have presented Dwyka with an ideal opportunity. Previous owners drilled some 13,500 metres of the project area, providing the Company with a drill database that includes numerous gold intersections. These have allowed Dwyka to establish immediate targets for both infill drilling and the development of extensions to established zones of mineralization. In the current favourable resources climate, it is believed that Dwyka's gold exploration activities will accelerate. 

Diamonds

Dwyka has a shareholding of 48.2% in KimCor Diamonds Plc, an AIM-listed diamond explorer and producer with a portfolio of projects in Southern Africa.

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