Bannerman Resources Limited
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ASX : BMN

Bannerman Resources Limited

July 06, 2009 06:00 ET

Bannerman Extends Strike Length of Broad Shallow Zones at Etango

PERTH, AUSTRALIA--(Marketwire - July 6, 2009) - Bannerman Resources Limited (ASX:BMN)(TSX:BAN)(NSX:BMN) ("Bannerman"), an Australian-based uranium development and exploration company, is pleased to announce further encouraging drilling results at the Oshiveli and Onkelo Prospects within the Etango Uranium Project in Namibia, southern Africa.

Highlights include:

- Results from an additional 43 reverse circulation ("RC") drillholes along strike at both prospects have confirmed extensions of multiple broad mineralised zones generally close to or directly from surface. Significant results include:



--------------------------------------------------
Downhole Interval Grade From Depth
(m) (ppm U3O8) (m downhole)
--------------------------------------------------
103 237 12
Including 21 526 41
13 279 32
20 348 11
12 286 15
27 350 175
57 325 120
42 451 66
11 413 93
--------------------------------------------------


- Drilling further extends the known strike length of mineralisation at Oshiveli and Onkelo to the north and south respectively. Mineralisation remains open between the two prospects and also at depth.

- Resource extension drilling at Oshiveli and Onkelo is continuing (167 RC drillholes have been completed to date) and further results will be reported in due course.

- Previously reported drilling results from these areas are currently being incorporated into a resource update for the Etango Project which is planned to be released to the market before the end of July.

Bannerman CEO Len Jubber said: "These new results raise the potential for further increases in the already substantial resource estimate for the Etango Project. The continued success in delineating broad areas of shallow uranium mineralisation is consistent with the fact that 70% of the current resource estimate occurs within 200 metres of the surface."

About Bannerman - Bannerman Resources Limited is an emerging uranium development company with interests in two properties in Namibia, a southern African country considered to be a premier uranium mining jurisdiction. Bannerman's principal asset is its 80%-owned Etango Project situated southwest of Rio Tinto's Rossing uranium mine and to the west of Paladin Energy's Langer-Heinrich uranium mine. Etango is one of the world's largest undeveloped uranium deposits. Bannerman is focused on the feasibility assessment and development of a 5-7 million pounds per annum U3O8 open pit mining operation at Etango. More information is available on Bannerman's website at www.bannermanresources.com.au.

Introduction

Previous drilling at the Oshiveli and Onkelo Prospects identified multiple broad mineralised zones close to or directly from surface within the host alaskite bodies. The assays returned from the latest round of drilling at both prospects have confirmed the extension of these multiple broad mineralised zones. The Oshiveli and Onkelo Prospects are interpreted to be a 3 km northern extension to the primary Anomaly A deposit (refer Figure 1 below).

To view Figure 1: Prospect Locations within the Etango Project Area, please click on the link provided below:

http://media3.marketwire.com/docs/CLM_Figure_1.pdf

Drilling Program

Since the February 2009 resource update for the Etango Project, Bannerman has completed 70 RC drillholes for 15,725 metres at Oshiveli and 64 RC drillholes for 13,796 metres at Onkelo. Further to the drill results released in the March quarter activities report and May 20, 2009 news release, chemical assays for 43 RC drillholes have been received which confirm along-strike extensions of broad mineralised zones. The drillhole collar locations and selected intercepts are shown below in Figure 2, with the intercepts tabulated in Appendices 1 and 2 of the full version of this news release which can be found on Bannerman's website at www.bannermanresources.com.

To view Figure 2: Oshiveli and Onkelo drillhole positions and selected intercepts, please click on the link below:

http://media3.marketwire.com/docs/CLM_Figure_2.pdf

Figure 3 below is a graphical presentation of the individual one metre assays comprising the reported 103 metre intercept at an average grade of 237 ppm U3O8 in vertical drillhole GSHRC0083 at Oshiveli. As shown, this intercept includes a sub-intercept of 21 metres at 526 ppm U3O8 and a peak assay of 1,117 ppm U3O8.

To view Figure 3: One metre assays from a portion of the reported 103 metre intercept in drillhole GSHRC0083 (Oshiveli), please click on the link below:

http://media3.marketwire.com/docs/CLM_Figure_3.pdf

Two RC drilling rigs and two diamond drilling rigs will continue to operate at the Oshiveli and Onkelo Prospects with the aim of further extending the known mineralised zones along strike and down dip.

Mineral Resource

The current mineral resource estimate for the Etango Project, prepared as at February 2009, incorporates Anomaly A and the southern portion of the Oshiveli Prospect (refer the green outline in Figure 1), and comprises Indicated Mineral Resources of 195.5 million tonnes ("Mt") at an average grade of 207 ppm for 89.2 million pounds ("Mlbs") of U3O8, plus Inferred Mineral Resources of 87.0Mt at 195 ppm for 37.4Mlbs U3O8, reported at a cut-off grade of 100 ppm U3O8.

A new mineral resource estimate is now underway for the Anomaly A, Oshiveli and Onkelo areas incorporating previously reported drilling results. It is anticipated that this updated mineral resource estimate, including an inaugural estimate for Onkelo, will be available before the end of July 2009.

Most of the drilling results contained in this announcement will not form part of the July 2009 mineral resource update, as these results have been received after commencement of the mineral resource estimation process. These latest drilling results will however be incorporated in subsequent resource updates.

Regulatory Disclosures:

Bannerman Resources Limited ("Bannerman") manages its drilling and assaying activities in accordance with industry standard quality assurance/quality control (QA/QC) procedures. Samples are collected by Bannerman personnel and prepared in accordance with specified procedures at the relevant assay laboratories. The primary assay laboratory is SGS in Johannesburg Laboratory site reviews are undertaken. Assay QA/QC involves the use of assay standards (sourced from African Mineral Standards (AMIS) in Johannesburg, made from Bannerman pulp rejects and cross-checked through umpire laboratories for which the round robin reports are available), field duplicates, blanks and barren quartz flushes. A third party "umpire" laboratory (Genalysis in Perth) is used to cross-check and validate approximately 5% of the assay results in accordance with standard procedures. Sample coarse rejects are retained and approximately 5% of samples are re-submitted for further assay verification. All sample pulps are retained at a storage facility in Johannesburg and half-core and rock-chip samples are retained at site.

The information in this report that relates to the Mineral Resources of the Etango Project is based on a resource estimate completed by Mr Neil Inwood who is a full time employee of Coffey Mining Pty Ltd. Mr Inwood is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience relevant to the style of mineralisation and types of deposits under consideration and to the activity which is being undertaken to qualify as Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves', and is an independent consultant to Bannerman Resources and a Qualified Person as defined by NI 43-101. Mr Inwood consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to the exploration results of the projects owned by Bannerman Resources Ltd is based on information compiled by Mr Andrew Cunningham, who is a full time employee of Bannerman and/or its subsidiaries. Mr Cunningham is a Member of The Geological Society of South Africa, a Recognised Overseas Professional Organisation by the Australasian Joint Ore Reserves Committee, who has sufficient experience relevant to the style of mineralisation and types of deposits under consideration and to the activity which is being undertaken to qualify as 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 for purposes of National Instrument 43-101 of the Canadian Securities Administrators. Mr Cunningham consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Bannerman has not completed feasibility studies on its projects. Accordingly, there is no certainty that such projects will be economically successful. Mineral resources that are not ore reserves do not have demonstrated economic viability.

Certain disclosures in this report, including management's assessment of Bannerman Resources Ltd's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Bannerman's operation as a mineral development company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. The following are important factors that could cause Bannerman's actual results to differ materially from those expressed or implied by such forward looking statements: fluctuations in uranium prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; general market conditions; the uncertainty of future profitability; and the uncertainty of access to additional capital. Full descriptions of these risks can be found in Bannerman's various statutory reports, including its Annual Information Form available on the SEDAR website, www.sedar.com. Readers are cautioned not to place undue reliance on forward-looking statements. Bannerman Resources Ltd expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

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