Bannerman Resources Limited
TSX : BAN
ASX : BMN

Bannerman Resources Limited

August 05, 2008 08:33 ET

Bannerman Resources Increases Overall Resource Estimate by 48%

PERTH, AUSTRALIA--(Marketwire - Aug. 5, 2008) - Bannerman Resources Ltd (TSX:BAN)(ASX:BMN) ("Bannerman" or the "Company"), an Australian-based uranium exploration and mine development company, is very pleased to report a significant increase in total mineral resources at the Goanikontes, Anomaly A project. The new mineral resource estimate using a cut-off grade of 100 ppm U3O8, now consists of 66.9 million pounds of Indicated Mineral Resource (January 2008 reported 12.9 Mlbs.), and 39.7 million pounds of Inferred Mineral Resources (January 2008 reported 59.3 Mlbs.). The deposit remains open to the North, South, West and down-dip. The new NI 43-101 mineral resource estimates and models were completed by Neil Inwood of Coffey Mining Ltd, an independent consultant to Bannerman Resources and a Qualified Person as defined by NI 43-101.

"We are delighted with this upgrade to the Anomaly A resource which now exceeds the original exploration target of 100 million pounds and still offers considerable scope for further resource expansion over the coming year," says Peter Batten, Managing Director of Bannerman Resources Ltd. "We are also pleased to see that there are very large amounts of metal present at the higher cut-offs. This indicates a strong potential for the project to sustain much higher head-grades over many years. This could have a significant impact upon production rates and the overall revenue generated by this first open pit."



UPDATED RESOURCE ESTIMATES - GOANIKONTES ANOMALY A

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Indicated Resources
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Low Cut Tonnes Grade Metal (U3O8)
(U3O8 ppm) t ppm tonnes 1,000 lbs
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100 145,000,000 209 30,300 66,900,000
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150 112,300,000 233 26,200 57,700,000
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200 69,400,000 269 18,700 41,200,000
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Inferred Resources
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Low Cut Tonnes Grade Metal (U3O8)
(U3O8 ppm) t ppm tonnes 1,000 lbs
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100 91,600,000 197 18,000 39,700,000
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150 65,500,000 224 14,600 32,300,000
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200 34,500,000 268 9,300 20,400,000
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Note: Figures have been rounded
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The database used in the estimate includes results from 456 RC and 49 diamond drill holes totalling 140,558m. Only drillholes drilled by Bannerman have been used in the estimate.

The drillholes were drilled typically at 60 degrees to the east (UTM grid) with a drill spacing ranging from 50m by 50m to 50m by 100m (please see drill plan on Company website www.bannermanresources.com). A combination of chemical assaying (30,011 samples - 97% of the total) and factored radiometric data (947 1m composites) was used and a density value of 2.62t/m3 was used for the mineralised zones. This value was chosen after analysis of 3,427 density determinations by water immersion and calliper methods.

The resource was reported using a range of lower cuts. For instance, the 100ppm lower cut is the same as that used by Rossing another alaskite hosted uranium deposit. Block dimensions used were 50m by 25m by 10m with sub-cells to 5.25m by 6.25m by 1.25m. The grade was estimated using Ordinary Kriging on cut 3m composite samples.

Mineralised zones dip from -30 degrees to -40 degrees to the west with a northerly trend. Individual zones were modelled from 150m to 1,700m long. Figure 3 shows a typical sectional interpretation. Mineralised zones which did not have more than two drillhole intersections on two consecutive sections were typically not estimated leaving further upside to discover more resources.

Significant exploration potential still apparent at Goanikontes

Resource drilling has largely been completed at Anomaly A, however, a considerable scope remains to further expand the resource at depth and along strike to the north and south where mineralisation has yet to be closed off. Additionally, step out holes to the west, to test the depth extensions of the ore body, encountered several previously unknown mineralised alaskites in the hanging wall of the known mineralisation. These may represent the southern continuation of the outcropping Oshiveli mineralised alaskites to the north giving even more scope to discover further mineralisation. The drill rigs have been moved for the interim onto the expanded exploration programme and are currently drilling at the Oshiveli, Rossingberg and Ombuga prospects.

Aside from the potential of the northern and western areas, the extensions to the south around the nose of the Palmenhorst Dome towards the outcropping Ompo alaskites are highly prospective. This zone extends for approximately 8km and lies beneath very shallow sand cover. The Company intends to drill this zone in the current quarter.

The resource estimate announced today for Anomaly A has been identified from drilling over a strike length of only 2.5 kms. The historic drilling at Oshiveli and Onkelo and the Company's recent drilling has shown the known mineralisation around the Palmenhorst Dome to extend for more than double this strike length to the north.

Given the extensive strike extent of the Anomaly A to Ompo trend in excess of 11 kms, with known subcropping radioactive alaskite zones, in addition to the several other 1 to 6km alaskite prospects being tested the Company is targeting a potential 200 to 400 Mt of mineralisation from these areas at grades of 200 ppm to 300 ppm U3O8 to add to the +100Mlbs already defined at Anomaly A. The potential quantity and grade is conceptual and insufficient exploration has been performed to define a Resource for the additional target at this time. It is uncertain whether further exploration will result in a resource.

The Anomaly A resource allows the company to progress the Definitive Feasibility Study to the stage of optimisation of the resource with the intention of producing a reserve statement.

The completion of the resource drilling at Anomaly A is the realisation of a further milestone in the rapid progress the Company is making towards becoming a uranium producer in 2011.

The Anomaly A resource is proving to be an exceptional project providing the scale required to enter the ranks of the tier one global Uranium producers with the potential to sustain production for a considerable period of time.

About Bannerman

Bannerman Resources Limited is an emerging uranium producer with interests in two properties in Namibia, an African country considered to be a premier mining jurisdiction. Its principal and most significant asset is its 80% interest in the Goanikontes project situated on a trend southwest of the Rio Tinto Rossing uranium mine.

Bannerman is focused on accelerating the development of a very large, bulk-tonnage, uranium deposit at Goanikontes, Namibia. A mine plan is contemplating low cost uranium production using proven processing techniques. The scoping study completed in December 2007 describes robust project economics using conservative uranium prices. A definitive feasibility study is currently underway by GRD Minproc. The company expects to bring its starter asset at the Goanikontes deposit into production by 2011.

The area offers tremendous exploration potential. Exploration of the several other identified targets away from Anomaly A has commenced and will continue through the development stages of the Goanikontes starter asset.

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 Peter Batten, who is a Member of The Australasian Institute of Mining and Metallurgy and 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'. Mr Batten 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 Mineral Resources at the Anomaly A Deposit is based on a resource estimate completed by Mr Neil Inwood who is a full time employee of Coffey Mining 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'. 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.

Forward-Looking Statement

This press release contains certain forward-looking information about the Company that is intended to be covered by the safe harbour for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. The reader is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

Please visit the Company website at www.bannermanresources.com

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