Bannerman Resources Limited

Bannerman Resources Limited

December 19, 2007 08:44 ET

High Court Proceedings

PERTH, WESTERN AUSTRALIA--(Marketwire - Dec. 19, 2007) - Bannerman Resources Limited (TSX:BAN)(ASX:BMN) -

The Company wishes to advise that on Friday 14 December 2007 a company incorporated in Namibia, Savanna Marble Close Corporation (Savanna), commenced proceedings in the High Court of Namibia against the Namibian Minister of Mines and Energy, the Company's 80% owned subsidiary Bannerman Mining Resources (Namibia) (Proprietary) Limited (Bannerman Namibia) and an individual known as Robert D Wirtz (who has no connection with Bannerman).

The proceedings seek:

1. An order reviewing and correcting or setting aside the decision taken by the Minister of Mines and Energy in Namibia to grant Bannerman Namibia Licence EPL3345 with exclusive mineral rights for the nuclear fuel group of minerals over the area covered by Savanna's EPL3045;

2. alternatively orders that the decision by the Minister of Mines and Energy to grant Bannerman Namibia EPL3345 be declared null and void; and

3. the costs of the application.

The Company received the documentation relating to the proceedings yesterday afternoon.

EPL3045 held by Savanna only entitles it to mine stone known as "dimension stone". It is not entitled to explore for or mine any nuclear fuel minerals. Approximately 3 months ago Savanna applied to have nuclear fuels added to its licence. This application has not been dealt with and in the Company's view is unlikely to be granted.

Savanna's EPL3045 is situated north of the Swakop River not near the Company's Goanikontes Anomaly A deposit. The area the subject of the notice does not overlap on the current drilling programme and will not impact on the exploration and development work planned by Bannerman Namibia. Bannerman is not expecting any delays to the current schedule from this action.

Savanna has applied for a mining licence indicating the area of economic interest for dimension stone. This application sits on the northern boundary of the Company's licence EPL3345. The mining licence application does not cover any uranium targets currently in the Company's inventory. The area of overlap and the mining licence application area are shown on the attached map.

Prior to the commencement of the proceedings Bannerman Namibia had taken advice in relation to many of the matters the subject of the proceedings from Senior Counsel in Namibia and also its solicitors in Namibia. Having taken that advice, the company has formed the view that the proceedings have no proper foundation and are unlikely to succeed. The proceedings will be vigorously defended.

It is important to note that under Namibian law it is possible to have overlapping mining permits for different minerals and that this is quite common. Apart from the Savanna dimension stone prospecting licence there is also a mining licence for copper, a prospecting licence for limestone and an application for mica. Bannerman Namibia does not expect that Savanna's right to mine dimension stone will impact Bannerman's ability to explore for and mine uranium in the overlapping parts of its licences.

Points that should be clear:

- The area the subject of the notice covers the northeast portion of the Company's EPL3345.

- All drilling completed by the company is outside the area the subject of the notice.

- The resource update is in progress and will not be affected by the notice.

- The Company does not expect this notice to cause any delay in the current feasibility and development schedule.

- The proceedings are an attack on the decision of the Namibian Minister for Mines to grant EPL3345 and the Company has formed the view that the proceedings have no proper foundation and are unlikely to succeed.

The information in this report that relates to the Exploration Results, Mineral Resources or Ore Reserves 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" and as a Qualified Person for purposes of National Instrument 43-101 of the Canadian Securities Administrators. 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.

To view a map of Figure 1: Location Plan, click on the link below:

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