Mineral Deposits Limited
TSX : MDM
ASX : MDL

Mineral Deposits Limited

January 18, 2008 09:30 ET

Mineral Deposits Limited-Sabodala Gold Project-Underground Reserves Potential

- High grade gold intercepts including 4.8 metres (true width 4.2 metres) grading 14.7g/t - December 2007 quarter drill programme continues to extend the limits of Sabodala mineralisation - Underground potential of some 265,000 ounces adjacent to the ultimate pit to increase - Scoping study to determine underground mining viability to be commissioned in 2008

MELBOURNE, AUSTRALIA--(Marketwire - Jan. 18, 2008) - Mineral Deposits Limited (TSX:MDM)(ASX:MDL) -

The current open pit is designed to a vertical depth of 210 metres. It is estimated that the area beyond the present open pit design contains 1.7 million tonnes of undiluted Measured and Indicated resources averaging 4.7g/t gold above a 3.0g/t cut-off grade (see Figure 1). Collectively, the potential underground zones are estimated to contain about 265,000 ounces of gold. Most of this resource is immediately adjacent to the open pit in a sphere of some 0-200 metres from the pit perimeter, and most zones are still open for drilling (see Figure 2). This underground potential was included in the company's recent announcement of 2.74 million ounces of gold resources for the Sabodala Gold Project.

The structurally controlled mineralisation at the Sabodala deposit remains open at depth towards the northwest, down-dip to the west and southeast, and towards the east in the flat structure. The significant gold intercepts reported from the most recent step-out drilling continue to demonstrate the potential to extend the Sabodala mineable reserves.



Current drilling is expanding the Sabodala resource (see Figure 3).

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Underground Drill Results - Recent Significant
Intercepts
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DHID From To Interval True Width Grade Section Target
(m) (m) (m) (m) (g/t gold)
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SBRC895D 299.15 308 8.85 3 2.9 20810
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and 391 402.6 11.6 9.3 3.5 Main Flat
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SBRC746D 329 337 8 4 6.0 20730 NWS
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and 359 367 8 6.4 3.9 Main Flat
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and 447 452 5 4 3.2
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and 459 464 5 4 4.5
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SBRC830D 239 247 8 6.4 6.3 20510 East Flat
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SBRC236D 383 392 9 7.8 5.4 20490 Steep Fg
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SBRC831D 155 159.3 4.3 2.2 4.7 20330
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SBRC077D 100 114 14 11.2 4.3 20290 East Flat
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SBRC200D 246 253 7 6.1 5.5 20250 Steep Fg
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SBRC635D 229 232.4 3.4 2.7 14.6 20250 Main Flat
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SBRC199D 204 208.8 4.8 4.2 14.7 20210 Steep Fg
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SBRC495D 126.3 131 4.7 3.8 4.2 20170 East Flat
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SBRC737D 66 70 4 4 5.7 20170
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As detailed in the December 2007 quarter drill programme, drilling targeted the Main Flat Zone to the west of the Sabodala ultimate open pit design, the Lower Flat Zone also to the west at depth, the Northwest Shear and the Main Flat Zone to the north and northwest and the steep Quartz-Feldspar Porphyry (Fg) related mineralisation at depth below 300 metres. All of these targets may be amenable to future underground mining (see Figures 3 and 4). The potential for extending the underground mineralisation - the East Flat Zone - was demonstrated by the new intersection outside of the current pit limit in SBRC830D on section 20510. This intercept was 8.0 metres (estimated true width of 6.4 metres) grading 6.3g/t from 239 metres downhole (hole is drilled vertical) and lies some 130 metres beyond the current pit limit.

Assays are undertaken by independent SGS Laboratory in Kayes, Mali.

MDL expects to spend some US$5 million on exploration/resource definition in the environs of the Sabodala Gold Project.

A scoping study will be commissioned in 2008 to define suitable underground mining methods, cost structures and cut-off grades for the deeper Sabodala mineralised zones presently being defined.

The information in this report that relates to Exploration Results is based on information compiled by MDL's Mining Operations Manager, Bruce Van Brunt MSc Mining Engineering, who is a member of The Australasian Institute of Mining and Metallurgy and is also a registered professional geologist in the State of Washington, USA. Mr Van Brunt has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken. He is qualified 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 defined in NI43-101. Mr Van Brunt has consented to the inclusion of this information in the form and context in which it appears in this report.



FIGURE 1: Mineral Resources Outside of the Pit Above 3.0g/t Cut-off

DILUTED RESOURCE REPORT
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Class Cut-off Tonnage Avg/G Ounces
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Measured 3.0 710,419 4.59 104,792
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Indicated 3.0 666,494 4.44 95,206
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M+I 3.0 1,376,913 4.52 199,998
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Inferred 3.0 365,313 5.24 61,591
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UNDILUTED RESOURCE REPORT
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Class Cut-off Tonnage Avg/G Ounces
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Measured 3.0 603,963 4.90 95,206
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Indicated 3.0 1,137,150 4.64 169,786
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M+I 3.0 1,741,113 4.73 264,991
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Inferred 3.0 539,250 4.76 82,577
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Diluted blocks are 10m x 10m x 5m in size. Resource figures do not reflect additional drilling results received after 1 September 2007.

NOTE: To view FIGURE 2: Mineralised Zones Outside of the Pit, please view the following link: http://www.ccnmatthews.com/docs/Figure2MineralizedZones.pdf.

NOTE: To view FIGURE 3: Recent Significant Intercepts and Figure 4: Q4 Drill Programme, please view the following link: http://www.ccnmatthews.com/docs/Figure3and4.pdf.

ABN 19 064 377 420

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