Bannerman Resources Limited
TSX : BAN
ASX : BMN
NAMIBIAN : BMN

Bannerman Resources Limited

July 31, 2012 07:00 ET

Bannerman Releases June 2012 Quarterly Activities Report

PERTH, AUSTRALIA--(Marketwire - July 31, 2012) - Bannerman Resources Limited (ASX:BMN)(TSX:BAN)(NAMIBIAN:BMN) ("Bannerman") is pleased to announce highlights from its June 2012 Quarterly Activities Report released today. The full report is available on Bannerman's website at www.bannermanresources.com and on SEDAR (www.sedar.com).

HIGHLIGHTS

  • Release of the results of the Etango Uranium Project Definitive Feasibility Study ("DFS"), confirming the viability of a long life and large scale uranium mining project.

  • Receipt of environmental approval for the Etango Project from the Namibian Ministry of Environment and Tourism. The environmental approval is a necessary step in obtaining a mining licence for the Project.

  • Execution of a binding Term Sheet with Namibian state-owned mining company Epangelo Mining Company (Proprietary) Limited (Epangelo) for Epangelo to acquire an initial 5% interest and subsequent additional 5% interest in Bannerman's Namibian subsidiary, the sole owner of the Etango Uranium Project. Technical due diligence has been completed to Epangelo's satisfaction and efforts are now focused on finalising the transaction documentation and Epangelo's financing.

  • Drilling during the quarter intersected consistent and broad mine-grade mineralisation under the DFS open pit mine design. These results, in addition to those reported in the previous quarter, have confirmed the Etango deposit to be open down dip to the west and at depth, indicating the potential to expand the pit design and extend the modelled mine life.

  • Appointment of experienced Resource Capital Funds senior executive Ian Burvill as a Non-Executive Director following the retirement of Mason Hills who has relocated overseas.

  • Cash holdings of A$9.6 million as at June 30, 2012, with significant reductions in monthly expenditure now expected following completion of the DFS.

Activities for the second half of 2012 for the Etango Project will focus on completion of the Epangelo transaction, pursuit of the Etango Project mining licence, advancement of discussions with potential development and financing partners, and prudent cash management.

Bannerman's CEO, Len Jubber, said: "Completion of the Etango Project DFS and subsequent receipt of formal environmental approval represent significant milestones and further de-risk the Etango Project. In addition, drilling carried out over the last two quarters confirms that the Etango deposit is open down dip and at depth, and therefore offers significant potential for mine life extensions beyond the current reserve life of 16 years. Etango is now one of the very few large scale and low technical risk projects backed by a DFS and with significant resource upside."

With confirmation during the quarter of China's extensive nuclear reactor development program, commencement of reactor restarts in Japan and further reports of production disruptions, Bannerman is well positioned to offer its investors substantial exposure to positive uranium fundamentals.

Len Jubber, Chief Executive Officer

July 31, 2012

About Bannerman - Bannerman Resources Limited is an emerging uranium development company with uranium interests in Namibia, a southern African country which is a premier uranium mining jurisdiction. Bannerman's principal asset is its 80%-owned Etango Project situated southwest of Rio Tinto's Rössing uranium mine and to the west of Paladin Energy's Langer-Heinrich mine. Etango is one of the world's largest undeveloped uranium deposits. Bannerman is focused on the development of a large open pit uranium operation at Etango. More information is available on Bannerman's website at www.bannermanresources.com.

Technical and Cautionary Disclosures

Certain disclosures in this report, including management's assessment of Bannerman'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. Full descriptions of these risks can be found in Bannerman's various statutory reports, including its Annual Information Form available on the SEDAR website, sedar.com. Readers are cautioned not to place undue reliance on forward-looking statements. Bannerman 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.

Mineral Resources which are not Ore Reserves do not have demonstrated economic viability.

The information in this report that relates to the exploration results of the projects owned by Bannerman is based on information compiled by Mr Martinus Prinsloo, Exploration Superintendent of Bannerman. Mr Prinsloo is a Member and a Chartered Professional of the Australasian Institute of Mining and Metallurgy, a Recognised 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 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 for purposes of National Instrument 43-101 of the Canadian Securities Administrators. Mr Prinsloo 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 relating to the Mineral Resources of the Etango Project is based on a resource estimate compiled or reviewed by Mr Brian Wolfe, a full time employee of Coffey Mining Pty Ltd. Mr Wolfe is a Member of the Australian Institute of Geoscientists 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 a 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 and a Qualified Person as defined by Canadian National Instrument 43-101. Mr Wolfe consents, and provides corporate consent for Coffey Mining Pty Ltd, to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report relating to the Ore Reserves of the Etango Project is based on information compiled or reviewed by Mr Harry Warries, a full time employee of Coffey Mining Pty Ltd. Mr Warries is a Fellow 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 a 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 and a Qualified Person as defined by Canadian National Instrument 43-101. Mr Warries consents, and provides corporate consent for Coffey Mining Pty Ltd, to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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