Bannerman Resources Limited
TSX : BAN
ASX : BMN

Bannerman Resources Limited

July 29, 2011 05:00 ET

Bannerman Resources Limited: Quarterly Activities Report

PERTH, AUSTRALIA--(Marketwire - July 29, 2011) - Bannerman Resources Limited (TSX:BAN)(ASX:BMN)(NSX:BMN) ("Bannerman" or the "Company") is pleased to announce highlights from its June 2011 Quarterly Activities Report. The complete report is available on the Company's website at www.bannermanresources.com and on SEDAR (www.sedar.com).

During the June 2011 quarter, Bannerman commenced the Definitive Feasibility Study ("DFS") on the Etango Uranium Project and, following the end of the quarter, received a conditional acquisition proposal from Chinese conglomerate Sichuan Hanlong Group.

HIGHLIGHTS

  • Acquisition proposal – On 11 July 2011, Bannerman announced it had received a conditional proposal from Hanlong Mining Investment Pty Ltd, a subsidiary of Chinese conglomerate Sichuan Hanlong Group ("Hanlong"), for the acquisition of 100% of Bannerman for A$0.612 cash per Bannerman share. Bannerman and Hanlong have commenced discussions regarding the proposal and further updates will be made in due course.
  • Development partner search – As previously announced, Bannerman has been undertaking a process to identify a suitable joint venture partner to facilitate the financing, development and operation of the Etango Uranium Project. As part of this process, Bannerman has been in discussions with a number of large and well-funded parties. Accordingly, in addition to holding discussions with Hanlong, Bannerman intends to continue its joint venture discussions with these third parties.
  • Etango Project DFS – The DFS commenced at the start of the quarter, with the initial phase of work focused on incorporating the key project improvements identified in the previous quarter. Key changes in the project configuration stemming from the improvement work include a 33% increase in the plant throughput compared with the December 2010 Preliminary Feasibility Study Update, simplification of the ore feed approach and revisions to the project layout. These changes will likely result in annual production increasing by approximately 20% to 6-8 million pounds U3O8. A reduction in operating costs to US$38/lb U3O8 continues to be targeted.
  • Health & Safety – Bannerman achieved a lost time injury free 12 months to 30 June 2011.
  • Environmental clearance for linear infrastructure – Bannerman announced yesterday that it has received an Environmental Clearance from the Namibian Ministry of Environment and Tourism for the linear infrastructure proposed to service the Etango Uranium Project, including the access road and telecommunications, power and water services.
  • Namibian minerals policy changes – Following release of proposed changes to Namibia's minerals policy, the Namibian Minister of Mines and Energy confirmed that ownership of existing exploration licences will not be affected.
  • Cash position – Bannerman's cash reserves at 30 June 2011 totalled A$15.3 million.
  • Board change – Effective 27 May 2011, Mr Mason Hills was appointed as a non-executive director representing Bannerman's major institutional shareholder, Resource Capital Funds, following the retirement of Mr James McClements.

Len Jubber, Chief Executive Officer

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 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 feasibility assessment and development of a large open pit uranium operation at Etango. More information is available on the Company's website at www.bannermanresources.com.

Technical Disclosures

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 the Company'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 the Company'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 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.

The Company 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.

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