Bannerman Resources Limited
TSX : BAN
ASX : BMN

Bannerman Resources Limited

May 02, 2008 09:25 ET

Bannerman Resources Provides Market Update

PERTH, AUSTRALIA--(Marketwire - May 2, 2008) - Bannerman Resources Ltd (TSX:BAN)(ASX:BMN) ("Bannerman" or the "Company"), an Australian-based uranium mine development company, is pleased to report on corporate and project activity to date. The following items are excerpts from the first quarter activity report available on the Company's website, www.bannermanresources.com.

Exploration Drilling Activity

Goanikontes Anomaly A continues to be the focus of drilling activity. There are three reverse circulation (RC) drill rigs active at Anomaly A drilling infill holes on a 50m x 50m grid in areas identified during the resource update that require more drilling. During the first quarter the RC programme completed 99 holes for 30,152m bringing the total number of RC holes drilled at the project to 333 holes for 93,072m.

One further RC rig has recently been mobilised, and another is on its way, to commence exploration for the first time over other targets identified away from Anomaly A in the project.

Diamond drilling also continues at Anomaly A with two diamond core rigs. During the first quarter, 11 holes were drilled for 4,958m bringing the number of diamond drill holes drilled at the project to date to 34 holes for 12,887m.

Lab results are still being received and a table of the results that have been generated during the quarter are available on the Company website (www.bannermanresources.com).

As planned, exploration drilling has commenced on targets identified beyond the Goanikontes' Anomaly A area. To start, eight holes were drilled into the southern end of the Oshiveli trend where it encroaches in to the Anomaly A area. Results from these holes are pending. As well, the Company has sourced another RC drill rig which has been mobilised to the Rossingburg Alaskite trend and will commence drilling during the first week of May.

During the next reporting period, drilling is also planned to commence at Ompo concurrent with the Rossingburg drill program.

The increased work load at the project and the expanding nature of the Company's activity in Namibia has lead to the procurement of larger office space and the establishment of a sample preparation laboratory in Swakopmund.

The laboratory is being built by an independent laboratory firm for the sole use of the Company. It is expected that this facility will greatly expedite the processing of drill sample results which to date has been a major constraint on advancing the project activities.

Namibia Power and Water

Namibia imports almost half its power from the South African power company Eskom. With the growing requirements of the South African economy, there is an increasing likelihood that NamPower will not receive its future capacity requirements.

Eskom has indicated that load shedding will be imposed on Namibia and NamPower has prepared rolling schedules to forewarn its customers of planned load shedding periods.

It is important to note that with the onsite production of sulphuric acid the Company expects to produce approximately 70% of its own power requirements and therefore its reliance on power from Nampower should be greatly reduced.

Further, diesel fired generators will be reviewed as part of the feasibility study to anticipate NamPower's restrictions and try to minimize their effect on the proposed operation.

NamWater, Namibia's national water utility, announced plans to develop a desalination plant which will produce a total of 25 Mm3 pa of desalinated water.

Construction of the new desalination plant commenced in February at Wlotzkasbaken, located approximately 38km north of Swakopmund on the Namibian coast. Commissioning of the NamWater facility is expected to commence in the second half of 2009 with water available in the first quarter 2010.

Bannerman Corporate Summary

The Company has remained focused on its objective to progress the project in line with an aggressive schedule. The Company has completed the 100m x 50m drilling at Anomaly 'A' and an expanded drilling program is currently underway with six drill rigs.

The Company is well financed to complete all planned exploration and for the Bankable Feasibility Study.

Expanded exploration will continue over the next few months, with results expected to be announced through the summer. The Company will test a number of the other identified prospects with a view towards defining targets that will become an extensive project pipeline.

The expanding nature of the Company's business has lead to the establishment of a sample preparation laboratory in Swakopmund. This lab will be focused on analysing samples for Bannerman's Namibian projects and should expedite the process.

The Company continues to build a corporate team with the addition of a new director and COO both bringing major mining company experience and perspective. The Company has attracted directors and senior professionals of high standards and experience to ensure that the Company operates at a level commensurate with industry best practice and has the requisite abilities to take the Company through to becoming a major producer of uranium.

About Bannerman

Bannerman Resources Limited is an emerging uranium producer with interests in two properties in Namibia and a number of properties in Botswana and Australia. Its principal and most significant asset is its 80% interest in the Goanikontes project located in Namibia and situated on a trend southwest of the Rio Tinto Rossing uranium mine.

Bannerman is currently focused on accelerating the development of the Goanikontes uranium mine project and a bankable feasibility study is planned for early 2009. The company expects to bring its Goanikontes deposit into production by 2011.

A.B.N. 34 113 017 128

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