Teknomining Plc
LSE : TEKP

October 27, 2011 02:00 ET

Encouraging Drilling Update

                                                                                   27 October 2011
                                                                                                  
                                          TEKNOMINING PLC
                                 ("Teknomining" or "the Company")
                                          (PLUS-SX: TEKP)
                                                                                                  
                                    ENCOURAGING DRILLING UPDATE
Two new Deep IP/Resistivity and Ground Magnetic Reports indicating the presence of a possible
Porphyry Anomaly and drilling reveals further commercial grades of Nickel & Cobalt

Teknomining,  the Dublin-headquartered mining and exploration company, is pleased to  provide  the
Market  today  with  the  following  positive update with regard  to  its  current  activities  in
Diyarbakir, Turkey.

Highlights:
        
    *        Kulp 200806366 licence. Deep Induced Polarisation ("IP")/Resistivity and Ground Magnetic
        Report suggests the presence of a possible Porphyry Anomaly with an estimated size of 48 million
        m3;
    
    *        Kulp  200800729 licence. Deep IP/Resistivity and Ground Magnetic Report suggests  the
        presence of a possible Quartz Porphyry and/or intrusive Anomalies containing possible Sulphide
        mineralization zones with an estimated size of 604 million m3;
    
    *        Two  further drill locations have now been completed  the results of which have  been
        independently analysed, reporting commercial grades of Nickel/Cobalt found in both with an average
        grade of nickel greater than 2200ppm (0.22%);
    
    *        Consistent existence of traces of Nickel, Cobalt, Copper, Chromium, Iron,  Magnesium,
        Manganese, Titanium, and Zinc in all of the five drill holes analysed; and
    
    *        Copper  was  found  at  depths  of 60m, 110m, 120m and 140m.  These  values  indicate
        mineralization lenses related with a possible Porphyry Body at deeper levels.
    
 Michael Holden, CEO of Teknomining, commented:

"The  results  from the Company's two October Deep Geophysical IP/Resistivity and ground  Magnetic
Surveys  to a depth of 600 meters, together with the results from all our cores analysed to  date,
reaffirms  the  Board's belief of the existence of high levels of commercial grades  of  Nickel  &
Cobalt.  Results  also  confirm the real possibility of a large Copper Porphyry  Body  along  with
Chromium,   Iron,   Magnesium,   Manganese, Titanium, and Zinc  at  its  second  Operating  mining
licence  area  in  the Province  of  Diyarbakir,  Turkey. This, coupled with the current price  of
Nickel, Cobalt and Copper, provides the Company with an extremely valuable exploration asset.

Following  on  from  the  successful three previous surveys carried out  by  CFT  Engineering  Ltd
("CFT"),  Teknomining  commissioned their team at the beginning of June  2011  to  carry  out  two
further deep Geophysical IP/Resistivity and Ground Magnetic Surveys to a depth of 600 meters.

CFT  has  recommended, on the basis of the new Surveys and the recent core analysis results,  that
the  Company refocuses its drilling strategy by putting the remaining 1st phase drilling programme
on hold and secure the services of a suitable drilling company that has the capability of drilling
to  a  new  depth of 600+Meters in the new locations as indicated on the two recent  Reports.  The
Board  is  now  in  agreement with this recommendation and is actively seeking  suitable  drilling
companies."


Deep Geophysical IP/Resistivity and ground Magnetic Surveys

In  accordance with the planned exploration programme, set out on admission to PLUS  Markets,  and
the subsequent successes of the previous three Geophysical Surveys which were taken to a depth  of
240  meters,  the  Board  of Teknomining has commissioned CFT to carry  out  a  further  two  Deep
Geophysical  IP/Resistivity and ground Magnetic Surveys to a depth of 600 meters in  both  of  its
operational  licence  areas; namely licence reference numbers 200806366 and 200800729  located  in
Kulp, Diyarbakir, Turkey.

A brief summary of the two reports is as follows:

October 2011 Kulp 200806366 licence. Deep IP/Resistivity and Ground Magnetic Report.

Four  profiles  were planned in this survey covering a total length of 8.675 km.   The  length  of
planned  profiles  were  2.95 km, 2.35km, 2.25 km, with 1.125km of lineation  being  E-W.  Spacing
between  profiles  was  taken  as 100m-150m with readings taken at every  25-50-75-100m  on  these
profiles.
 
The  report  suggests  the presence of a possible Porphyry Anomaly with an estimated  size  of  48
million m3.
 
October 2011 Kulp 200800729 licence. Deep IP/Resistivity and Ground Magnetic Report.
 
Four  profiles  were planned in this survey covering a total length of 10.3 km. Each  profile  was
between 2.2 and 3.0km long, with lineation being N-S. Spacing between profiles was taken as  100m-
150m, with readings taken at every 25-50-75-100m on these profiles.
 
The  report  suggests  the  presence of a possible Quartz Porphyry and /  or  intrusive  Anomalies
containing possible sulphide mineralization zones with an estimated size of 604 million m3.
  
Latest Core Drilling Results

Referring  to  the  Company's previous drilling update, dated 21st July  2011,  in  which  it  was
announced  that  commercial grades of Nickel were found at all levels from independently  analysed
cores  taken  from  these  three drilling locations, two further drill  locations  have  now  been
completed and independently analysed. The previous three core drill holes as stated above, form  a
triangular shape covering an area of 375.1 hectares (375,100m2).
 Analysis  of the results indicate the following:

 *   Commercial grades of Nickel/Cobalt found at all levels (testing was carried out at depth
     intervals 10 meters);
 *   Average grade of nickel is greater than 2200ppm (0.22%);
 *   Given  technological  advances in the processing of Nickel,  it  is  expected  that  the
     identified "Sulphide type Nickel beds" can be operated above a cut-off grade of 500ppm;
 *   Nickel/Cobalt ratio averages at 22:1;
 *   Consistent  existence  of traces of Nickel, Cobalt, Copper, Chromium,  Iron,  Magnesium,
     Manganese, Titanium, and Zinc in all of the five drill holes analysed;
 *   Copper  was  found  at  depths  of  60m, 110m, 120m  and  140m.  These  values  indicate
     mineralization lenses related with a possible Porphyry Body at deeper levels; and
 *   High  Resistivity & mid IP values with very high Magnetic values have been detected  and
     assuming  these match as is expected in our case, the possibility of Porphyry Body is likely to
     increase.


CFT Engineering  Ltd  reports  will  shortly  be  uploaded  onto  our  Teknomining  PLC  website
www.teknomining.com

             The directors of the issuer accept responsibility for this announcement.


Contact Details:

Teknomining Plc
Michael Holden, Managing Director
Mob. Ireland: +353 87 249 10 22
Mob. Turkey: +90 533 241 55 50
Email: Teknomining@gmail.com
Website: www.teknomining.com

Yellow Jersey PR Limited
Dominic Barretto, Managing Director
Mob. UK: +44 (0) 7768 537 739
Email: Dominic@yellowjerseypr.com


About Teknomining

Teknomining Plc is engaged in the investigation, exploration, extraction, processing and marketing
of  industrial and metallic minerals such as copper, iron-ore, nickel, cobalt, gold, aluminium and
chromium deposits.

The  Company,  through its wholly owned Turkish subsidiary, had initially secured two  exploration
licences over land areas in the province of Diyarbakir, Eastern Anatolia, Turkey covering an  area
of  c.10.9km.sq  and currently has upgraded these to two full Operation Licences.  These  licences
grant  the Company certain rights to explore for and exploit "4th Group Minerals" as defined under
Turkish mining law.

The  Company announced on 23 May 2011 that through its wholly owned Turkish subsidiary it had been
awarded  full  rights to three additional Exploration Licences covering an area  of  c.54.07km  sq
(5,407 hectares) taking the total number of licences under management to five - with two Operation
Licences and three Exploration Licences covering a total area of 64.97 km sq (6497 hectares).

To date the Company has undertaken five major Geophysical Ground Magnetic, Resistivity and Induced
Polarisation (IP) Surveys which have shown the presence of strong positive anomalies indicative of
magnetite's with significant potential reserves in excess of 25 millions tonnes of high grade iron
ore.

The Resistivity and IP surveys have shown the presence of strong positive anomalies. Four examples
were given which indicate massive sulphide and silicated sulphide anomalies. Initial test drilling
has indicated the presence of Nickel, Copper, Cobalt and other metallic minerals.

The  latest  October  2011 Kulp 200806366 licence Deep IP/Resistivity and Ground  Magnetic  Report
indicates the presence of a possible Porphyry Anomaly with an estimated size of 48 million M3.

The  latest  October  2011 Kulp 200800729 licence Deep IP/Resistivity and Ground  Magnetic  Report
indicates  the  presence  of  a  possible Quartz Porphyry and or  intrusive  Anomalies  containing
possible Sulphide mineralization with an estimated size of 604 million M3.

The  Groups  short  term strategy and work programme is to complete further exploration  and  test
drilling  to  confirm the location and level of reserves initially in its two Operational  Licence
areas  and to prepare a detailed strategy to commence the extraction of its huge reserve  of  high
quality iron ore.

Contact Information

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