Extract Resources Limited
TSX : EXT
ASX : EXT

Extract Resources Limited

January 28, 2008 20:12 ET

Extract Resources Limited (EXT) Announces Massive Uranium Intersection from Garnet Valley

SOURTH PERTH, AUSTRALIA--(Marketwire - Jan. 28, 2008) - Extract Resources (TSX:EXT)(ASX:EXT) is pleased to announce an update on the resource drilling program at Garnet Valley on their wholly owned Husab Uranium Project in Namibia.

- Diamond drill hole GDD012 intersected 125 metres grading 1,344 ppm U3O8

- Includes very high-grade zone of 31 metres grading 4,477 ppm U3O8

- Which also includes a bonanza grade zone of 3 metres grading 44,601 ppm (4.46%) U3O8

Chemical assays have been returned from diamond drill hole GDD012, drilled within the Garnet Valley section of the 5 kilometre long Ida Trend. Results from this hole include an outstanding intersection of 125 metres grading 1,344 ppm U3O8 (1.344 kg/t, or 0.1344% U3O8). Within this, a very high grade zone of 3 metres grading 44,601 ppm (4.46%) U3O8 is unusual for "Rossing style" alaskite hosted primary uranium mineralization. This zone was characterized by a silicified, hydrothermal breccia that contained abundant smokey quartz.

The GDD012 intersect is unusually high for the Garnet Valley area and it should be noted that its influence on the resource model will be limited until closer spaced drilling around this hole can be completed. Furthermore, the significance of the very high grade (4.46% U3O8) zone will need to be investigated in much more detail, with a more intensive drilling pattern required to determine its extent.

21 deep core holes have now been completed at Garnet Valley for 6,900 metres of drilling. Chemical assay results have only been received from 8 of these holes with spectral measurements carried out on the drill core, with a hand held spectrometer, indicating that uranium mineralization continues to be intersected. This (diamond) drilling has only tested 1.2 kilometres of the Garnet Valley strike extent that RC drilling has indicated is still open over at least 2.2 kilometres. One diamond drill rig continues to drill the northern extension of Garnet Valley, with another rig to be allocated to completing deeper holes further south.

Overall assay results continue to indicate that uranium grades are being maintained or enhanced at depth, with intersection widths showing a tendency to increase substantially with increasing depth. Drilling intersections for these holes are regarded as being approximately true width.

The outstanding results from GDD012 are in addition to the previously reported high grade RC results (ASX release 23/01/2008) which included: 50 metres grading 494 ppm U3O8; 37 metres grading 459 ppm U3O8; and 32 metres grading 331 ppm U3O8. Hole GDD012 was collared 560 metres south of the previous best diamond core result reported (ASX release 27 Nov 2007) from hole GDD004 (86m @ 350 ppm or 0.350 kg/t) and continues to extend the mineralized zone along strike to the south.

RESOURCE MODELLING

Extract commenced a 12 month, 60,000 metre, resource definition program on the seven Ida Dome prospects in June 2007. At the end of December 2007, approximately 22,000 metres of drilling had been completed. Most of this drilling has been concentrated on Garnet Valley. All seven targets were identified in the Scoping Study release (19 October 2007), and were projected to 100 metres depth (see table below).

The Company was intending to generate a resource statement for Garnet Valley next week, based on drilling and assays completed up to mid-December 2007. However, given the significance of these recent holes, the resource model will be extended to incorporate this drill hole data which will delay completion of this maiden resource estimate. Additional assay results are also pending for Garnet Valley, and the drilling program continues.

It is expected that the original resource target of 15 m.lbs for Garnet Valley (upper range) will be exceeded after all results have been received, due to the much deeper extensions evident from the program to date.



IDA DOME Exploration Targets from Scoping Study
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Target area Tonnage
range Grade range Grade range Grade range Metal range

Prospect M tonnes lb/t U3O8 kg/t U3O8 ppm U3O8 M lb U3O8
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Garnet Valley 22 - 25 0.4 - 0.6 0.18 - 0.27 180 - 270 8.8 - 15.0
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Hook 3 - 4 0.4 - 0.6 0.18 - 0.27 180 - 270 1.2 - 2.4
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Swakop West 4 - 5 0.4 - 0.6 0.18 - 0.27 180 - 270 1.6 - 3.0
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Ida Central 5.5 - 6.5 0.4 - 0.6 0.18 - 0.27 180 - 270 2.2 - 3.9
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Holland's Dome 10.5 - 11.5 0.7 - 0.9 0.32 - 0.41 320 - 410 7.3 - 10.3
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Ida East 5.5 - 6.5 0.4 - 0.6 0.18 - 0.27 180 - 270 2.2 - 3.9
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New Camp 3.5 - 4.5 0.4 - 0.6 0.18 - 0.27 180 - 270 1.4 - 2.7
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Total 54 - 63 0.4 - 0.6 0.20 - 0.30 200 - 300 24.7 - 41.2
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Some resource definition drilling has also been completed at the Ida Central and New Camp prospects. RC drilling has just commenced at the Hook prospect and will commence at Holland's Dome in February 2008. The current drilling programme will continue at Garnet Valley through to April/May.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Martin Spivey, who is a Member of The Australasian Institute of Mining and Metallurgy and Mr Andrew Penkethman who is a Member of the Australian Institute of Geoscientists. Mr Spivey and Mr Penkethman are both full time employees of the company. Mr Spivey and Mr Penkethman have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking 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'. Mr Spivey and Mr Penkethman consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.

APPENDIX 1:

TABLE OF NEW RESULTS

Husab Uranium Project: Garnet Valley Drilling Results

Uranium intersections greater than 0.1 kg/t U3O8 over drill hole intersection widths of not less than 2 metres down hole width:



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Hole_id Northing Easting Azi_True Dip From To Width Grade Grade
UTM UTM (deg) (deg) (m) (m) (m) kg/t lb/t
WGS84 WGS 84 U3O8 U3O8
33S 33S
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GDD0008 7483466 500889 300 -60 78 97 19 0.227 0.501
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111 128 17 0.326 0.719
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222 224 2 0.205 0.451
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259 285 26 0.140 0.308
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GDD0012 7483353 500917 300 -60 37 39 2 0.227 0.499
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156 281 125 1.344 2.963
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including 156 197 41 0.384 0.846
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including 212 238 26 0.467 1.030
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including 250 281 31 4.477 9.870
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which
includes 276 279 3 44.601 98.327
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Notes:

- Analyses on half sectioned NQ (50mm) core by Genalysis Laboratory Services, Perth. Uranium assays were carried out by Four Acid Digest/MS (Method AT/MS).

- Metal values (U) have been converted to oxide values (U3O8) using a factor of 1.179, and expressed as kg/t U3O8. Note that 100 ppm U3O8 is equivalent to 0.1 kg/t U3O8, which is 0.01% U3O8.

- Assays expressed as kg/t U3O8 have been converted to lb/ tonne by multiplying by 2.2046.

- All results are from the Garnet Valley panel of the Ida Trend.

- Intersection widths are estimated to be approximately true width.

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