Extract Resources Limited
TSX : EXT
ASX : EXT

Extract Resources Limited

February 25, 2008 08:53 ET

Extract Resources Ltd Announces Update on Rossing South Uranium Exploration

SOUTH PERTH, WESTERN AUSTRALIA--(Marketwire - Feb. 25, 2008) - Extract Resources (TSX:EXT)(ASX:EXT) is pleased to provide an update on exploration progress at their Rossing South discovery, part of the wholly owned Husab Uranium Project in Namibia.

SUMMARY:

- First pass reconnaissance drilling on three lines 1.6 kilometres apart indicates that uranium mineralisation extends over a zone of at least 3.2 kilometres along regional strike.

- Width of mineralised system at least 160 metres on discovery Line 1 and anomalism over 500 metres wide on Lines 2 and 3.

- Angled core holes on discovery line confirms geometry of mineralised system with broad zones of anomalous uranium mineralisation indicated by hand held spectrometer readings taken from drill samples.

- Three drill rigs now operating at Rossing South to follow up on discovery results.

The initial Rossing South discovery holes are approximately 1.5 kilometres from Extract's northern boundary, which it shares with the world-class Rossing uranium province, and 7 kilometres south of the Rossing Mine itself. The Rossing South target area extends for 15 kilometres onto Extract's licence, and is covered by desert sands.

Two core holes have been drilled beneath the discovery holes, and a scissor RC hole. This additional drilling has helped confirm the geometry of the mineralised alaskites beneath the Namib Desert cover sequence. These holes were designed to follow up on the discovery results (ASX release 1 February 2008) which included 40 metres @ 240 ppm U3O8 (including 8 metres @ 998 ppm U3O8), and 100 metres @ 265 ppm U3O8 (including 69 metres @ 321 ppm U3O8).

Significantly, both original discovery holes ended in mineralisation indicating that the mineralised system is more extensive than the initial assay results suggest. Reconnaissance drilling has also been completed testing the bedrock on traverse lines (2 and 3) 1.6 and 3.2 kilometres to the south and along the interpreted strike. Anomalous zones of uraniferous alaskite have been identified, and deeper drilling into these zones is now underway. Rossing South is shaping up as a very large mineralised system with uraniferous alaskites and sediments intersected on Lines 2 and 3 extending over 500 metres in width.

DETAILS

Reconnaissance exploration drilling has now been completed on three lines of drilling with lines 1,600 metres apart and holes spaced on 80 metre centres. This drilling has been aimed at testing a magnetic low feature interpreted to represent the Khan and Rossing Formation unconformity surface. The uranium mineralised alaskites at the Rossing Mine and around Ida Dome generally occur proximal to this surface. The reconnaissance exploration drilling has intersected several zones of anomalous uranium mineralisation with the main zones apparently continuous along regional strike, as interpreted from first vertical derivative magnetic data (See Appendix 2).

The anomalous uranium mineralisation has been detected using a Exploranium, GR-135 Plus, handheld spectrometer. This unit records uranium, thorium and potassium data. The uranium values are recorded as parts per million (ppm) eU which is equivalent to ppm U. Use of the hand held spectrometer on bags of drill cuttings from the Husab Uranium Project has indicated that the unit under-reports uranium grades within the zones of uranium mineralisation with respect to the more conclusive chemical assay results. So whilst an indication of uranium mineralisation can be gained from using the hand held spectrometer, chemical assays are required to fully quantify the significance of the uranium mineralisation intersected by drilling. These results with be released when available.

Angled, deeper holes have yet to be drilled on Lines 2 and 3, but exceptional hand held spectrometer results have been returned from the vertical reconnaissance holes with individual metre samples returning values up to 2,520 ppm eU (0.25%eU). The most significant intersection so far from the Rossing South hand held spectrometer results is 49m @ 337 ppm eU on Line 3 (See Appendix 2). The tenor of these results exceeds any previously encountered on the discovery section (Line 1, 3.2 kilometres to the north) by a considerable margin. RC drilling has also commenced on a fourth line 1.6 kilometres south of Line 3.

The zone of anomalous uranium mineralisation intersected on Lines 2 and 3 is over 500 metres wide. The potential significance of these results becomes apparent when compared to the original vertical discovery holes drilled on Line 1 which indicated a mineralised zone of at least 160 metres in width, which was subsequently confirmed by deeper, angled drilling.

One core hole has been completed on the discovery section (Line 1), at Rossing South, and a second hole is in progress. The drill core from these holes indicates that the mineralised alaskites are steeply dipping to the east (see Appendix 3). The uranium mineralisation is hosted within multiple alaskite dykes and on the margins of gneiss and schist contacts. Abundant secondary uranium mineralisation, in the form of uranophane, has also been noted. The alaskite zone hosting the uranium mineralisation identified on Line 1 has been interpreted as being approximately 160 metres wide, with attractive grades being returned from assays carried out to date. Early indications are that the uranium grades being returned from the discovery section, at Rossing South, are consistent with those obtained from the nearby Rossing Mine, and may be somewhat higher than the average grades of other alaskite hosted uranium deposits in the Erongo Region.

FUTURE STRATEGY

Given the continued success of exploration at Rossing South three drill rigs have been dedicated to the Rossing South project area. These include two RC and one diamond core rig. Additional reconnaissance drilling will also be completed south of Line 3 and north of Line 1. Drilling on Line 4 has already commenced. The Company will also continue to explore the remainder of the 15 kilometres of prospective strike as interpreted from the magnetic data.

The Company considers Rossing South has excellent potential to host a significant uranium deposit under the sand cover and early progress has reinforced this view. Once angled holes have been completed on Lines 2 and 3, to refine the geological model, the Company will have done much of the initial work required to define an exploration target that it believes will represent a major mineralised system.

Competent / Qualified Persons Statement

The information in this report that relates to Exploration Results 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.

Forward Looking Statements

This release contains certain forward looking statements. Forward looking statements are subject to a variety of risks and uncertainties which are not able to be controlled by the Company and cannot be reliably predicted. Actual events or results may be materially different from those that are anticipated in any forward looking statements.

Hand Held Spectrometer Results

The anomalous uranium mineralization described in this report has been detected using an Exploranium, GR-135 Plus, handheld spectrometer with readings taken on bags of drill cuttings and on cut core at surface. Company experience with such readings has been that the unit generally under-reports uranium grades. Whilst the Company anticipates that such readings will continue to give a reasonable indication of expected uranium content, more conclusive results are only obtained from chemical assay testing. Assay results for current drilling will be announced in future releases.

Assay Results

Previously reported assay results quoted in this release are all extracted from independent accredited analysis services provided by Genalysis Laboratory Services, Perth.

To view a map of Appendix 1, please click on the link below:

http://media3.marketwire.com/docs/ext1.pdf

To view a map of Appendix 2 - Rossing South Location Plan, please click on the link below:

http://media3.marketwire.com/docs/ext2.pdf

To view a map of Appendix 3 - Rossing South Line 1 Drill Hole Section, please click on the link below:

http://media3.marketwire.com/docs/ext3.pdf

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