Mineral Deposits Limited
TSX : MDM
ASX : MDL

Mineral Deposits Limited

November 17, 2008 18:12 ET

Mineral Deposits Limited: Sabodala Gold Project-New Reserve Estimate

- Mineable reserve up 16% to 1.63 million ounces - Total resource estimate exceeds 3.5 million ounces - Open pit mine development proceeding on target - Substantial additional potential to expand reserves identified

MELBOURNE, AUSTRALIA--(Marketwire - Nov. 17, 2008) - Mineral Deposits Limited (TSX:MDM)(ASX:MDL) -

SABODALA AND NIAKAFIRI RESERVES

The new mineable reserve for the Sabodala open pit of 1,484,000 ounces at a 0.65g/t gold cut-off, together with Niakafiri at 145,000 ounces, extends the Sabodala Gold Project to 1.63 million ounces with further opportunities to expand the reserves. The total Sabodala mineable reserve for the mining concession is 24.3 million tonnes grading 2.1g/t (Attachment 1). Of the total gold reserves:

- the current mineable (diluted) reserve for the Sabodala deposit comprises an estimated 21.7 million tonnes at an average grade of 2.13g/t gold and compares with the previous estimate in October 2007 of 15.8 million tonnes grading 2.49g/t gold; and

- the mineable open pit reserve estimate for Niakafiri is 2.7 million tonnes grading 1.68g/t gold.

The resource grade model was developed in-house following procedures defined by independent consultants Geosystems International of Florida, USA. The geological block model was interpreted by MDL's geologists on-site. The reserve calculation was recently audited by Geosystems International.

The current mineable ore reserve estimate is based on MDL drill holes and assay data available since project initiation. The drill database (Attachment 2) for the new Sabodala reserve estimate includes a total of 884 drill holes for 132,839 metres representing 123,383 assays. At Niakafiri, 160 holes have been drilled totalling 21,272 metres and 21,452 samples. Historic drill holes are excluded where quality control and quality assurance information is lacking.

The grade estimates as presented in Attachment 1 have been classified as a combination of Measured, Indicated and Inferred Mineral Resources in accordance with CIM Definitions (2005) and JORC (2004) reporting standards.

ADDITIONAL RESERVE POTENTIAL

Undiluted Measured and Indicated resources at Sabodala outside of the ultimate pit(1) design above a 2.0g/t gold cut-off grade stand at 6.7 million tonnes averaging 3.2g/t for 691,000 ounces. This mineralisation sits principally in the down-plunge extension of the NW Shear and Main Flat intersection and peripheral to the pit in the Main Flat zone, where both zones display good continuity of mineralisation. An underground mining scoping study to assess the most economic method of extracting this gold mineralisation is scheduled to commence in December 2008. Attachments 3 and 4 show the extent of this mineralisation beyond the ultimate pit design.

(1)Ultimate pit refers to the maximum value Sabodala pit design based on the new reserve estimate and economic operating assumptions as at November 2008.

Niakafiri

Elsewhere on the main Sabodala mining concession, the Niakafiri deposit remains open at depth and recent drilling results confirm potential for near surface high grade gold zones within a bulk low grade tonnage to the west of the Niakafiri pit. A follow-up drilling plan for Niakafiri West is scheduled for late 2009 to lead into resource definition.

Exploration

On the adjacent MDL projects, exploration drilling is continuing. At Dembala Berola, a 20 hole RC programme for a total of 1,949 metres was completed. Samples have been submitted for laboratory analysis. The programme tested three prospects which are associated with abundant coarse gold at surface and are located in favourable structural and lithological settings. Diamond drilling at Bransan has returned encouraging gold mineralisation associated with silica-albite-pyrite alteration. A follow-up drilling programme is underway at this project which is located some 12 kilometres from Sabodala.

MINING OPERATION

The new Sabodala pit design shown in Attachment 5 is approximately one kilometre in length, 600 metres across and 250 metres deep. Total contained material is 142 million tonnes, including 120 million tonnes of waste and 22 million tonnes of ore to be processed. Optimisation of mining schedules to maximise the value of the Sabodala reserves is underway.

Owner mining continues to perform on budget at Sabodala, constructing the ROM pad with waste and placing ore in preparation for milling. Since production commenced in June 2008, 2.98 million tonnes of material has been mined (Attachment 6). The 2008 target of having 500,000 tonnes of ore on the ROM pad will be achieved before the end of the year with continued mining allowing for the processing of higher grades early in the mining schedule.

The information in this report that relates to Exploration Results is based on information compiled by MDL's Mining Operations Manager, Bruce Van Brunt MSc Mining Engineering, who is a member of The Australasian Institute of Mining and Metallurgy and is also a registered professional geologist in the State of Washington, USA. Mr Van Brunt has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken. He is qualified as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and as defined in NI43-101. Mr Van Brunt has consented to the inclusion of this information in the form and context in which it appears in this report.

To view Attachment 1, please visit the following link:

http://media3.marketwire.com/docs/MDMattach1.pdf

To view Attachment 2, please visit the following link:

http://media3.marketwire.com/docs/MDMattach2.pdf

To view Attachment 3, please visit the following link:

http://media3.marketwire.com/docs/MDMattacg3.pdf

To view Attachment 4, please visit the following link:

http://media3.marketwire.com/docs/MDMattach4.pdf

To view Attachment 5, please visit the following link:

http://media3.marketwire.com/docs/MDMattach5.pdf

To view Attachment 6, please visit the following link:

http://media3.marketwire.com/docs/MDMattach6.pdf

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