Results from drilling at Mindoro Resources" Agata nickel laterite project in the Philippines are exceeding initial expectations and management considers they form a sound basis for fast-tracking the project.

Mindoro has received results from a further 13 drill holes on two drill cross sections. For section 9950N the limonite horizon averages 1.15% nickel and 42.16% iron over an average thickness of 7.83 metres. For section 10200N, 250 metres to the north, the limonite horizon averages 1.22% nickel and 42.02% iron over an average thickness of 4.58 metres. These grades exceed requirements for direct shipping ore for nickel pig iron production in the Asia-Pacific region.

The underlying saprolite horizon on section 9950N averages 1.24% nickel over an average thickness of 6.54 metres, while for section 10200N the saprolite horizon averages 1.17% nickel over an average thickness of 4.50 metres. Mineralization thicknesses exceed expectations and tonnage of material greater than 1% nickel is expected to be nearly double the original target projection for these two sections.

Five coring drill rigs are operating on the project, with the objective of defining a NI 43-101 compliant resource adequate, initially, for three to five years of production at a rate of 500,000 to 700,000 wet metric tonnes per annum of direct shipping-grade material for the very high demand ferro-nickel markets of China, India and Korea.

Mindoro has a target production date of the first half of 2008. Haul road designs have been completed, and the Environmental Compliance Certificate is in progress.

The Agata nickel laterite prospect is in the Surigao Gold District, northern Mindanao, Philippines. There are several nickel laterite mines already in production in the Surigao District, providing direct shipping-grade ore to markets and processing plants in China, Japan, Korea and Australia.