Excellent drilling reports continue to be received from Mindoro Resources" Agata Nickel Laterite Project.

The latest results are from a further 11 drill holes on one long cross section in the northern laterite. The limonite horizon averages 1.01% nickel and 38.47% iron over an average thickness of 2.12 metres. The underlying saprolite horizon averages 1.20% nickel over an average thickness of 5.37 metres.

Mineralization grades and thicknesses meet company expectations, and are in line with requirements for direct shipping grade material for ferro-nickel feedstock for which demand remains strong.

The Agata project has strong competitive advantages with good grades, just 2-3km from tide water with corresponding low haul distance and costs, and only two days shipping from China. Mindoro has also received several expressions of interest in its nickel laterite as potential feedstock for a new generation of HPAL nickel processing plants planned in the region.

The current objective on the Agata northern nickel laterite project is to define 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 ferro-nickel markets of China, India and Korea.

Mindoro has a target production date of the first half of 2008, and would ramp up production to one million tonnes or more per year thereafter, depending on market demand.

The initial drill program covers less than 15% of the area of nickel laterite mineralization mapped to date at Agata.

The iron-rich overburden above the limonite horizon, which averages 1.95 metres thick, also has high iron content of 36.10%, and 0.57% nickel, and has potential for blending purposes. This section covers an east-west distance of more than 500 metres and is still open to the east (and to the north and south), where mineralization is believed to continue for a further 1km.

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