Mindoro Resources has had further positive drill results from the northern laterite zone on the Agata nickel and iron project in the Philippines.

The limonite horizon averages 0.98% nickel and 43.51% iron over an average thickness of 3.51 meters. The underlying saprolite horizon averages 1.18% nickel over an average thickness of 4.88 metres.

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

The Agata project has competitive advantages, in that it is 2 to 3km from tide water, with corresponding low haul distance and costs, and only two days shipping from China.

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.

Results from section 10350N are comparable with previously reported drill sections. The iron-rich overburden above the limonite horizon also has high iron content of 41.96%, and 0.66% nickel, and has potential for blending purposes. This section covers an east-west distance of 600 metres and is open to the east, where mineralization is believed to continue for a further 1km. The nickel and iron grades of the limonite horizon are robust, consistent between all nine sections reported to date, and are in line with grade requirements for ferro-nickel feedstock.

The Environmental Impact Statement is nearing completion and will be submitted in the near future. Mine planning is at an advanced stage.