Mindoro Resources has received further positive drilling results from its Agata nickel laterite project in the Philippines.

A further 12 drill holes on one long drill cross section of the northern laterite zone at Agata show that the limonite horizon averages 1.17% nickel and 40.06% iron over an average thickness of 1.65 metres. The underlying saprolite horizon averages 1.29% nickel over an average thickness of 7.79 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 2-3km from tide water, with corresponding low haul distance and costs, and only two days shipping from China.

The 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 then 15% of the area of nickel laterite mineralization mapped to date at Agata.

The Environmental Impact Statement, a prerequisite to the grant of an Environmental Compliance Certificate (the ECC), has been filed with the Environmental Management Bureau of the Department of Environment and Natural Resources of the Philippines. Shortly after receipt of the ECC, the company plans to begin construction of the mine haul roads and facilities, which is estimated to take about three months, subject to weather conditions and availability of materials and labour.

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