Extract Resources - Rössing South: Mineralisation on western limb confirmed
with further strong results from Zone 1 and 2, including 73 metres grading
2243ppm U3O8

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

SYDNEY NSW, AUSTRALIA, May 21 /CNW/ - Extract Resources Ltd (ASX/TSX/NSX: EXT), a uranium exploration and development company with projects in Namibia, today announced the latest round of exceptional chemical assay results from the Rössing South mineralized system, part of Extract's world-class Husab Uranium Project.

Aggressive drilling rates continue to underpin the Company's commitment to completing the Rössing South Definitive Feasibility Study and the development of a mine at this globally significant project.

Highlights:

    
    -   19 drill rigs now operating at Rössing South, with the key focus on
        resource definition.

    -   Stand out intercept of 73 metres grading 2243ppm U3O8 with
        mineralisation still open down dip and along strike.

    -   Chemical assay results from multiple drill holes confirm high grade
        mineralisation on the western limb of the Rössing South antiform.

    -   Steady flow of exceptional high grade chemical assays received from
        infill and resource extensional drilling, including:


             --------------------------------------------------
             Hole ID     From       To      Mineralised zones
                           (m)      (m)           (U3O8)
             --------------------------------------------------
             Zone 1
             --------------------------------------------------
             RDD119       348      358       10m @ 1026 ppm
             --------------------------------------------------
             RDD141       151      168       17m @ 2745 ppm
             --------------------------------------------------
             RDD143       329      340       11m @ 1017 ppm
             --------------------------------------------------
             RDD145       371      444       73m @ 2243 ppm
             --------------------------------------------------
             RRC659       238      256       18m @ 1419 ppm
             --------------------------------------------------
             RRC737       261      307       46m @ 1031 ppm
             --------------------------------------------------
             RRC750       176      213       37m @ 2001 ppm
             --------------------------------------------------
             RRC758       157      169       12m @ 1522 ppm
             --------------------------------------------------
             and          192      204       12m @ 1285 ppm
             --------------------------------------------------
             and          222      240       18m @ 1018 ppm
             --------------------------------------------------
             Zone 2
             --------------------------------------------------
             RDD112       289      342       53m @ 1265 ppm
             --------------------------------------------------
             RDD147       378      388       10m @ 1084 ppm
             --------------------------------------------------
             RDD148       325      335       10m @ 1226 ppm
             --------------------------------------------------
             RDD149       368      383       15m @ 1470 ppm
             --------------------------------------------------
             RRC717       261      271       10m @ 1015 ppm
             --------------------------------------------------
             RRC718       242      272       30m @ 1032 ppm
             --------------------------------------------------
             RRC721       137      160       23m @ 1249 ppm
             --------------------------------------------------
             RRC771       185      195       10m @ 1665 ppm
             --------------------------------------------------
    

Resource Definition Update - Zone 1 & Zone 2

Significant drilling rates continue at Rössing South where approximately 1300 drill holes have been completed for 330000 metres of drilling. There are currently 19 drill rigs operating at Rössing South: nine RC rigs; and ten diamond core rigs. The main focus of drilling has been infill resource definition work aimed at converting the Inferred Resource to Indicated. Some extensional, sterilization and exploration drilling is also being completed.

The latest round of chemical assay results have been received from 89 drill holes located throughout Rössing South. Multiple intercepts of high grade mineralization were reported further establishing the continuity of the high-grade, granite-hosted uranium mineralization. Highlights are shown in Figure 1 and a full list of recently received and previously unreported chemical assay results is included in Appendix 1.

Mineralization in Zone 1 remains open down-dip to the east with the high grade results received in this area (e.g. RDD145, 73m @ 2243ppm U3O8) highlighting the significant potential for additional drilling to further increase the size of the current resource.

Exploration Update - Western Limb drilling results

Chemical assay results received for drill holes on the western limb of the Rössing South antiform confirm the presence of high grade uranium mineralization. Figure 1 shows multiple drill holes in this area west of Zone 1, Zone 2 and south of Zone 2 with significant uranium mineralization, including:

    
    -   RRC750, 37m @ 2001ppm U3O8;
    -   RRC717, 10m @ 1015ppm U3O8;
    -   RRC718, 30m @ 1032ppm U3O8; and
    -   RRC771, 10m @ 1665ppm U3O8.
    

The Company is currently drilling out this area for inclusion in the next resource upgrade. Drill holes continue to intersect potentially high grade uranium mineralization, as identified by hand held spectrometer results. Chemical assay results will be reported when available.

Rössing South Feasibility Study Update

Resource Update

Aggressive drilling rates continue to define an updated resource estimate for Rössing South within the third quarter of calendar 2010. The main aim is to upgrade the current Zone 1 and Zone 2 Inferred Resource to Indicated status. The Indicated Resource is expected to form the basis of the DFS mining inventory so that reserves can be defined.

Pilot Plant Testwork

'Proof of design' testwork commenced in the Company's pilot plant in Perth on 22 March 2010. The objectives of this work includes finalising the base case flow sheet, to quantify comminution, leaching, filtration, ion exchange, solvent extraction parameters and to characterize uranium product for marketing purposes. Results have been encouraging and the Company remains confident that the testwork objectives will be met and completed by the end of June 2010.

The Definitive Feasibility Study (DFS) remains on track for completion in the fourth quarter of the 2010 calendar year.

To view Figure 1 and Appendix 1 of the Husab Project - Rössing South Prospect, please visit: http://files.newswire.ca/814/ExtractRes_Husab_updt.doc

About Extract Resources

Extract Resources Ltd is an Australian-based uranium exploration and development company whose primary focus is in Namibia. The company's principal asset is its 100%-owned Husab Uranium Project which contains two known uranium deposit areas, Rössing South and Ida Dome. Extensive exploration potential also exists for new uranium discoveries in the region.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled or reviewed by Mr Martin Spivey, who is a Member of The Australasian Institute of Mining and Metallurgy and Mr Andrew Penkethman who is a Member of the Australian Institute of Geoscientists. Mr Spivey and Mr Penkethman are both full time employees of the Company. Mr Spivey and Mr Penkethman have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Spivey and Mr Penkethman consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.

Reference to hand held spectrometer results refers to use of a Company owned Exploranium, GR-135 Plus or Terraplus RS-125, hand held spectrometer. The uranium values are recorded by placing the unit on the bulk RC sample bags or individual trays of drill core and expressed as parts per million (ppm) eU which is equivalent to ppm U. Results from these units provide an indication of uranium mineralisation; they may also be affected by uranium mobility and disequilibrium. These factors should be considered when interpreting eU information whilst waiting for confirmation chemical assay results.

This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected.

For further information: Jonathan Leslie, Chief Executive Officer/Managing Director, [email protected]; Richard Henning, Investor Relations, [phone], [email protected]