Extract Resources - Rossing South - New Exploration Target Statement

SOUTH PERTH , Western Australia , Oct. 26 /CNW/ - Extract Resources (the "Company"), a Uranium exploration and development company with projects in Namibia , Africa , today announced an exploration target for areas of its Rossing South project not included in its current resource estimates.

From these additional areas the Company has set an initial target in the range of between 185 and 285 million pounds U(3)O(8).

Under Canadian NI43-101 guidelines, target statements and different categories of resources are not able to be accumulated or stated as one figure and the Company retracts any previous statements that may have inadvertently included such an accumulated number, this includes the exploration target set out in its October 9, 2009 press release.

For clarity, a summary of the current status of the Rossing South project is as follows:-

    
    -   Indicated Resources - 24 million pounds U(3)O(8).
    -   Inferred Resources - 243 million pounds U(3)O(8).
    -   Current Exploration Targets - 185 to 285 million pounds U(3)O(8).
    

The current resource for Rossing South, following JORC Code and NI43-101 guidelines, at 100 ppm U(3)O(8) cut-off is shown in the following table (ASX & TSX release 22 July 2009).

    
    -------------------------------------------------------------------------
    Rossing                            Tonnes           Grade        U(3)O(8)
    South Total       Category       (million)   (ppm U(3)O(8))       (M.lbs)
    -------------------------------------------------------------------------
    Zone 1            Indicated            21             527             24
                -------------------------------------------------------------
                      Inferred            126             436            121
    -------------------------------------------------------------------------
    Zone 2            Inferred            102             543            122
    -------------------------------------------------------------------------

                       Note: Figures have been rounded.
    

Extract Resources Chairman, Mr. Steve Galloway , said "The rapid growth of the Rossing South resource and the Husab Project as one of the world's largest uranium projects is continuing, with ongoing resource definition drilling in Zones 1 and 2 and exploration drilling further south continuing to define significant new zones of mineralisation. This continued success has resulted in the Company re-evaluating the exploration potential and defining a new exploration target of 185 - 285 million pounds U(3)O(8). This figure is in addition to the resources already defined at Zones 1 and 2."

"The Company is committed to the development of one of the largest uranium mines in the world that will provide significant returns to share-holders and deliver huge benefits to the Namibian nation for decades to come."

Exploration drilling to date at Rossing South has been completed over 8 kilometres of a 15 kilometre long target of covered (but potentially uranium bearing) stratigraphy between the licence boundary and the northern termination of the Ida Dome (Figure 1). Continued exploration and resource definition drilling between Salem and Zone 1 is a priority for the Company (Figure 1).

Infill drilling at Rossing South is currently focused on Zone 1 and Zone 2 to upgrade the resource status with the aim of defining reserves for the ongoing Feasibility Study. Exploration drilling is also continuing south of Zone 2. Key exploration target areas include:

    
    1.  The known Zone 1 and Zone 2 trend where the majority of the uranium
        mineralisation defined to date has been on the east limb of the
        Rossing South antiform (Figure 1 and 2);
    2.  South of Zone 2 (Figure 2);
    3.  The west limb of the Rossing South antiform to the west of Zone 1 and
        Zone 2 (Figure 1 and 2);
    4.  The west limb of the Rossing South antiform, south of Zone 2 (Figure
        1 and 2);
    5.  The Rossing trend approximately 1.0 - 2.0 kilometres west of the Zone
        1 and 2 trend (Figure 1 and 2); and
    6.  Other dome related dilational (structural openings) sites identified
        from the recently acquired 50 metre line spaced magnetic survey.
    

The Company continues its significant commitment to realizing the full potential of the Husab Project with 11 drill rigs currently operating on site. Additional rigs will be sourced over the coming months to accelerate drilling progress. However, given the massive size of the mineralised system defined thus far, exploration efforts are expected to continue for some time.

The following internal target exploration parameters have been established for Rossing South, in addition to the substantial resource base that has already been defined. These are based on the knowledge gained from completing 827 drill holes for 189,804 metres of drilling at Rossing South since April 2007 . This information has been evaluated along with field mapping in the areas outcropping, and several geophysical data sets such as SpotMap data and the recently acquired 50 metre line spaced magnetic data.

    
    Rossing South - New Conceptual Exploration Target
    -------------------------------------------------------------------------
    Area   Tonnage   Tonnage     Grade      Grade      Uranium       Uranium
          Estimate  Estimate  Estimate   Estimate      Content       Content
             Lower     Upper     Lower      Upper        Lower         Upper
          Scenario  Scenario  Scenario   Scenario     Scenario      Scenario
          (Million  (Million      (ppm       (ppm  (Million lb   (Million lb
             tonne)    tonne) U(3)O(8))  U(3)O(8))    U(3)O(8))     U(3)O(8))
    -------------------------------------------------------------------------
    Rossing
     South     210       260       400        500          185           285
    -------------------------------------------------------------------------

         Note: The Exploration Target potential quantity and grade is
             conceptual in nature, as there has been insufficient
         exploration to define a Mineral Resource and it is uncertain
         if further exploration will result in the determination of
               a Mineral Resource (Figures have been rounded).
    

Grade modelling was based on indications from available chemical assay data. A bulk density value of 2.65 has been assumed, and is well supported by current knowledge. The exploration target is presented within ranges of tonnage and grade, and occurs between the surface and approximately 400 metres vertical depth. All zones of mineralisation identified thus far remain open along strike and at depth.

    
    To view Appendix 1: Husab Project, Figures 1 and 2 please visit:
    http://files.newswire.ca/814/Extractappendix1026.pdf
    

About Extract

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

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: Steve Galloway, Chairman; Richard Henning, Investor Relations, [email protected]