Extract Resources - Rössing South Project Update

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SYDNEY NSW, AUSTRALIA, June 17 /CNW/ - Australian-based uranium mine development and exploration company, Extract Resources Limited (ASX/TSX/NSX: EXT) ("Extract or 'the Company) is pleased to report that work on advancing the Rössing South Project development is progressing well and provides the following update.

Resource Update

The Rössing South resource upgrade remains on track for Q3 of calendar year 2010. Since the maiden Zone 2 resource release (ASX announcement 22 July 2009) Extract's technical team has focused on infill drilling Zones 1 and 2 with the aim of upgrading the Inferred Resource to Indicated status. This upgrade is expected to define a significant resource that can be converted to reserves and hence a mining inventory for the Definitive Feasibility Study ("DFS").

Some drilling to define Measured Resource has also commenced at Zone 1. However, the majority of the results from this work will not be available in time for inclusion in the Q3 resource upgrade.

Additional drilling has also been completed in the western limb position of the Rossing South anticline and south of Zone 2 on the eastern limb. The aim of this drilling has been to define a maiden Inferred Resource that is also expected to contribute to the Q3 resource update.

Exploration and resource definition drilling completed to date at Rössing South has only focused on the northern most eight kilometers of a 15 kilometre long target. Once priority resource definition drilling has been completed additional exploration drilling will be undertaken.

Definitive Feasibility Study Update

The DFS continues to progress well and is on track for completion in Q4, 2010. It is expected that the DFS will confirm the project's potential as one of the world's largest uranium mines. The base case mine plan remains low risk, bulk tonnage, open pit mining, with ore processed through a conventional agitated tank leach plant.

Results from the recently completed pilot plant testwork program are still being returned and interpreted with available results encouraging and providing further support for the base case flow sheet.

Work is set to commence in the next week to excavate a bulk sample from the northern end of Zone 1 to be used for confirmatory comminution testwork. This will be the first explosive rock breaking at Rössing South.

Water Update

The company's 100% owned Namibian subsidiary, Swakop Uranium (Pty) Ltd, which holds Exclusive Prospecting Licence 3138, within which Rössing South is located, has recently formed an agreement with NamWater. As reported by NamWater on June 11, 2010, the agreement between NamWater and other potential resource customers is to co-operate in the financing, designing, procurement, engineering, construction, commissioning and operation (including maintenance) of a coastal desalination plant with the capacity to ensure sufficient water for the company's current and future demands.

Mining Licence Update

Work on the Environmental Impact Assessment and Management Plan is proceeding on schedule in parallel with preparation for a Mining Licence application. The outcomes from this work will be used to support a Mining Licence application over Rössing South before year end.

About Extract

Extract Resources 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 addition to the already known occurrences.

Extract is listed on the Australian, Toronto and Namibia Stock Exchanges under the ticker symbol "EXT". For more information on Extract visit www.extractresources.com.

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.

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