Update Regarding Proposed Downstream Offer for Extract Resources

SOUTH PERTH, Australia, Jan. 23, 2012 /CNW/ - Extract Resources Ltd (ASX/TSX/NSX: EXT) ("Extract" or the "Company") notes the announcement on the London Stock Exchange by Taurus Mineral Limited ("Taurus") advising that Taurus had received valid acceptances of its offer for Kalahari Minerals ("Kalahari") representing approximately 29.4 per cent of the existing issued share capital of Kalahari.

Under the terms of the relief granted to Taurus by the Australian Securities and Investments Commission ("ASIC"), Taurus must proceed with making an off-market takeover offer to all Extract shareholders within four weeks of Taurus having received acceptances of the Kalahari offer in respect of more than 50% of the voting rights in Kalahari.

Extract's Independent Directors intend to make a recommendation in relation to the Taurus offer for Extract once such an offer is made. In the meantime, Extract's Independent Directors are continuing to actively investigate all available alternatives that could maximise value for all Extract shareholders.

A copy of the Taurus announcement "Offer Update" is available at www.sedar.com.

About Extract Resources

Extract Resources Ltd is an international 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 the fourth largest uranium only deposit in the world. Extensive exploration potential also exists for new uranium discoveries in the region. Extract Resources is listed on the Australian (ASX), Toronto (TSX) and Namibian (NSX) Stock Exchanges.

For further information, please visit www.extractresources.com or contact: