ADMIRAL BAY

Kagara Ltd announced results from a recently completed Pre-feasibility Study for Admiral Bay Lead-Zinc-Silver-Barite project, located in Western Australia’s Kimberley region. Based on processing an initial 25.2 million tonnes of ore over a 10.2 year time frame, lead concentrate production of 1.552 million tonnes grading 70% lead, zinc concentrate production of 1.539 million tonnes grading 55% zinc and silver production of 18.97 million ounces contained in concentrates the revenue is estimated to be at A$4,964 million.

Kagara Ltd report that in the June 2009 quarter a Pre-Feasibility study estimated to cost approximately A$0.5 million has begun on the Admiral Bay deposit, Western Australia. The study is being undertaken by RSV Australia. RSV has designed, procured and managed the sinking of many deep, vertical mine shaft complexes similar to those that will be required at the Admiral Bay Project and will work closely with Kagara’s own engineers through the process. The study is expected to be completed in the December Quarter and Kagara will then contact suitably qualified potential joint venture partners.

Reported that exploration expenditure will be scaled back and because of the high capital cost of development of Admiral Bay, a joint venture partner will be sought to take the project forward to production.