DELUNGARA

Malachite Resources Limited advises that all assay results have now been received for a program of reverse circulation percussion drilling at the Standon Tin Prospect, part of the company’s wholly owned Delungra Project. In all, 26 holes were drilled, for a total of 1,605 metres. The objective of the drilling was to ascertain whether the soil tin anomaly reflected a broad zone of stockwork veining, implying a low grade, bulk tonnage style of mineralisation, or was due to a more limited number of narrow, higher grade veins that are shedding into the soil. The results indicate that the latter interpretation is more likely in this case. Stream sediment geochemistry within EL7011 has identified a further two anomalies with signatures similar to that at Standon and these will be followed up in the field early in 2010.

Malachite Resources reported that drilling is expected to commence next week at the Standon Tin prospect. Exploration at Standon has identified a large and strong tin-in-soil geochemical anomaly, with tin values in the soil up to 0.4% Sn. Follow up sampling in the past few weeks has extended the anomaly to the northwest and enhanced its intensity. The anomaly covers an area of 1150m x 450m (over 50 ha) and is not fully closed off. The strongest part of it (>250ppm Sn in soil) extends over an area measuring 550m x 375m (21ha). Younger Tertiary basalt overlies the prospective granitic rocks on the northern side of the anomaly and it is possible that the mineralised system extends further to the north below the Tertiary basalt cover.

Received further results from tin exploration. Follow up soil geochemistry at the Swinton Prospect has expanded the size of the anomaly to at least 700 x 250m and increased the tenor of the results, with the maximum tin value in the soil at 0.41% tin. A substantial tin-bearing stockwork vein system is thought to underlie the soil anomaly