NIMRODEL RESOURCES LIMITED (ASX: NMR)

ASX Release - 19 May 2009

NIMRODEL SIGNS HEADS OF AGREEMENT TO ACQUIRE ADVANCED KAMUSHAN URANIUM PROJECT, KYRGYZSTAN

CURRENT JORC RESOURCE OF 2.5Mlb WITH POTENTIAL TO BE IN PRODUCTION BY 2010

SIGNIFICANT SCOPE FOR INCREASING THE CURRENT RESOURCE

HIGHLIGHTS

�         Heads of Agreement signed with private UK-based company, Pangaea Energy Ltd, for the option to purchase 80% of the Kamushan Uranium Project, Northern Kyrgyzstan

�         2.5mlb of Indicated and Inferred JORC-compliant Uranium resources at 370ppm within 3.4 metres from surface on average

�         Recently completed additional drilling indicates potential to significantly expand the resource base 

�         Short-term reclassification and increase of the current resource is expected on completion of a bulk density measurement programme

�         Project located close to quality infrastructure including town of Kamushan and nearby Kara Balta uranium processing facility 60km to the south

�         Recent modeling by Pangaea (subject to due diligence) estimates that the project can be built by H2 2010 for US$13 million with extraction and processing costs of between US$10-12/lb

International mining company Nimrodel Resources Limited (ASX: NMR) is pleased to announce that is has signed a Heads of Agreement ("HOA") with private UK-based company Pangaea Energy Ltd ("Pangaea"), for the Option to Purchase ("Option") 80% of the Kamushanovskoe Uranium Project ("Kamushan"), located near the Kyrgyzstan capital of Bishkek. The option also includes the acquisition of the 720km� Jetym uranium exploration lease in eastern Kyrgyzstan.

The deal will give Nimrodel the option to purchase Pangaea's advanced uranium project in Kyrgyzstan following completion of a 90 day due diligence period, and will enable Nimrodel to increase the Company's asset base in Kyrgyzstan, which  now includes uranium and gold projects at various stages of development.

Pangaea have reported that the Kamushan Uranium Project has produced positive metallurgical results and with the possibility for Nimrodel to commence initial production as early as 2010. The project is expected to bring solid early revenue streams with minimal up-front capital requirements (current Pangaea estimate of US$13m), representing a veryearly payback period.

Nimrodel will acquire the project in two stages:

Stage One - Due Diligence and Option to Acquire

Stage One of the transaction will commence immediately with the payment of an Option Fee of US$100,000 to Pangaea's 100%-owned subsidiary, IMC Resource Holdings (Hong Kong). Additionally, Nimrodel will fund bulk sampling costs (expected to be <A$10,000) to re-classify and increase the current JORC resource.

The 90 day option period will comprise of 60 days of actual due diligence following a notice period of 30 days from the date of the Heads of Agreement, during which time an option agreement is expected to be signed. The Company anticipates being in a position to commence formal due diligence at the end of May 2009.

If Nimrodel does not proceed to Stage Two (detailed below), Nimrodel will retain a 1.5% interest in IMC Resource Holdings (Hong Kong) or will, at Pangaea's discretion, receive its money back.

Stage Two - Acquisition and Commencement of Bankable Feasibility Study

Following a successful due diligence programme, the second stage of the transaction will involve the issue to Pangaea of up to 30 million ordinary Nimrodel shares and 15 million options (exercisable at 20 cents per share) to Pangaea. The share consideration will not exceed 19.9% of the issued capital of Nimrodel at the time of EGM approval.

Following approval by Nimrodel shareholders, Nimrodel will then fund a Bankable Feasibility Study (BFS), on-going exploration activities to expand the resource and overheads until end March 2010 up to a total of US$1.5m. The BFS is estimated to take approximately 6 months to complete. After completion of the BFS or expenditure totaling US$1.5m, costs will be shared proportionately, but funded by Nimrodel via a loan to the 20% minority (Minority Loan), bearing interest at commercial rates.

Upon completing a minimum capital raising of US$1m, Nimrodel will formally acquire a 100% interest in IMC Resource Holdings (Hong Kong) which holds an 80% interest in the Kamushan and Jetym Uranium Projects via IMC Resources CJSC Kyrgyzstan. Nimrodel will have a majority representation on the Board of IMC Resources CJSC.

Subject to the commencement of Stage 2, it is anticipated that the Acquisition will be completed by the end of August 2009.

Production

Upon commencement of commercial production, a one-off production bonus of US$2.5m (less the Minority Loan)will be paid to Pangaea in the form of equity in Nimrodel. This payment will be made on a VWAP (Volume Weighted Average Price) of Nimrodel shares and is subject to prior repayment of the minority completion loans.

Project Background

The Kamushan Uranium Project in Northern Kyrgyzstan contains 2.5mlbs of Indicated and Inferred at-surface JORC-compliant uranium resources at 370ppm U₃O₈ with significant expansion potential (P. Jones - 29/04/08).

Importantly, the uranium is in soft ore and located within 3.4m, on average, from the surface. There is also significant expansion potential (to several multiples of current resource) within the Exploration Licence, which covers an area of over 500km�.

In recent modelling, Pangaea has calculated that the project can be built by H2 2010 for approximately US$13m by utilising existing uranium processing facilities nearby. With extraction and processing costs of US$10-12/lb, the project has robust economics and for this reason it is expected that the entire resource can be economically extracted. These estimates and the basis for them will be reviewed as part of the due diligence program.

Kamushanovskoe is on the doorstep of the town of Kamushan, and has all necessary infrastructure, including rail hub and uranium processing facilities located just 60km's away on sealed roads.

SUMMARY

Commenting on the agreement, Nimrodel's Managing Director, Mr. John Hebenton said: "We are very pleased to have signed this agreement with Pangaea. The project is a good fit for us and can be developed in parallel with our ongoing gold and uranium exploration activities within the region.

"The deal gives Nimrodel access to an advanced uranium project with near-surface deposits in close proximity to existing uranium processing facilities and infrastructure; it  ticks all the boxes in terms of what we were looking for including short-term production and significant expansion potential" he added.

"Development of Kamushan increases Nimrodel's exposure to this richly mineralised region, and provides the opportunity for further exploration in an area that, by modern standards, has been poorly explored and under-developed .."

The initial focus of development at Kamushanovskoe will be to complete due diligence and the subsequent BFS ahead of the commencement of production in 2010. The Project is viewed by the Company as a key strategic vehicle to building on Nimrodel's profile in Central Asia as a diversified mineral exploration company.

- ENDS -

Enquiries:

John Hebenton, Managing Director

Mobile: +61 (0) 418 962 879

Email: johnh@liniaprava.com.au

Damian Delaney, CFO

Mobile: +61 (0) 438 921 666

Email: damiand@nimrodel.com.au

About Nimrodel

Nimrodel Resources is an international exploration company which is developing a portfolio of highly prospective, uranium, precious and base metals projects in Kyrgyz and Australia. The Company has three core projects: the Batken Province and Tyuz-Ashuiskaya Projects in Kyrgyzstan and the Buckaroo Project in Australia.

The Batken Oblast Project covers 1,946 km� and encompasses a highly prospective area with geology similar to that of the Mailuu-Suu Uranium Mine, which historically produced approximately 10,000 tonnes of high-grade uranium. The leases are in the Fegrana Basin, within 10km of an existing uranium plant at Hojent in Tajikistan and within 45-100kms of former Soviet uranium mines, including Mailuu-Suu and Tuya Muyun.

The Tyuz-Ashuiskaya Exploration Licence, which is located in the gold-rich Chatkal region of Western Kyrgyzstan, is an under-explored area which includes the Sarayay-Tyllyaberdy gold deposit - a 7.5 kilometre long zone of surface gold mineralisation.

Based on historical information including extensive surface trenching results, the Company considers that there is potential to define a substantial gold resource of over 500,000oz of high-grade gold at grades in excess of 5g/t Au.