Please find below highlights of today’s ASX Release: Auzex Resources Limited – March Quarterly Report.  To view the entire announcement, refer the Company’s website, www.auzex.com and click on the relevant news item on the left hand side of the home page.

QUARTERLY REPORT

Three Months Ending 31 March 2008

Highlights

Kingsgate Molybdenum-Bismuth Project, Glen Innes, NSW

• Further positive assay results were received from the resource drilling program at Kingsgate. All pipes drilled to date remain open along plunge. Better intersections include:

• 7m at 0.871% Mo and 0.256% Bi from 30m
• 3m at 1.676% Mo and 0.461% Bi from 14m
• 5m at 0.872% Mo and 0.542% Bi from 13m

• Initial investigations and testwork into the potential of silica (quartz) to be of value in the Kingsgate production process were positive. Given the style of mineralisation and based on processing capacity of 250,000tpa, it is estimated that silica production could be 100,000-150,000 tpa.

·         Silica is used in the electronic, lighting, fibre optic and semiconductor industries, and in silicon production. A consultancy firm advising the Company on the marketing of its silica material has indicated, based on initial testwork assay data, that it may be suitable for high value markets such as thin film transistor (TFT) and liquid crystal display (LCD) applications. Material for such applications has an indicative value of US$400 per tonne.

·         If the results of further testwork confirm the value of Kingsgate silica, then this will have a major positive impact on project profitability, resource potential and longevity. These results are expected mid year.

·         As a result of this potential impact to the project’s fundamentals, the release of the Feasibility Study has been postponed until September to allow time to assess the intrinsic value of the Kingsgate silica.

Khartoum Tin Project, North Queensland

• An initial six-hole scout drilling program produced excellent results, with best intersections including 104m at 0.21% tin from 12m and 34m at 0.26% tin from 99m. All holes intersected mineralisation with individual metre assays up to 3.00% tin.

• The size and grade of tin mineralisation mapped on the surface and intersected at depth to date is very exciting and could lead to arguably the most significant new tin discovery for many years. There is also considerable potential to increase the scale of the Khartoum project within the Company’s tenement, outside of the area defined by current exploration.

• Metallurgical testwork is underway and a second phase RC drill program is planned for the second half of 2008.

Lyell Goldfields, New Zealand

• Soil sampling identified an anomalous gold zone 1800m x 200m surrounding the historic Alpine gold quartz reefs. Results were highly encouraging with five assays over 1g/t gold and spot assays of 39g/t and 10g/t gold received.

• The results have prompted the Company to fast-track this project and land access discussions have commenced.

Corporate

• Financing negotiations for the development of the Kingsgate project have commenced. Information and data packages have been provided in confidence to selected interested parties.

• Prices for the Company’s metals remain strong. As at 19 April, molybdenum was trading at US$33.00 lb (A$77,900 tonne), bismuth US$16.00 lb (A$37,800 tonne) and tin US$21,695 (A$23,200 tonne).

Regards

Brett O'Donovan

Auzex Resources Limited

Ph: 0433 399 501

Level 30, AMP Place

10 Eagle Street

Brisbane  Qld  4000

www.auzex.com