Focus Minerals (ASX: FML)

Signs Mill Treatment Exclusivity Agreement with Matsa Resources

Australian gold producer Focus Minerals (ASX: FML, Focus) is pleased to announce the signing of an Exclusivity Agreement with emerging mining company, Matsa Resources Limited, (ASX: MAT; Matsa) for the treatment of ore from Matsa’s Norseman Gold Project at Focus Three Mile Hill Plant.

The exclusivity agreement is a precursor to a formal binding agreement which - upon commissioning of Focus 1.2Mtpa Three Mile Hill gold processing facility later this year - would involve treating ore produced from Matsa’s North Scotia deposit in scheduled milling campaigns at Three Mile Hill expected to commence during February 2010.

The agreement, once finalised, will generate valuable revenue for Focus as well as providing high-grade feedstock for Three Mile Hill in its ramp-up to full scale production.

Focus Chief Executive Officer, Mr Campbell Baird said the agreement with Matsa would  provide substantial benefits to both parties: We are very happy to be in a position to help a fellow junior gold producer realise their production ambition while at the same time generating cashflow for ourselves.

It’s essentially a win-win situation, particularly at such an early stage of our production ramp up utilising any excess capacity. Processing Matsa’s high-grade ore will also help with plant efficiency, as the need for utilising Focus low-grade ore stockpiles will be reduced, he added.

To support a fellow aspiring producer, Focus has also agreed, subject to conditions, to participate in a share placement with Matsa, to the value of $200,000.

We look forward to expanding our existing relationship and to continue working with Matsa Resources as we place the necessary foundations to become a significant gold producer in the region, said Mr Baird.

For further details please see Matsa Resources Limited’s ASX release on 12 August 2009

ENDS

BACKGROUND INFORMATION  FOCUS MINERALS LTD

Focus Minerals Ltd (ASX: FML) is an Australian-based exploration and development group whose focus is to become a significant gold and nickel producer in the Coolgardie-Kalgoorlie-Widgiemooltha region of Western Australia.

Focus Minerals is the largest landholder in the Coolgardie Gold Belt located in Western Australia, 560km east of Perth and 35km west of the Super Pit in Kalgoorlie-Boulder. More than 2.6 million ounces of gold has been produced from the Coolgardie gold belt alone since 1892. Focus holds the mineral rights to more than 210sq km of tenements including an extensive inventory of Measured, Indicated and Inferred gold resources as well as the 1.2mtpa Three Mile Hill processing plant.

Focus commenced maiden commercial gold production in April 2008 through ore sourced from the Company’s flagship Perseverance Deposit (Probable Reserve of 129,000oz). Earlier this year, the nearby Countess Deposit (Probable Reserve of 29,000oz) was also brought into production with ore from both deposits currently being milled at the nearby Greenfields treatment plant.