FOCUS POISED TO BECOME SIGNIFICANT MID-TIER GOLD PRODUCER AFTER SECURING APPROVAL TO MINE AT THE MOUNT

Focus Minerals (ASX:FML) has taken a big step in its transformation to a substantial mid-tier gold producer by securing all necessary mining permits and environmental approval to mine The Mount, its 350,000-ounce deposit in WA�s Goldfields.

The Mount, which lies 80km south of Focus� Tindals Mining Centre at Coolgardie, will play a key role in lifting the Company�s production from 41,000 ounces last financial year to 80,000 ounces in 2010 and ultimately to 100,000 from 2011 as mining starts at its other surrounding deposits.

Focus Chief Executive Officer Campbell Baird said environmental approval at The Mount had paved the way for the construction of a decline, which began on Friday. This would enable the Company to run a trial mining operation aimed at determining the full potential of what is already known to be a substantial deposit.

Mr Baird said The Mount would be a significant source of feed for Focus� refurbished Three Mile Hill processing plant. Three Mile Hill, which is expected to be commissioned in November, will have an annual capacity of 1.2 million tonnes.

Environmental approval for The Mount comes as Focus prepares to recalculate the reserve and resource estimate at the Tindals Mining Centre based on an ongoing drilling program. The Mount forms part of Focus� overall resource base of 1.88 million ounces comprising of:

MILLING CAMPAIGN UPDATE

Focus is also pleased to announce that is has just commenced its ninth milling campaign at the nearby Greenfields plant under a long-standing contract. This campaign extends for 49 milling days and will conclude towards the end of October.

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Links

www.focusminerals.com.au