BANNERMAN REPORTS POSITIVE DRILLING RESULTS
AND RE-COMMENCES REGIONAL EXPLORATION PROGRAMS

Highlights:

�     Measured resources are expected to increase in the Anomaly A area of the Etango deposit following further broad near-surface and higher grade RC infill intersections.

�     Drilling results from mid-2009 are currently being incorporated into the Etango resource model.  An updated mineral resource estimate is scheduled for release in March.

�      Re-commencement of regional exploration activities.

Perth, Australia � Bannerman Resources Limited (ASX: BMN, TSX: BAN, NSX: BMN) ("Bannerman" or the �Company�) announces that positive results have been received from recent infill drilling in the Anomaly A area of the Etango deposit which are expected to significantly upgrade the confidence of the mineral resource estimate.  More good results have also been obtained close to surface from infill and extensional drilling in the Oshiveli and Onkelo areas in the northern part of the Etango deposit.  An updated mineral resource estimate for the Etango deposit is expected to be released in March and will underpin the mining study update which is underway as part of the Definitive Feasibility Study (�DFS�).

Bannerman has largely completed the DFS resource definition drilling work at Etango and is now well positioned to re-commence regional exploration programs on its Namibian titles which cover 1300km² in a world-class uranium setting.  This regional work will examine the potential for new uranium discoveries on the Company�s Etango, Swakop River and Botswanan exploration licence areas in southern Africa.

Bannerman CEO Len Jubber said: �Further drilling on the Etango deposit has confirmed the continuity of the high-grade mineralisation inside the starter pit area at Anomaly A.  The results are expected to increase the resource confidence in this area to Measured status, with the resource update due for release in March.� 

�Following the successful delineation of the Etango resource, the Bannerman geological team will now operate as two groups � one focusing on integrating the resource model into the Etango Project development, and the other on regional exploration of Bannerman�s Etango, Swakop River and Botswanan exploration licence areas.   The Company considers this dual focus will provide Bannerman with increased opportunity to leverage its geological understanding of the area gained over the past five years while simultaneously progressing activity on the Etango Project.�

Etango Project Drilling Update

Anomaly A

Detailed close-spaced infill drilling was undertaken at Anomaly A in November and early December 2009.  The assay results from two programs are detailed in the Attachment to this release.  The first comprised reverse circulation (�RC�) drillholes in the southern part of the Anomaly A area aimed at infilling an area from Inferred to Indicated mineral resource status. 

The second program, which was recently completed, included a 3,410 metre program of infill RC drilling to upgrade the mineral resource classification in the planned initial starter pit area of the Etango Project from Indicated to Measured status.  This program returned positive results that are expected to significantly upgrade the confidence of the Etango resource estimate and will be used in detailed mine planning and the DFS for the Project.  

Broad near-surface intersections have been returned from the RC drilling in this area, including:

Oshiveli and Onkelo

The drilling at Oshiveli and Onkelo targeted conversion of Inferred to Indicated resources, closing the gap between the two areas, and locally extending the mineralisation.   More good shallow results were obtained from infill and extensional drilling at these prospects. 

Results from a further five infill diamond drillholes and one infill RC drillhole at Oshiveli continue to support the geological interpretation and grade assessments in this area. The addition of the intersected mineralisation is expected to add to the size and classification of the existing resource estimate in this location.  There are currently two diamond drilling rigs conducting infill drilling at Oshiveli.

Diamond drilling at Onkelo and Oshiveli has returned above-average resource grade mineralisation, including the following intersections:

Ondjamba

Further reconnaissance drilling on the third of three parallel lines at the Ondjamba Prospect was completed in late 2009 and the results reported in this release are the assays that were subsequently received.  Whilst a number of the RC drillholes at Ondjamba have intersected uranium mineralisation in the form of high grade and narrow structures, it is not planned to complete further infill drilling in this area in the near future.

Resource Update

Bannerman has completed more than 284,000 metres of drilling within the Etango Project.  An updated mineral resource estimate, incorporating the 60,000 metres drilled since June 2009, is due for release in March.  Inclusion of the additional drilling into the resource model is expected to significantly improve the confidence of the resource estimate such that the vast majority will comprise Measured and Indicated resource material. 

Bannerman has drilled and modelled the Etango deposit to the extent that it is now defined to a high level of confidence and forms a robust basis for detailed DFS mine planning purposes.

Regional Exploration

Bannerman is expanding its regional exploration efforts on the Etango and Swakop River tenements, which cover 1300km² in a world-class uranium setting.  Exploration efforts over the next 12 months will focus on a range of exploration techniques to identify:

�         Near-Project high-grade satellite deposits in the southern areas of the Etango licence under desert sand cover where geophysical work in 2009 resulted in the identification of a number of prospective targets adjacent to buried domal structures; and

�         New mineralisation on the Etango, Swakop River and Botswana tenements.

Bannerman holds tenure over two Exclusive Prospecting Licences in Namibia (EPLs 3345 and 3346) and three Prospecting Licenses in Botswana (PLs 131/2005, 132/2005 and 133/2005).  All properties lie in proximity to known uranium mines and deposits including R�ssing, Langer Heinrich, R�ssing South and others in Namibia and Letlhakane and Foley in Botswana. 

Minimal exploration has been completed on the Namibian tenements beyond the immediate Etango Project area.  The Etango tenement (EPL 3345) covers a total area of 500km² and contains the Etango deposit, on which a Preliminary Feasibility Study has recently been completed for an extensive open pit mining operation.  A DFS is now underway.

An exploration plan is being compiled based on early exploration of the most promising known targets (refer Figure 1 on the following page), in conjunction with the development of targets, to define new uranium mineralisation.  

The exploration work planned for 2010 will comprise ground-based geological mapping, extensive radon cup surveys, detailed ground radiometric surveys, electromagnetic geophysics surveys and drilling.  The prospective target areas, adjacent to buried domal structures and lithological contacts, identified by the mid-2009 regional geophysical re-interpretation will also be followed up. 

Mr Jubber said �The Etango tenement is the most promising area as it contains the bulk of the known prospects and anomalies, and lies in the heart of the well-defined hard-rock uranium mineralisation corridor that runs southwest from the Valencia deposit down through R�ssing, R�ssing South, Ida Dome and Etango.  Much of the licence area is also under-explored or has never been explored.�

All previous exploration has been based on the concept of discovering uranium mineralisation by radiometric surveys, either airborne or on the ground, and it is now understood that this has not provided a definitive test of these areas.

�The Company�s work at Etango has given Bannerman a unique understanding of the nature and controls on primary uranium mineralisation in the region.  It is possible, as with Etango, that deposits exist within the licence areas that exhibit minimal radiometric signature at surface�, Mr Jubber said. 

About Bannerman - Bannerman Resources Limited is an emerging uranium development company with interests in two properties in Namibia, a southern African country considered to be a premier uranium mining jurisdiction.  Bannerman�s principal asset is its 80%-owned Etango Project situated southwest of Rio Tinto�s R�ssing uranium mine and to the west of Paladin Energy�s Langer-Heinrich mine.  Etango is one of the world�s largest undeveloped uranium deposits.  Bannerman is focused on the feasibility assessment and development of a large open pit uranium operation at Etango.  More information is available on Bannerman�s website at www.bannermanresources.com.