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27 June 2007

JOINT ASX/MEDIA RELEASE

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Company Announcements Office

NGM TO EXPLORE FOR NICKEL IN MADAGASCAR

SUMMARY

• NGM has reached an agreement with BHP Billiton to acquire 100% of BHP Billiton’s nickel exploration projects in Madagascar
• The agreement covers significant ground-holdings with potential for nickel sulphide deposits in four areas of Madagascar
• Results of recent drilling of a significant geophysical anomaly at Analalava are awaited
• NGM will joint venture the project with M3 Madagascar Ltd a privately owned company, to help fund the exploration program
• NGM and M3 Madagascar will spend US$1 million on nickel exploration in Madagascar within the coming year and an experienced exploration team is in place.

NGM Resources Limited (ASX: NGM) is pleased to announce the company has signed an Agreement with BHP Billiton, to acquire four nickel exploration projects, amounting to over 5,000km² of prospective tenements in Madagascar.

NGM Managing Director Dr Russell Penney said: “The signing of this Agreement will be a major step forward for NGM shareholders with the acquisition of some very exciting nickel projects in under explored areas,” Dr Penney said.

“Having exposure to nickel exploration projects in Madagascar and uranium exploration targets in Australia and Niger provides NGM shareholders with a significant portfolio of assets.”

The nickel exploration tenements are located in four groups, the main areas being Analalava in the northeast, Andriamena in central Madagascar, in the vicinity of Jubilee Platinum plc’s Lavatrafo nickel prospect, and Maralambo along the east coast, adjacent to Dynatec Corp’s Ambatovy nickel laterite development project. All of the tenements cover prospective geology comprising mafic and ultramafic intrusive and volcanic complexes with previous exploration for nickel and platinum group metals, largely by BRGM (Bureau de Recherches Geologiques et Mini�res).

The Analalava project is located on the northeastern coast, 600km northeast of the capital Antananarivo. The tenements cover the prospective Analalava layered gabbro complex and associated basaltic and rhyolitic lavas. BHP Billiton has completed regional geochemical sampling, detailed auger/soil sampling, reconnaissance IP and detailed moving and fixed loop EM programs. They have also completed a regional VTEM/aeromagnetic survey. Targets identified by EM and IP were selected for drilling. Some disseminated sulphides (chalcopyrite and pyrrhotite) have been identified in core, however the analytical results of this drilling program are not yet available. The exploration potential of the area is considered to be high with known occurrences of disseminated copper sulphides and a large EM conductor associated with the basal contact of the gabbro.

The Andriamena project is located in central Madagascar, 120km north of Antananarivo. There is known nickel sulphide mineralisation in the area found by BRGM and Jubilee Platinum, and data is available from regional exploration previously conducted by BRGM. Previous drilling by BRGM in this area (Londokomanana) returned up to 5.25m @ 2.48 g/t Pt + Pd. BHP Billiton’s tenements lie immediately west of the Jubilee ground, in an area where similar ultramafic-mafic lithologies are interpreted to occur. The project is at an early stage of exploration.

The Maralambo project is located within the Antogil Archaean domain on the east coast some 200km from Antananarivo, immediately to the south of Dynatec Corp’s Ambatovy nickel laterite project. The tenements cover a large area of gabbro intrusions and lie adjacent to ground where Jubilee and Implats (Impala Platinum Holdings Ltd) have recently intersected semi-massive and matrix sulphides containing low grade Ni, Cu, and PGE’s.

Further nickel exploration tenements are held in the Cap St. Andr� area of Northwest Madagascar, about which data is currently being compiled.

The BHP Billiton Agreement:

Principal terms include:

�       NGM will acquire 100% of the nickel exploration tenements in Madagascar held by BHP Billiton.

�       BHP Billiton will retain a 3% Net Smelter Return royalty on production from any developed mineral discovery.

�       BHP Billiton will retain the rights to purchase and market any mineral products, and an agency fee of 3% of the invoice value of all sales.

�       NGM will undertake an exploration program costing approximately US$1 million within the first year of operation.

�       If the project demonstrates potential for developing into a mine NGM will undertake a feasibility study within ten years of signing of the agreement.

The M3 Madagascar Joint Venture:

NGM has negotiated a joint venture farm-out agreement with M3 Madagascar Ltd (“M3M”), a privately owned company, to jointly explore the Madagascar nickel projects NGM has acquired from BHP Billiton. The agreement is expected to be signed shortly. NGM will enter into this joint venture to share the high cost of such a potentially large exploration program. The principal terms of that agreement are:

�       M3M will earn a 25% interest by funding 50% of the US$1 million first year exploration program, and by committing to the agreed second year program,

�       M3M will earn a total 50% interest in the project by providing 50% of the agreed exploration funding over 2 years,

�       NGM will be the manager and operator of the joint venture,

�       If M3M, at any stage, decides not to contribute, then dilution clauses apply,

�       If M3M equity falls below 5% then M3M will retain a 2% NSR,

�       If M3M does not contribute to the joint venture in the second year it will not retain any interest in the project.

�       The agreement is subject to M3M completing satisfactory due diligence and the successful transfer of the BHP Billiton tenements to NGM.

NGM is pleased to advise that it has secured the services of nickel experts Mick Elias and Dr Bill Clayton of CSA Australia Pty Ltd (geological consultants) to direct the exploration program in Madagascar. NGM and M3M have budgeted up to US$1 million for exploration of these nickel projects over the next year.

Madagascar is a developing country, has a modern mineral tenement administration system and openly encourages investment in the mineral sector. Two significant mineral deposits are currently being developed in Madagascar, including Dynatec Corp’s US$2.25 billion investment in the Ambatovy nickel laterite project, and Rio Tinto plc’s, Fort Dauphin Ti mineral sands project in Southeast Madagascar.

Ends

For further information, please contact:

Russell Penney

Managing Director

Tel: +61 (0) 9367 6471

Warrick Hazeldine

Purple Communications

Tel: +61 (0) 9485 1254

Visit: www.ngmresources.com.au

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Dr Russell Penney, who is a Fellow of The Australasian Institute of Mining and Metallurgy.

Dr Russell Penney is a full-time employee of the company.

�Dr Russell Penney has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he� is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Russell Penney consents to the inclusion in the report of the matters based on his information in the form and context in which it appears”.

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