ROX DEFINES STRONG IP ANOMALIES AT PHA LUANG

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1 ASX/MEDIA RELEASE ROX DEFINES STRONG IP ANOMALIES AT PHA LUANG Rox Resources (ASX: RXL, Rox ) has completed Induced Polarisation ( IP ) surveys at its Pha Luang zinc project in Laos. The survey was conducted by Thailand-based geophysics contractor Khumsup Siam under the direction of Southern Geoscience Consultants in Perth. Three areas were surveyed; Nam Yen, Bon Noi (Switchback) and Pha Sod (Figure 1). These areas were chosen as each has significant soil geochemical anomalism, some drilling and known mineralisation. Results from the surveys conducted at the Nam Yen and Bon Noi prospects show a number of discrete IP chargeability anomalies which are described below. Given the strength and extent of these IP anomalies, Rox is attempting to secure one or more diamond core drill rigs to test them as soon as possible. It is likely this drill testing will take 3 months to complete involving around 3,000 metres of diamond core drilling initially to depths of up to 550 metres. Nam Yen The IP survey clearly defines the known mineralisation at Nam Yen, drilled and reported on by Rox over the last 12 months together with a number of separate discrete IP chargeability anomalies. Each IP chargeability anomaly has an associated resistivity low. Of particular interest are two major IP chargeability anomalies, termed NY3 and NY4, which exist below the known mineralisation. Anomaly NY3 occurs from about 150 metres below ground level (BGL) and below the existing zone of known, drilled mineralisation, to a depth exceeding metres, the depth limit of the survey (Figure 2). This anomaly is defined over a north-south and eastwest distance of 200 metres in each direction. A number of IP chargeability anomalies also exist from the surface to about 100 metres BGL. One, NY1, is on the same trend as NY3 and the known mineralisation, and is coincident with a surface geochemical anomaly. There appears to be a connection between the deep anomaly NY3, the known mineralisation, and anomaly NY1 (Figure 2). The other deep anomaly, NY4, appears to lie at about 300 metres BGL and below a number of mineralised structures and surface soil geochemical anomalies to the north west of existing drilling. It is open at depth below the extent of the IP survey (Figure 3). None of these anomalies have been tested by drilling. Access for drilling is available from existing tracks. Rox Resources Limited ABN Ground Floor, 63 Hay Street, Subiaco WA 6008 Telephone: Facsimile: admin@roxresources.com.au RRL0712D-IM

2 Bon Noi There are three main discrete IP chargeability anomalies present, termed BN1, BN2 and BN3. Each IP chargeability anomaly has an associated resistivity low. Anomaly BN1 lies between about 50 metres and 200 metres BGL (Figures 4 & 5), and is located close to where previous drilling intersected significant oxide mineralisation. The anomaly has a diffuse top which could also be following a fracture to surface. Anomaly BN2 is about 120 metres in vertical extent (Figure 6) and lies 150 metres beneath a large surface geochemical anomaly with outcropping lead sulphide. Anomaly BN3 lies at about 200 metres BGL and extends to at least 500 metres depth (Figure 7) where it is still open beyond the depth extent of the survey. BN3 has an extension which appears to be following a fracture upwards to about 50 metres from surface. None of the IP anomalies has been effectively tested by existing drilling which was based on soil geochemistry. Access for drilling each of the anomalies is possible using existing access tracks. Other minor IP anomalies are noted, including weak near surface anomalies at KSK, Switchback 20 and Switchback 23, all locations where outcrops of galena (lead sulphide) are evident. Each of the three main anomalies has considerable extent, and although there can be many explanations for chargeability anomalies, the fact that sampled surface mineralisation is associated with small diffuse anomalies indicates the possibility that the stronger, deeper anomalies may be associated with Zn-Pb mineralisation. Rox carried out these IP surveys after completing a number of tests on drill core recovered from Nam Yen. It should be noted that IP measures the decay of an electrical charge applied to a rock mass over time (similar to capacitance). Most strong IP responses are due to either pyrite mineralisation or graphite. It has been found to be the most effective geophysical tool in exploring for Mississippi Valley Type (MVT) zinc deposits, but is by no means definitive of zinc mineralisation. In the MVT mineralisation model, zinc and lead sulphides are often associated with pyrite mineralisation, and lenses of graphite and other organic material are also common. Meanwhile Phase 2 of the field season s RC drilling, which commenced on 31 March is progressing, with completion of 7 holes for 838 metres at the Pha Sod prospect. Assays are expected in the next two to three weeks. The rig is now being relocated to the Nam Yen prospect after completing the planned program at Pha Sod. For more information: Ian Mulholland Managing Director Tel: admin@roxresources.com.au - ENDS - Ann Nahajski or Jim Hawtin Porter Novelli Tel: jhawtin@wa.porternovelli.com.au 2

3 The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Ian Mulholland BSc (Hons), MSc, FAusIMM, FAIG, FSEG, who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Mulholland 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. Mr Mulholland is a full time employee of the Company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. About Rox Resources Rox owns a 60% interest in the Pha Luang zinc and lead project and represents a ground floor entry into a potentially globally significant Mississippi Valley Type (MVT) zinc and lead district in Laos. The project area covers a 20km² mining concession area, and given the limited exploration at the project so far, represents a substantial greenfields exploration opportunity. Significant drill intercepts have been made of sulphide zinc and lead mineralisation at the Nam Yen prospect, including 33 metres at 11.4% combined Zn+Pb and 19 metres at 8.6% combined Zn+Pb and 13 metres at 7.9% combined Zn+Pb. The Company believes the project represents an emerging MVT district that could host a number of rich zinc and lead deposits similar to other major MVT districts in the world. MVT deposits can be big (25-100Mt) and have excellent metallurgical qualities. The best known example of these in Australia are the Lennard Shelf deposits, which hosted in excess of 40 million tonnes grading at better than 10% zinc and lead. Rox is well managed by a Board and management team with significant experience and a successful track record in the resources sector. The company is currently involved in a $2.2 million exploration program at Pha Luang involving 7,000 metres of drilling, extensive soil sampling, and geophysical surveys, aimed at demonstrating sulphide mineralisation in a number of areas. As well as the Company s successful exploration efforts at the Pha Luang project, extensions of the outcropping mineralisation at Pha Luang are known to exist for at least 5-10 km outside of the Company s joint venture area. Rox has made application in its own right to cover the unpegged part of this; in total 300km 2 of unexplored prospective ground. The Company is actively looking for additional resource projects in Laos and elsewhere. To facilitate Rox s aggressive exploration and development strategy in Laos, Rox divested its gold (WA) and diamond (South Africa) projects. The Company currently has a strong cash position of $4.5 million. Rox in Laos Located on the Indo-China Peninsula, close to markets in Thailand, China and Vietnam, the Lao economy is growing rapidly as the country moves from a centrally planned economy to a more market orientated one. With its excellent geological potential, where Rox is among several Australian mining companies enjoying outstanding success; the Lao Government has stated its intentions to embrace mining as a priority industry. Rox has strong ties with local Lao businesses and the community as well as good relations with the Lao Government. 3

4 Figure 1: Pha Luang Prospect Location Plan Known Mineralisation NY1 NY3 Figure 2: Nam Yen IP Chargeability Results E, looking east, showing IP chargeability anomaly NY3 lower right with connection to an anomaly defining drilled mineralisation and anomaly NY1 upper right. Existing drill holes shown. Vertical extent is about 400 metres and lateral extent about 800 metres. 4

5 NY4 Figure 3: Nam Yen IP Chargeability Results E, looking east, showing IP chargeability anomaly NY4 lower left. Vertical extent is about 400 metres and lateral extent about 800 metres. BN1 Figure 4: Bon Noi IP Chargeability Results N, showing anomaly BN1. Looking South. Vertical extent is about 450 metres and lateral extent is about 500 metres. 5

6 South East BN2 BN3 West BN1 North Figure 5: Bon Noi IP Chargeability Results -165 BGL. Perspective view showing anomaly BN1 (front centre), BN3 (right back) and BN2 (left back). Looking South. Existing drilling shown. East to west extent 1,200 metres, and north to south extent 700 metres. BN2 BN3 Figure 6: Bon Noi IP Chargeability Results N, showing anomaly BN2 (centre) and BN3 (right). Looking South. Vertical extent is about 500 metres and lateral extent is about 1,000 metres. Existing drilling shown. 6

7 BN3 Figure 7: Bon Noi IP Chargeability Results N, showing anomaly BN3. Looking South. Vertical extent is about 500 metres and lateral extent is about 850 metres. 7