Shree Minerals Ltd. advised that as part of its business development activity pursuing the strategy of building a portfolio of quality assets and advancing them using modern exploration techniques, mine development and process of continuous evaluation and prioritisation of its project portfolio, the Company has been able to secure highly prospective tenements within the Laverton Province. This province is known to contain some 30 million ounces of gold, making it the second high endowed gold district in Western Australia behind Kalgoorlie. The Laverton gold district is also the high growth gold district in Australia over the last 25 years.

The region hosts several important gold and nickel deposits including Sunrise Dam (>10Moz), Wallaby (> 8Moz), Granny Smith (>2Moz, closed) and Lancefield (>2Moz, closed), Windara Nickel (combined 85K tonnes nickel sulphide). Lynas Rare Earth also operates the Mt Weld Rare Earth Element (REE) operation only 2 kms to the south of Shree's application. SHH has identified a series of very prospective under-cover gold and nickel mineralisation drill targets within the tenements.

The targets have been generated through an integrated approach using detailed interpretation of aeromagnetic and gravity images, historical exploration drilling programs and the mineralisation models developed from the neighbouring world class gold deposits. Details of the prospectivity of the applications is discussed below. The Mt Weld rare earths mine located just 2 kms south of Shree's EL38/3697 is one of the highest-grade rare-earth mines operating in the world.

The project is owned and operated by Lynas. Rare earths are contained in secondary phosphates and aluminophosphates, presumably derived from weathering of the Proterozoic Mount Weld carbonatite. The primary commercial interest at the site is targeted towards oxides as well as further niobium and tantalum deposits within the magnetic circular pipe of the Mount Weld carbonatite, which is approximately three kilometres in diameter.

The mine comprises substantial deposits of rare earth elements (REE) including lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Td), dysprosium (Dy) and yttrium (Y). Occurring within EL38/3697 are several small diameter aeromagnetic bullseye features seen within the aeromagnetic images. Shree will evaluate these features for MT Weld style mineralisation concurrently with the exploration programs discussed above.

Much of the tenement is blanketed by transported alluvial and colluvial cover sequences rendering soil sampling ineffective. Initial exploration will include air core and RC drilling. Drilling samples will be assayed for not only Au and Ni but also REEs.

A very compelling target comprising undercover and fault-offset gold mineralisation which may be related to the outcropping Lily Pond Well (LPW) mineralisation (not SHH). The Lily Pond Well Au deposit was identified by Sons of Gwalia in 1999 and contains an inferred resource of 340,000 tonnes @ 1.4 g/t Au for 15,000 ozs Au. Significantly, the LPW deposit closely resembles the geological setting of the world class Wallaby Gold Deposit, located only 25 kms to the west.

At LPW, interleaved mafic conglomerates, mafic and graphitic schists, pelitic and psammitic sediments and felsic fragmental rocks are spatially related to a strongly altered felsic intrusive, with diagnostic alteration including chlorite - sericite - albite - pyrite. Narrow zones of quartz-sulphide veining, with albite sericite altered selvedges, average between 1 and 6 g/t Au. Intersections at LPW include 5m @ 1.7 g/t Au from 49m, 2m @ 2.9 g/t Au from 98m and 5m @ 5.81 g/t Au from 122m in the same hole (LPC645).

Other intersections include 7m @ 3.84 g/t Au from 55m, 1m @ 12.1 g/t Au from 66m and 6m @ 2.03 g/t Au². Occurring just 200m to the east of the LPW deposit, and within Shree's application (EL38/3697), historic drillhole LPR577 intersected 3m @ 1.36 g/t Au from 36m downhole depth, which is part of a broader anomalous intersection that extends to EOH³. Anomalous pathfinder geochemistry includes Sb and As.

It's relationship to the LPW resource is not known. The area immediately to the south of LPR577 is covered by a blanket of transported cover and is essentially untested by drilling to the air core holes discussed below. Very significant and mineralised air core holes situated 2 kms to the SE of the LPW resource and LPR577 include: SLAC104: 3m @ 1.85 g/t Au from 41m.

SLAC107: 2m @ 1.76 g/t Au from 61m. SLAC109: 1m @ 2.2 g/t Au from 78m. Connecting the LPW deposit and these SLAC aircore holes is a prominent regional, SE-NW orientated aeromagnetic structure, with sinistral off-sets, suggesting the structural controls on the LPW mineralisation may be present.

From the WAMEX drill hole data base, maximum gold assays from each drill hole in the district has been imaged. A linear trend of anomalous gold geochemistry is evident extending both north and south from the Lily Pond Resource location. The Pelican Laterite Nickel Resource (not SHH) was discovered by Anaconda Nickel in 1999 and contains an Inferred Nickel Resource of 6.4 Mt @ 0.96% Ni, 0.84% Co, 5.6% Mg, at a 0.8% Ni cut-off.

Host rocks include a weathered ultramafic known as the Pelican Ultramafic and consists of smectite and saprolitic clays. Highly anomalous nickel in laterite geochemistry occurs over a length of 8 kms within the Pelican Ultramafic belt. Rare, deeper drilling into the weathered profile intersected a serpentinised olivine cumulate komatiite at Pelican, a favourable host rock for nickel sulphide mineralisation at the Mount Keith, Windara, and the Perseverance nickel deposits.

Drilling did not extend to depth often enough to test for the presence of nickel sulphide mineralisation at Pelican. In 2008, Placer Exploration drilled three shallow RAB holes within the Pelican Ultramafic in the area now covered by EL38/3697. Significantly, Placer geologists identified highly altered olivine cumulate textured komatiites within these holes.

The area corresponds to a significant thickening of the Pelican aeromagnetic anomaly. Intersections include 1m @ 2.07% Ni, 1.39% Co and 3m @ 1.22% Ni. Unfortunately, the rocks were not assayed for pathfinder geochemistry associated with nickel mineralisation, including Cu, Cr, and PGE's. There has been no follow up exploration of this target since Placer's work.

Fault-bounded sediment-BIF and mafic targets to the east of the now closed Granny Smith Gold mine have been interpreted in and near Shree's EL38/3698. These targets occur under laterite and transported cover and are almost entirely untested by historic drilling. Drillhole (SLAC080) tested the northern margin of the central target and returned 1m @ 0.96g/t Au from 33m to EOH.