Sipa Resources Limited advised that a further review has confirmed the nickel potential at its 100%-owned Skeleton Rocks project, with elevated nickel and other elements identified in historic surface sampling and drilling. Assays from surface sampling conducted by Westonia Mines Limited returned anomalous Ni-Co-Cr- PGE results (WAMEX A68762), leading to follow-up drill testing in 2006, when 15 reverse circulation (RC) holes were completed over a prominent magnetic feature at the Jilbadgie nickel prospect, (WAMEX A73179). Assay results from this shallow RC drilling returned up to 3m @ 0.65% Ni from 36-39m within an overall intercept of 27m @ 0.36% Ni from 18-45m in hole WJRA06 047 (WAMEX A73179), among other intercepts.

Detailed analysis of both the surface and drill geochemistry has highlighted a number of samples with anomalous nickel-chrome ratios. The majority of the oxidised to weakly oxidised samples collected in the drilling define a systematic trend typical of mafic-ultramafic rocks, with the anomalous samples displaying substantially more Ni than is expected for their Cr content. The excess Ni may be due to mineralisation and further investigation and sampling is warranted at these locations, as well as along strike where `look-alike' geophysical features have not been drill tested.

Lithium Potential: Skeleton Rocks is also strategically located between the Great Eastern Highway and the Mt Holland lithium project, currently being developed in a joint venture between ASX conglomerate Wesfarmers and Chilean mining major Sociedad Quimica y Minera de Chile S.A. (SQM). Previous Sipa drill programs identified localised lithium-caesium-rubidium anomalism. The source of this anomalism remains a focus for exploration and additional samples have recently been collected across a broad area of the project and submitted for assay.

Pegmatites logged in historic drilling by Westonia Mines Limited (WAMEX A73179) will also be followed up in future programs.