CONICO LTD — Capital/Financing Update 2008

Oct 16, 2008

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- - Mt Thirsty Cobalt Nickel Manganese Deposit Metallurgical Update

Highlights

• Advanced metallurgical testwork returned recoveries of up to 99% Cobalt, 98% Manganese and 75% Nickel based on recent Atmospheric Leach testwork.

• Cobalt-Nickel-Manganese leach rapidly in 8-10 hours at normal atmospheric pressure and moderate temperatures (<100[o] C).

• Autoclaves are not required for the leaching process.

• Potential metal recoveries for the resource approach 33,000 tonnes of Cobalt, 133,000 tonnes of Nickel and 247,000 tonnes of Manganese.

• Potential products include Cobalt and Nickel hydroxides together with a Manganese carbonate by-product.

• Conceptual Plant flow design for metal extraction has been completed.

• The proposed flowsheet is simple and robust with no new technology required.

• Production profile targeting 2 million tonnes per annum.

The Company is pleased to announce the preliminary results of metallurgical testing of composite ore samples from its Mt Thirsty Cobalt-Nickel Project, strategically located 20 kilometres north-northwest of Norseman, Western Australia. The Project is under a 50/50 joint venture between Barra Resources Limited ( “Barra” ) and Meteore Metals Limited, a 100% owned subsidiary of ASX listed Fission Energy Limited ( “Fission” ) (collectively referred to as the “Joint Venture”).

Metallurgical Testwork

Metallurgical bench scale testwork, has been carried out over the past six months on the major ore types associated with the Mt Thirsty Co-Ni-Mn deposit. Seven bulk samples weighing in-excess of 100kg were collected from each of the corresponding ore horizons from drillholes throughout the orebody. A composite sample, representative of run of mine ore, was then prepared for leach testing.

Multiple tests were carried out on the same sample at various temperatures and acid concentrations to optimise nickel recoveries whilst maintaining relatively low levels of iron in solution. This was finally achieved by leaching the ore in two stages. Stage One operates at low temperature (60C), reducing atmosphere and utilises the liquor from Stage 2 which has a low acid concentration. The cobalt and manganese recoveries for Stage 1 are typically 85 - 90% after a two hour residence time. A solid liquid separation stage is undertaken and the solids are repulped with acidified process water heated

Barra Resources Limited (ABN 86 093 396 859)

Mercury House, Level 3, 33 Richardson Street, West Perth, Western Australia 6005 Telephone: (08) 9481 3911 Facsimile: (08) 9481 3955

up to 100[o] C. This then feeds to the Stage Two oxidation leach where the bulk of nickel is extracted and any residual cobalt and manganese recovered. Iron in solution during Stage 2 is precipitated as jarosite by the simple addition of saline process water. Acid consumptions for these tests were in the range of 150-330kg per tonne of ore.

Results of this testwork is summarised below.

Ore Type	Acid Add'n	Total Leach Extraction(%)	Total Leach Extraction(%)	Total Leach Extraction(%)	Total Leach Extraction(%)
	kg/t	Ni	Co	Fe	Mn
CompositeCompositeComposite	330200146	75.063.631.2	99.099.089.2	14.09.921.3	98.698.591.2

Leach curves are shown below.

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----- Start of picture text ----- Two Stage LeachTemperature 60C Stage 1 and 100C Stage 210090807060504030201000 100 200 300 400 500 600 700Time (minutes)Ni 330kg/t Co 330kg/t Mn 330kg/t Fe 330kg/tNi 200kg/t Co 200kg/t Mn 200kg/t Fe 200kg/tMetal Extraction (%)----- End of picture text -----

Further test results utilising lower acid concentrations are expected to be released in the coming weeks.

Barra Resources Limited (ABN 86 093 396 859) Mercury House, Level 3, 33 Richardson Street, West Perth, Western Australia 6005 Telephone: (08) 9481 3911 Facsimile: (08) 9481 3955

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Dean Goodwin Managing Director Barra Resources Limited

The information in this report which relates to the Mt Thirsty Mineral Resource is based on information compiled by Alan Miller, a full time employee of Golder Associates Pty Ltd and who is a member of the Australasian Institute of Mining and Metallurgy. Alan Miller 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 January 2005 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Resources Committee, the Australian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and the Mineral Council of Australia.” Alan Miller consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dean Goodwin who is a Member of the Australian Institute of Geoscientists. Dean Goodwin is a full-time employee of the Company. Dean Goodwin 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 2005 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dean Goodwin consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Barra Resources Limited (ABN 86 093 396 859) Mercury House, Level 3, 33 Richardson Street, West Perth, Western Australia 6005 Telephone: (08) 9481 3911 Facsimile: (08) 9481 3955