ENTERPRISE METALS LIMITED — Capital/Financing Update 2009

Oct 26, 2009

ENTERPRISE METALS LIMITED

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ASX ANNOUNCEMENT 27 October 2009

Helicopter-borne EM Survey Commences at Revere Project

SUMMARY

Enterprise Metals Limited (“Enterprise” or “the Company”, ASX: “ENT” ) wishes to announce that a second helicopter borne Versatile Time‐Domain Electromagnetic (“VTEM”) survey has commenced at its Revere Project , between 80‐130km NE of Meekatharra in Western Australia.

The Company previously flew several small VTEM surveys in July 2009 and these surveys located sub‐surface conductors within the Narracoota Volcanics and Doolgunna Formation sediments which are currently being drill tested.

Enterprise is now conducting 2 further surveys along the NE trending Goodin Fault, which represents the faulted contact between the Bryah Basin (Narracoota Volcanics and Karalundi Fm sediments) to the north and the Yerrida Basin (Doolgunna Formation sediments) to the south. (Refer Figure 1).

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Figure 1. Revere – Doolgunna Project, Geology & Prospect Locations

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ENTERPRISE METALS LIMITED ASX REPORT 27 October 2009

DISCUSSION

The gold mineralisation in the Padbury, Bryah and Yerrida Basins is thought to be related to tectono‐ thermal activity during the Capricorn Orogeny, which resulted when the Pilbara and Yilgarn Cratons collided at around 1.8 billion years ago. The distribution of known gold deposits and prospects, which are clustered within the western and central part of the basins, shows a strong spatial association with the intersection of NE and NNW trending faults.

The prominent NE trending Goodin Fault separates the Bryah Group [Narracoota Formation mafic volcanics (“magnetically noisy”) and Karralundi Formation] from the Yerrida Basin sedimentary rocks (“magnetically bland zone”) to the south. The Goodin Fault has a strike length of approximately 100km, and is interpreted to be a major structure that may have provided conduits for mineralising fluids during collisional tectonics. There are numerous gold and copper prospects and geochemical anomalies along the Goodin Fault. Refer Figure 2 below.

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Figure 2. Revere – Doolgunna VTEM Surveys over 1[st] VD Magnetic Image

Ruby Well West Survey

Historical work by Titan Resources in the vicinity of Ruby Well and Goodin’s prospects (1992–1997) focussed on gold exploration in the Narracoota Volcanics and Karralundi and Doolgunna Formations. Titan attributed the observed gold mineralisation to gold bearing quartz veins in dolerites, basalts and interlayered tuffs of the Narracoota Volcanics and adjacent metasediments. Previous regional and follow up MAGLAG sampling (1000m x 1000m & 500 x 500m grid) by Enterprise has identified Cu/Au anomalous areas associated with the Goodin Fault

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ENTERPRISE METALS LIMITED (ACN 123 567 073)

ENTERPRISE METALS LIMITED ASX REPORT 27 October 2009

Lucky Dog Survey

The Lucky Dog prospect is located in rocks of the Bryah Group. Previous MAGLAG sampling by Enterprise at this prospect has defined a prominent Au‐As‐Cu‐Ba zone that is associated with the Goodin Fault.

BACKGROUND TO REVERE PROJECT

The Company’s Exploration Licences are located between 80 ‐ 130km northeast of Meekatharra in Western Australia and cover Palaeoproterozoic rocks affected by the Capricorn Orogen, and are predominantly located within the Yerrida Basin. The primary target sought by the Company is one or more large mesothermal‐style gold stockwork systems and/or volcangenic massive sulphide systems.

Drilling by Sandfire Resources NL (“Sandfire”, ASX: SFR) at the DeGrussa Prospect some 10km north of Doolgunna station continues to intersect significant intervals of copper sulphides and gold below a geochemically depleted regolith. The host to the DeGrussa massive sulphides is believed to be the Narracoota Volcanics. Sandfire have reported that ground EM surveys have identified two major sub‐surface conductors which are associated with these massive sulphides.

Enterprise is currently drill testing a number of combined EM/geochemical targets which are prospective for gold only or copper/gold.

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Dermot Ryan Managing Director

Contact:

Telephone: 08 9436 9200 Facsimile: 08 9436 9299 Email: admin@enterprisemetals.com.au

The information in this announcement that relates to Exploration Results has been compiled by Mr Dermot Ryan, who is a Fellow of the Australian Institute of Geoscientists, and a full time employee of geological consultancy Xserv Pty Ltd. Mr Ryan has sufficient relevant experience in the techniques being reported and styles of mineralisation and types of deposit under consideration, and in the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code), and consents to the inclusion of the information in the form and context in which it appears .

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