FOCUS MINERALS LTD — Capital/Financing Update 2007

Oct 9, 2007

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PERTH

Level 3 105 St Georges Terrace Perth Western Australia 6000 Phone: 61 8 9215 7888 Fax: 61 8 9215 7889 Email: pwilliams@focusminerals.com.au

ACN 005 470 799

MEDIA / ASX RELEASE 10 October 2007

OUTSTANDING RESOURCE UPGRADE FOR HIGHGRADE PERSEVERANCE DEPOSIT

FIRST-PHASE PERSEVERANCE DECLINE DEVELOPMENT COMPLETED ON TIME AND UNDER BUDGET

WA gold and nickel company Focus Minerals Ltd (ASX: FML ) and its Redemption Joint Venture (RJV) partner Canadian-based Committee Bay Resources Ltd (TSXV: CBR ) have further advanced the production potential of the Coolgardie Gold Project ahead of the near-term commencement of mining from the project’s key high-grade Perseverance Deposit.

The RJV today announced an outstanding Resource upgrade for the Perseverance Deposit , from an initial JORC-compliant Inferred Resource of 296,000t @ 9.4 g/t Au, for 89,600 contained ounces, to an Indicated Resource of 447,757t @ 6.40 g/t, for 92,066 ounces , (including 324,598t @ 7.79 g/t for 81,296 ounces) and an Inferred Resource of 406,458t @ 2.68 g/t, for 35,075 ounces .

The new Perseverance Resource will be incorporated into an advanced Bankable Feasibility Study targeting the commencement of mining at the Coolgardie Gold Project in the first quarter of 2008.

An underground grade control drill program has the potential to further upgrade the Resource at Perseverance Deposit, which will be the first of several key central ore bodies to be mined at the project. The grade control program is being conducted from the Perseverance decline development, of which the first 500m has been completed one month ahead of schedule and A$500,000 (20%) under budget.

Together with a new geological model incorporating the most recent drilling, results from ongoing EM surveys along strike to the north and south of the Perseverance zone are expected to identify additional targets, forming the basis of new underground infill and exploration drilling programs.

In addition to the ongoing development program at Perseverance, the RJV partners are continuing to drill the nearby Countess Deposit with the aim of upgrading the Countess resource in time for inclusion in the Bankable Feasibility Study.

The Countess and Perseverance ore bodies are two of several key deposits comprising the Tindals Mining Centre, which is centrally located within the Coolgardie Gold Project. Work is also continuing within the Tindals Mining Centre at the Empress and Cyanide (Tindals East) deposits, in order to fast-track further delineation and development of the greater area.

The Perseverance Resource upgrade has increased the current combined Tindals Mining Centre inventory to an Indicated Resource measuring 288,468 ounces and an Inferred Resource totaling 234,085 ounces . Historically the deposits comprising this centre have produced a total 500,000 ounces from both open pit and underground operations.

“Our first upgrade for the Perseverance Resource, together with the rate of decline development towards this exceptional ore body, is particularly encouraging,” Focus Minerals’ Managing Director, Mr Peter Williams, said.

“This deposit remains open along strike and down dip and although we are extremely pleased with the results achieved to date, the decline, which starts from the existing Tindals Mining Centre (Empress) underground infrastructure, will support our accelerated investigation of this key system.

“The total metres completed to date by our contractor, Barminco Ltd, represent 35% more metres of development than we had anticipated at this stage,” he added.

“Our progress continues to underpin our confidence and we look forward to reporting more good news from this critical development, our ongoing programs across the Tindals Mining Centre and ultimately, our Bankable Feasibility Study.”

Table 1 Perseverance Resource

Zone Category	Volume	Tonnes	**Aug/t **	Au g/t Cut1	Uncut Ozs	Cut1 Ozs
Quartz - Sulphide Inferred Indicated	54,988 109,984	157,036 324,598	2.79 9.35	2.77 7.79	14,086 97,576	13,985 81,296
Diorite Inferred Indicated	86,285 42,469	249,422 123,159	3.06 3.94	2.63 2.72	24,538 15,601	21,090 10,770
Total Indicated	152,453	447,757	7.86	6.4	113,176	92,066 35,075
Total Inferred	141,273	406,458	2.96	2.68	38,624

Resource reported at 1.0 g/t Au lower cutoff grade 1 Upper cut of 35 g/t Au used for quartz sulphide zone, Upper cut of 15 g/t Au used for Diorite zone

The updated Perseverance Resource model is based on 10,034m of drilling in 22 diamond core and 23 reverse circulation drill holes. The Resource comprises two zones - a main quartz-sulphide lode (QSL) and a diorite stockwork zone (DSZ).

Table 2 Tindals Mining Centre Resources

Indicated
Resource	Tonnes	Au g/t	Ounces
Dreadnought	3,023,819	2.02	196,402
Perseverance QSL	324,598	7.79	81,296
Perseverance DSZ	123,159	2.72	10,770
Total Indicated	3,471,576	2.58	288,468
Inferred
Resource	Tonnes	Au g/t	Ounces
Dreadnought	434,342	1.76	24,580
Perseverance QSL	157,036	2.77	13,985
Perseverance DSZ	249,422	2.63	21,090
Tindals East	367,000	5.54	65,367
Empress	129,500	4.68	19,485
Countess UG	246,000	4.26	33,692
Big Blow	268,000	2.72	23,406
Empress Alicia	550,000	1.55	27,320
Happy Jack	107,000	1.5	5,160
**Inferred Total **	2,508,300	2.90	234,085

COMPETENT PERSON’S STATEMENT

The information in this report relating to Resources and Reserves are based on work supervised by Mr Chuck McCormick who is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr McCormick has the relevant experience as a “Competent Person” as defined in the 2004 edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves in relation to the mineralisation reported on. Mr McCormick is Exploration Manager of Focus Minerals Ltd and consents to the inclusion of the material in the form and content in which it appears.

ENDS

Released by: On behalf of: Nicholas Read/Susan Bower Peter Williams, Managing Director Read Corporate Focus Minerals Ltd Telephone: (+61-8) 9388-1474 Telephone: (+61-8) 9215-7888 Web: www.focusminerals.com.au

BACKGROUND INFORMATION – FOCUS MINERALS LTD

Focus Minerals Ltd (ASX: FML ) is an Australian-based exploration and development group whose focus is to become a significant gold and nickel producer in the Coolgardie-Kalgoorlie-Widgiemooltha region of Western Australia.

Focus Minerals is currently fast tracking development of its wholly-owned Nepean Nickel Project (current estimated resource totaling 591,300t @ 2.2% Ni) located 25km south of Coolgardie. Focus has a view of recommencing mining operations from the historic production centre in 2008.

Through its Redemption Joint Venture with Canadian-based Committee Bay Resources Ltd, Focus Minerals is the largest landholder in the Coolgardie Gold Belt located in Western Australia, 560km east of Perth and 35km west of the ‘Super Pit’ in Kalgoorlie-Boulder. More than 2.6 million ounces of gold has been produced from the Coolgardie gold belt alone since 1892. The Redemption Joint Venture holds the mineral rights to more than 210sq km of tenements including Measured, Indicated and Inferred Resources exceeding 1.6 million ounces of gold as well as the 1.2mtpa Three Mile Hill processing plant.