FOCUS MINERALS LTD — Capital/Financing Update 2007

Jul 31, 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 1 August 2007

DEVELOPMENT CONTRACT WITH BARMINCO FOR HIGH-GRADE PERSEVERANCE DEPOSIT COMMENCEMENT OF MINING ON SCHEDULE FOR DECEMBER 2007; MULTIPLE EARLY CASH-FLOW OPTIONS

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 confirmed plans to commence near-term mining at the Coolgardie Gold Project in Western Australia after securing a development contract with mining services group Barminco Ltd for the high-grade Perseverance deposit.

The RJV and Barminco have signed a Letter of Intent (LOI) for the development of a 400m decline to the Perseverance orebody, to facilitate underground exploration and resource definition programs.

Commencement of the Perseverance decline from fully-permitted underground infrastructure is scheduled for the first week of August. The decline is expected to be completed in October, ahead of the proposed commencement of mining at Perseverance in December 2007.

Preparatory work is underway for the decline, which is an extension of existing underground workings (Figure 1) within the Tindals Mining Centre (Figure 2), centrally located within the Coolgardie Gold Project.

The RJV anticipates further development of the decline, to facilitate production, following completion of an advanced Bankable Feasibility Study targeting the priority development of Perseverance for near-term mining.

Historic workings for several other deposits located within the Tindals Mining Centre are also under assessment for potential near-term mining. These include the Cyanide, Countess and Empress ore bodies which, combined with Perseverance, represent a gold inventory currently totaling 208,146 ounces.

An upgraded resource for the key Perseverance deposit is anticipated in the September Quarter 2007, based on recent outstanding results, assays pending for an additional eight completed holes and initial calculations from ongoing drilling programs. Total resources for the Tindals Mining Centre are expected to be boosted further following completion of a resource drilling program scheduled to commence in late August-early September for an extension to the Countess deposit.

The total Tindals inventory and potential mining options resulting from the further assessment of historic mine workings will be incorporated in the Perseverance Bankable Feasibility Study.

Today’s announcement follows an agreement finalised by the RJV during July 2007 securing priority toll treatment of up to 480,000tpa of ore at the Greenfields processing facility, which is owned and operated by Barminco subsidiary Higginsville Mining Pty Ltd. The Greenfields plant is centrally located within the Coolgardie Gold Project, on RJV land adjacent to the fully-permitted 1.2mtpa Three Mile Hill facility whollyowned by the RJV.

“Our early cash-flow options from the Coolgardie Gold Project are now expanding rapidly, as a direct result of our comprehensive assessment and planning work over the past two years,” Focus Minerals’ Managing Director, Mr Peter Williams, said.

“We are pleased to have secured the development contract with Barminco and look forward to a long-term Mutually beneficial relationship as we build and develop this project to realise its substantial potential. All the pieces are coming together for the anticipated commencement of mining later this year.”

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 (inc Jan Hope & Partners) Focus Minerals Limited Telephone: (+61-8) 9388-1474 Telephone: (+61-8) 9215-7888 Web: www.focusminerals.com.au

Figure 1 Proposed Perseverance Exploration drive from existing Tindals workings

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Figure 2 Tindal Mining Centre site layout including existing infrastructure

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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.