FOCUS MINERALS LTD — Capital/Financing Update 2007

Jul 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 July 2007

NEPEAN NICKEL PROJECT FEASIBILITY COMMENCES

Shaft Refurbishment Underway, New Exploration Targets Defined

WA nickel and gold company Focus Minerals Ltd (ASX: FML ) has further advanced plans to fast track the development of the Company’s wholly-owned Nepean Nickel Project near Coolgardie, Western Australia, with the commencement of the first stage of feasibility work.

The Nepean Nickel Project is estimated to host an Inferred Resource totaling 591,300t @ 2.2% Ni . The Project is centered on the historic Nepean Nickel Mine, which produced 32,303 tonnes of nickel metal between 1970 and 1987 at a recovered grade of 2.99% nickel from 1.1Mt of ore.

The feasibility study will focus on a detailed assessment of the economics of extracting remnant mineralisation from above the 7 Level in the northern part of the existing mine (Figure 1). Underground extraction of fresh ore will minimise technical risks (geotechnical and metallurgical) associated with the project and enable a relatively fast ramp up to production.

Rehabilitation of the shaft to facilitate access to assess the condition of existing mine infrastructure has commenced, with installation of a winder and maintenance of the shaft collar and head frame well underway. Inspection of the shaft by remote video indicates that it is in good condition and that the mine is dry to the 11 Level. Once the shaft has been made safe for general access, work will focus on re-entering the workings between the 2 and 7 Levels on the northern side of the mine so that an assessment of the remnant mineralisation can be made.

Drilling to recover metallurgical samples and test exploration targets on the northern margins of the mine has also commenced. The program will recover PQ core samples from existing underground resource blocks which will be utilised for metallurgical studies and follow-up assessment of previously reported intercepts in RC drilling off the northern end of the mine. The intercepts are outside of the current remnant blocks and may provide additional material for an underground operation. They include:

1m @ 11.38%Ni; 1m @ 1.38%Ni; and 2m @ 1.21%Ni.

In addition, interpretation of a recent VTEM survey by Southern Geoscience Consultants has defined several previously unknown conductors in an area approximately 1.5km to the South East of the Nepean Mine. These targets have not been effectively tested by historical drilling. Focus will conduct RC drilling and further downhole EM in conjunction with drilling at the mine to further assess these anomalies and prioritise them for future work (Figure 2).

“We are very pleased with our progress on the project, especially in an environment where it is difficult to secure appropriate personnel and equipment, and expect to see steady progress on rehabilitation of the existing mine infrastructure,” said Focus Minerals Managing Director, Mr Peter Williams. “We are also very excited about the exploration targets that have been developed and are optimistic about expanding the resource base for the project.”

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: Nicholas Read/Susan Bower Read Corporate (inc Jan Hope & Partners) Telephone: (+61-8) 9388-1474

On behalf of: Peter Williams, Managing Director Focus Minerals Limited Telephone: (+61-8) 9215-7888 Web: www.focusminerals.com.au

BACKGROUND INFORMATION – FOCUS MINERALS LIMITED

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

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. Over 2.6 million ounces of gold has been produced from the Coolgardie gold belt alone since 1892. The Redemption Joint Venture has the mineral rights to more than 210sq km of tenements including Measured, Indicated and Inferred Resources totalling 1.6 million ounces of gold as well as the 1.2mtpa Three Mile Hill processing plant.

Focus is completing a scoping study on its wholly-owned Nepean Nickel Project, 25km south of Coolgardie, with a view to recommencing mining operations from the historic production centre in 2008.

The Company is also investigating two nickel targets identified by geochemical work completed by the Redemption Joint Venture at The Mount Gold-Nickel Project, near Widgiemooltha, 35km south west of Kambalda. The Mount is located on the eastern margin of the Widgiemooltha Dome, highly prospective for both nickel and gold.

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