FOCUS MINERALS LTD — Capital/Financing Update 2008

Nov 30, 2008

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Two Goals, One Focus

ASX/Media Release 1 December 2008

Making Sustainable Gold and Nickel Production a Reality

69% INCREASE IN PROBABLE ORE RESERVES AT TINDALS MINING CENTRE TO 128,700oz

32% INCREASE IN PERSEVERANCE GOLD RESERVE TO 100,00oz

MAIDEN RESERVE DEFINED AT COUNTESS DEPOSIT FOR 28,700oz

HIGHLIGHTS

• 32% increase in pre-mine Probable Ore Reserve at Perseverance Gold deposit to 100,000 ounces (initial Reserve was 76,000 ounces).

• 14,500 ounces mined to date from Perseverance deposit, leaving approximately 85,500 ounces in-ground

• 28,700oz Probable Ore Reserve defined at nearby Countess Deposit – development underway for a short decline and strike drive to access Countess from the existing Empress workings.

• November/December milling campaign currently underway with expected production of 7,500 ounces from a blend of Perseverance and Countess ore.

Australian gold producer, Focus Minerals Ltd (ASX: FML “Focus”), is pleased to announce a significant upgrade to gold reserves at the Tindal’s Mining Centre, located at Coolgardie, Western Australia.

The pre-mine ore reserve for the Perseverance Deposit has increased to 100,000 ounces , representing a 32% increase on the initial Ore Reserve estimate of 76,000oz outlined in April this year and providing a substantial boost to the Perseverance mine life, which now extends out to approximately two years.

Since commissioning of the Perseverance deposit, approximately 14,500 ounces of gold has been mined with 10,500 ounces of gold produced through milling campaigns at the nearby Greenfields processing plant.

The latest milling campaign, which commenced on November 17, is expected to run for 32 days and will, for the first time, involve the blending of Countess ore together with stoping ore from the Perseverance deposit.

This represents the first stage in the planned expansion of the project pipeline to include surrounding deposits within the tenement area.

Countess Reserve Estimate

In addition to the Perseverance upgrade, a Probable Reserve of 28,700 ounces has been defined through recent geological modeling of the nearby Countess Deposit. This is the first gold reserve estimate outside of the Perseverance deposit and provides Focus with a strong pipeline for continued full-scale production.

A Pre-Feasibility Study was undertaken on the Countess Resource which was aimed at determining the economic viability of the new resource and the synergies of mining Countess in conjunction with the Perseverance deposit. The Countess reserve is expected to increase as further drilling is carried out both up and down plunge.

Commenting on the upgrades, Focus’ Managing Director Mr Peter Williams said: “We are very pleased to increase the Perseverance Reserve, as this clearly forms the foundation of our short-term production outlook. In addition, the development of the Countess deposit is a milestone achievement, as this is the first stage of the development of our extensive project pipeline.

“The definition and development of further deposits within our tenement area is crucial to our future growth aspirations and the continuing excellent revenue streams from our existing production assets will be used to fund ongoing development strategies within the area,” added Mr Williams.

ENDS

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

COMPETENT PERSON’S STATEMENT

The information in this report relating to Resources and Reserves are based on work supervised by Mr Paul Griffin who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Griffin 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 being reported. Mr Griffin is a consulting mining engineer for Focus Minerals Ltd and consents to the inclusion of the material in the form and content in which it appears.

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 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. Focus holds the mineral rights to more than 210sq km of tenements including an extensive inventory of Measured, Indicated and Inferred gold resources as well as the 1.2mtpa Three Mile Hill processing plant.