FOCUS MINERALS LTD — Capital/Financing Update 2009

Oct 28, 2009

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HIGH-GRADE RESULTS POINT TO SIGNIFICANT INCREASE IN RESOURCES AT PERSEVERANCE

VISIBLE GOLD IN DRILLING CORE PROVIDES STRONG EVIDENCE OF EXTENSIONS IN THE OREBODY

HIGHLIGHTS

• Latest underground diamond drilling results at Perseverance deliver highgrade intercepts including:

• 0.95m @ 170.94g/t Au;

• 3.14m @ 12.10g/t Au;

• 0.95m @ 21.33g/t Au; and

• 5.76 @ 3.61g/t Au;

• Results provide more firm evidence that areas surrounding known deposits contain significant additional high-grade mineralisation

• Visible gold in the drill core ( see image below )

• Current holes designed to complete electromagnetic (DHEM) surveys to the south and north of Perseverance

• Diamond drilling will continue to test strike and depth extensions of known deposits at the Tindal’s Mining Centre

Gold producer Focus Minerals (ASX: FML ) is pleased to announce further significant high-grade gold intersections from the current round of drilling at the Tindal’s Mining Centre, Coolgardie.

The results from two holes, which included high-grade down-hole intercepts of 0.95m at 170.94g/t, 3.14m at 12.1g/t, 0.95m at 21.33g/t and 5.76m at 3.61g/t (see Table 1), point to the prospect of further extensions in the Perseverance orebody, paving the way for increases in the current Resource and Reserve estimates.

− Importantly, these high-grade intersections including sections of visible gold (see Figure 2) − are outside of the current resource base and are over 100 metres below the current Perseverance workings (see Figure 1). This reinforces the Company’s belief that areas surrounding the known deposits have the potential to house additional high-grade mineralisation.

Planning is now underway to follow up these intersections and target further extensions to the south and at depth of the existing Perseverance Resource.

Focus has Resources of 1.9 million ounces including 93,000 ounces in Reserves (refer Table 2 attached for details). After already paying $16.8 million for the mill refurbishment, the Company has presently available cash and bullion totalling $19.4 million which allows the company to aggressively ramp up drilling programmes.

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The Company posted a $3.15 million underlying operating profit for the past financial year after producing 41,400 ounces. Production is expected to climb to 80,000 ounces in 2010 and to more than 100,000 ounces in 2011.

Focus Chief Executive Officer, Mr Campbell Baird, said the results were immensely exciting and provided strong evidence that the Company’s extensive geological modelling of the Tindal’s area was accurate.

“We’ve undertaken a mountain of modelling and optimisation work over the past 9 months and it’s very exciting and a credit to our exploration team that we are now seeing the rewards for this work,” he said.

“The opportunity for multiple repeats of the Perseverance deposit are more than possible as we have only been − drilling in this area for 12 weeks now this further demonstrates the strong potential for growth in our Resource and Reserve base at Coolgardie,” he added.

With continuing excellent results coming out of its exploration programme, Focus is planning on mobilising a second (surface) drill rig to site in early November and potentially a third drill rig in January next year.

“This is particularly exciting time for Focus Minerals, with more drilling planned and the imminent commissioning of the Three Mile Hill Gold Plant later this year, we are in for a very busy end to 2009 and a great beginning for 2010!” said Mr Baird.

ENDS

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

Table1 - Perseverance Diamond Drill Results (In local Tindals Grid)

Table1- P	erseveranc	e Diamo	nd Dr	ill Results	(In lo	cal Tind	als Grid	)
Hole Number	Northing	Easting	RL	Azimuth	Dip	Total Depth	From (m)	To (m)	Down Hole Width (m)	Grade (g/t Au)
PEXP0022	9778	5294	232	345	-60	169.99	102.12	105.26	3.14	12.10
							106.97	107.39	0.42	5.17
							107.83	108.52	0.69	4.01
							130.01	130.96	0.95	170.94
							157.28	157.63	0.35	3.63
							162.90	168.66	5.76	3.61
PEXP0023	9776	5293	232	274	-75	200.13	119.94	120.89	0.95	21.33
							153.25	154.05	0.80	2.19

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Figure 1 – Perseverance long section

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Figure 2 – Visible gold (scale is a 20 cent coin)

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COMPETENT PERSON’S STATEMENT

The information in this report relating to Resources is based on work supervised by Dr Garry Adams who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Dr. Adams 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. Dr. Adams is Exploration Manager of 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.

Table 2. - Focus Minerals Limited – Resource and Reserve Summary at 30 September 2009

		Grade – Au (g/t)	Contained Ounces - Au
Classification	Ore Tonnes
Total Measured & Indicated Resource	11,511,000	2.17	801,570
Total Inferred Resource	11,753,777	2.90	1,097,055
**Grand Total **	23,264,777	**2.54 **	1,898,625
Probable Reserves and Stocks
	767,000	3.80	93,000

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