FOCUS MINERALS LTD — Capital/Financing Update 2009

Mar 31, 2009

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ASX Release 1 APRIL 2009
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ASX RELEASE – 1 APRIL 2009

Company Update

• Seventh milling campaign now complete ~ final results to be released upon reconciliation of production figures

• Recent exploration drilling programme encounters significant highgrade down-hole intercepts at Perseverance Gold Deposit – indicates structural repetition of Perseverance mineralisation

Best intercepts at Perseverance included:

• 4.93m @ 31.66g/t

• 5.01m @ 14.98g/t. and

• • 1.47m @ 19.85g/t;

• Recent face sampling from the 225 South level confirm high grade drilling results at Perseverance. Average face sample grades include:

• Face 26 – 49.66 g/t

• • Face 28 – 58.01 g/t • Face 29 – 27.92 g/t • Face 32 – 34.63 g/t

• High-grade intercepts below the Empress Deposit confirms mineralisation is open at depth. Plans for development now underway.

Best intercepts at Empress include:

• 6.44m @ 10.37g/t;

• 4.00m @ 8.25g/t; and

• • 4.24m @ 5.28g/t.

Australian-based gold producer Focus Minerals Ltd (ASX: FML; “Focus”) is pleased to provide an update on recent company activities, including interim results from the current milling campaign.

The Company is also pleased to report significant new high-grade gold intersections from drilling programs being undertaken at both the Perseverance and Empress Gold Deposits, located within the broader Tindals Mining Centre. The recent drilling – which confirms the continuity of mineralisation at depth at the Empress Deposit – enables Focus to begin to plan for the development of its third project, with feasibility planning now underway at Empress.

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Current Milling Campaign Update

Focus is nearing the end of the seventh milling campaign since production began in April 2008. The current campaign started on 27 February 2009 and concluded this morning for a total of 33 milling days.

Focus is expecting to produce around ~8,800 ounces of gold from this current milling campaign, enabling the Company to continue to deliver into its hedge contracts (7,000 ounces) with the balance of ounces being sold into the spot market.

Following the conclusion of the current milling campaign deliveries the Company will have a further 19,378 ozs outstanding under existing hedge contracts.

The campaign has been remarkably successful however challenges were encountered in the final 10 days of the campaign. During this period ore with grades of greater than 8.0 g/t were continuously processed however higher than expected sulphur grades were encountered. High sulphur grades significantly affect recovery of the Perseverance ore, and in order to maintain recovery during these 10 days at greater than 90%, mill throughput was reduced by 20%.

The high sulphur levels experienced at the end of the campaign further highlights the benefits of moving from a toll treating approach, with discrete milling campaigns, to a continuous operation utilising Focus’s own processing plant (i.e. Three Mile Hill). The re-commissioning of the Three Mile Hill plant is expected to provide Focus with a much more efficient and cost-effective means of blending the multiple ore sources from Focus’ Coolgardie Operations.

The next milling campaign, Campaign 8, is due to commence early May 2009.

Recent Drilling Results from Perseverance

Recent drilling results from below the Perseverance deposit have confirmed the potential for structural repetition of Perseverance-style mineralisation at depth (see Figure 1). A total of six (6) diamond holes of an eight hole programme have been completed to date, with the drilling encountering down-hole intersections 50-100m south and down the structural control of the known mineralisation at Perseverance. The best of these intersections included:

• 4.93m @ 31.66g/t;

• 5.01m @ 14.98g/t; and

• • 1.47m @ 19.85g/t.

(Please see Appendix 1 for full results)

The drilling has further strengthened Focus’ geological model for the Perseverance mineralisation – developed from exploration drilling, down-hole electromagnetic (DHEM) surveying and underground geological mapping The new zones are particularly encouraging as they have the potential to provide Focus with additional high-grade, relatively near-surface resources which can be easily and economically accessed via the existing Perseverance decline, given their proximity to the Company’s current mining operations.

Down-hole electromagnetic (DHEM) surveys are planned to be conducted on two of the recently drilled holes as soon as the current drilling programme has been completed. This will assist in defining the size of the current mineralised zone and will also aid in more efficient targeting of future drilling.

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225 South Development – High Grade Face Samples

Recent face sampling on the newly developed 225 South level has returned significant, high grade assay results that average greater than one ounce per tonne. Results include:

• Face 26 – 49.66 g/t

• Face 28 – 58.01 g/t

• Face 32 – 34.63 g/t

(Please see Figure 3 for photo).

These recent face samples contain higher grades and widths of mineralisation than that seen in surrounding drill holes (PEGC0208 true width 1.37m @ 35.47g/t, PEXP0008 true width 1.47m @ 19.85gt). Now in development, these recent face samples from the 225 level have confirmed that the mineralisation is of much higher grade and width (Please see Figure 1).

This indicates the potential for higher grade pods of mineralisation, which may be associated with linking structures running between the two main lodes, to occur in areas where grades from drilling are marginal. Further drilling is currently being carried out at depth and should enable a better understanding of the distribution of high-grade mineralisation in this area.

Excellent Results from Empress – Plans for Accelerated Development Underway

The Empress Deposit forms part of the Tindals Mining Centre (see Figure 5a. and 5b.) and is hosted by a mineralised diorite system. Historically, the Empress mine produced an average of 48,000t @ 5.44g/t (reconciled) per level, which equates to ~420 ounces per vertical metre. The 1120m level is the last level developed at Empress and produced 49,280t @ 4.38g/t.

Recent drilling results immediately below the Empress deposit have confirmed that mineralisation is open at depth. The best of these intersections included:

• 6.44m @ 10.37g/t;

• 4.00m @ 8.25g/t; and

• 4.24m @ 5.28g/t.

(Please see Appendix 2 for the full results and Figure 4 for core photo).

Modelling of the Empress extension is underway with these latest results providing Focus with the confidence to undertake a study with the view to bringing the Empress deposit into production towards the end of 2009.

Importantly, only 50 metres of development is required to bring these additional levels into production which will be directly below established underground infrastructure. It is important to note that this material presently cannot be processed due to mill constraints, and thus it will form a separate source of feed as planned once the 3 Mile Hill Mill gets up and running.

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Summary

These latest drilling results increase the potential of the Perseverance and Empress deposits to deliver additional high-grade resources; the latest results follow a recent 32% increase in pre-mine ore Reserves to 100,000 ounces, which in itself provided a substantial boost to the Perseverance mine life – which currently extends out to approximately two years.

“We view the definition and development of additional high-grade, easily accessible resources at Perseverance and Empress as central to both our short and long-term objectives for sustainable production,” said Focus’ Chief Executive Officer, Mr Campbell Baird.

“The results from the current extension drilling are highly encouraging and provide further evidence that the Perseverance ore body is open to the south, as our geological modelling had indicated and that the Empress ore body continues at depth.

“The exploration and mining team – under the guidance of our Exploration Manager Garry Adams and Mining Manager Clint Baker – is to be congratulated on their success’ he added.

ENDS

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

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.

Focus commenced maiden commercial gold production in April 2008 through ore sourced from the Company’s flagship Perseverance Deposit (Probable Reserve of 129,000oz). Earlier this year, the nearby Countess Deposit (Probable Reserve of 29,000oz) was also brought into production with ore from both deposits currently being milled at the nearby Greenfields treatment plant.

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Figure 1 ‐ Perseverance long section looking west (on local Tindals grid)

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Perseverance Geology

The Perseverance deposit is a quartz-sulphide lode deposit occurring within the Burbanks Basalt. The main lodes at Perseverance occur near the western portion of a folded diorite. Within the Coolgardie region diorites either host or are associated with the majority of gold ore bodies including the Tindals, Brilliant, and Dreadnought deposits.

The lodes are a series of quartz-sulphide veins with variable amounts (up to 100%) of sulphides which are mostly pyrrhotite (see Figure 2 below). The Main Lode East is a quartz-sulphide breccia while the Main Lode West generally has higher sulphide content but is less brecciated.

The mineralisation appears to be controlled by south plunging fault controlled diorite bodies and north striking faults. This results in north plunging mineralised shoots which are constrained by the southerly plunging faultcontrolled diorite bodies.

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Figure 2 ‐ High‐grade Perseverance intersection (4.93m @ 31.66g/t)

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Appendix 1 ‐ Recent Perseverance Exploration Diamond Drill Results

Hole Number	Northing	Easting	RL	Azimuth	Dip	Total Depth	From (m)	To (m)	Down Hole Width (m)	True Width (m)	Grade (g/t Au)
PEXP0006	9743	5251	267	285	-35	75.05	47.3	48.07	0.77	0.71	14.87
PEXP0007	9743	5251	266	282	-57	100	54.40	55.40	1.00	0.73	2.63
PEXP0008	9745	5253	267	341	-44	89.88	67.38	68.85	1.47	0.97	19.85
PEXP0010	9745	5253	268	315	-65	110.05	66.41	67.22	0.81	0.69	5.09
							71.70	72.38	0.68	0.45	3.57
							88.33	93.26	4.93	3.07	31.66
						120.15	56.62	57.92	1.30	0.68	47.35
PEXP0013	9746	5255	268	347	-56		66.87	68.22	1.35	0.70	17.97
							70.72	72.00	1.28	0.67	10.14
PEXP0014	9746	5255	268	332	-73	145.15	65.22	66.57	1.35	0.67	6.46
							72.82	81.62	8.80	4.44	4.84
							99.16	102.08	2.92	1.37	5.46
							115.02	120.03	5.01	2.45	14.98

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Figure 3 – Perseverance Deposit 225 Level ‐ Face 26 – 58.01 g/t

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Above is a photo of the Perseverance 225 main south drive showing 2.8m wide high grade pyrrhotite‐rich massive sulphide zone in centre of face 26 which averages 58.01g/t across the face.

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Appendix 2 ‐ Recent Empress Diamond Drill Results

Hole Number	Northing	Easting	RL	Azimuth	Dip	TOTAL DEPTH	From (m)	To (m)	Width (m)	Grade (g/t Au)
EMD005	5054	9252	124	316	‐10	80.11	67	69.82	1	5.67
EMD010	5083	9320	113	335	‐21	87	63.56	66.72	3.16	2.78
EMD011	5083	9320	113	345	‐20	107.4	72.31	76.14	3.83	2.58
EMD019	5082	9319	114	322	‐4	71.1	32.5 43.75 55.85	36.74 45.34 58	4.24 1.59 2.15	5.28 3.7 4.43
EMD002	5053	9251	124	284	‐9	92.58	74 77	75 79	1 2	3.74 2.13
EMD020	5083	9320	114	335	‐3	81.5	35.2 43.33 53.89 62.53	41.64 48 54.61 65.51	6.44 4.67 0.72 2.98	10.37 4.84 2.14 7.87
EMD003	5053	9252	124	298	‐10	78	41 68	42 72	1 4	7.96 3.05
EMD004	5053	9252	123	299	‐23	85.1	45.73 74.41	47.82 75.37	2.09 0.96	3.03 7.76
EMD006	5054	9252	123	316	‐22	87	73	75.61	2.61	3.19
EMD007	5054	9253	124	331	‐10	83.09	72	76	4	8.25
EMD008	5054	9253	123	331	‐21	89	76.76	85	8.24	2.66
EMD009	5082	9319	113	323	‐23	77.63	58.01	59.01	1	6.67
EMKE0012	5048	9293	118	333	‐5	55	43	46	3	3.94

Figure 4. High‐grade Empress Intersection (6.44m @ 10.37g/t)

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Figure 5b. Tindals Mining Centre – Plan View

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Figure 5a. Tindals Mining Centre 3D Model – Looking South

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