FOCUS MINERALS LTD — Capital/Financing Update 2010

Jun 14, 2010

==> picture [595 x 20] intentionally omitted <==

----- Start of picture text -----

ASX Release 15 [th] June 2010
----- End of picture text -----

==> picture [595 x 113] intentionally omitted <==

==> picture [164 x 712] intentionally omitted <==

FOCUS ACQUIRES HIGH-GRADE

GOLD-COPPER PROJECT IN WA

Preliminary results from Treasure Island near Kambalda grades up to 49g/t gold and 1% plus copper

HIGHLIGHTS

• Focus strikes deal to acquire 75 per cent stake in the Lake Cowan goldcopper project on the southern extension of the Boulder-Lefroy Fault system in WA’s Eastern Goldfields

• Recent surface outcrop and gossan sampling returns stunning gold mineralisation grading up to 49g/t gold and 1% plus copper

• A detailed geophysical survey and planning for field work underway to identify drill targets

Gold producer Focus Minerals (ASX: FML ) is pleased to announce it has reached agreement to acquire a 75 per cent stake in the Lake Cowan gold-copper project (Treasure Island) near Kambalda in WA’s Eastern Goldfields, where surface reconnaissance exploration has produced grades of up to 49g/t gold and 1% plus copper.

Treasure Island sits on the southern extension of the Boulder-Lefroy Fault, which hosts numerous high-grade gold and nickel deposits, including the Kalgoorlie Super Pit and the recently discovered high-grade Athena gold deposit.

The lease covers 95km[2] and is located approximately 50km southeast of Kambalda with surface sampling coming predominantly from an island that sits within Lake Cowan (See Figure 1 and Figure 6).

The structural setting, local geology and identified gold and copper mineralisation is similar to that found at the historic Paris mine, located 8km to the north (see Figure 1). The Paris mine produced approximately 22,000 ounces of gold at an average grade of 11.1g/t.

Under the terms of the agreement, Focus will acquire a 75 per cent stake in the Lake Cowan Project by issuing 3 million fully paid Focus shares to Semro Pty Ltd and spending $200,000 on exploration over the next 12 months.

Based on the historical and reconnaissance exploration results, Focus believes the Lake Cowan region offers immense potential and has begun planning for a detailed aeromagnetic survey in conjunction with geological mapping and rock chip sampling to identify targets for drilling.

==> picture [595 x 20] intentionally omitted <==

----- Start of picture text -----

ASX Release 15 [th] June 2010
----- End of picture text -----

==> picture [113 x 78] intentionally omitted <==

Semros initial reconnaissance surface sampling was for the purpose of gold exploration with initial lab analysis having an upper copper threshold of one percent. Two samples assayed during this program recorded grades of >1% copper. Subsequent site visits by Focus Minerals to the outcropping island and obvious physical evidence of copper mineralisation (see Figures 2, 3, 4) has resulted in Focus Minerals conducting preliminary analysis using a Niton hand held XRF analyser.

The Niton XRF analysis of a number of core and gossan samples gave results of up to 40% copper (see Figures 2, 3 & 4). While Niton XRF analysis is not considered a substitute for conventional analytical methods the results do give an indication as to the potential copper grades in the area, the samples are being submitted for comprehensive laboratory analysis.

Background and History

Initial rock chip sampling on the island in the early 1990s by Renton Holdings encountered anomalous malachite stained quartz carbonate vein system with values up to 7g/t gold. Renton planned to follow up with drilling; however it was unable to get a rig onto the island due to the weather.

The Lake Cowan project was acquired in 1994 by ASX listed company Welcome Stranger, which carried out additional geochemical and chip sampling (Table 2) as well as detailed mapping of the island (Figure 6) to validate previous work. The mapping on the island delineated a north-south shear with associated 290-310° trending quartz carbonate veins. Gossanous ironstones and malachite and azurite staining within the area appear to be associated with the quartz carbonate veining. The shear is located on the contact of a gabbro and volcanic exhalative shale dolomite sequence and is approximately 40 metres wide. The sequence has been intruded by small dolerite bodies. Results from the rock chip sampling returned assays of up to 6.4g/t gold and 7.4% copper. The wide spaced soil geochemical sampling program undertaken by Welcome Stranger identified a wide anomalous gold zone. The area of copper mineralisation is on the northeastern shore of the island and was not included in the soil sampling program.

Welcome Stranger also attempted to drill test the anomalies. After several attempts to get a rig to the location over a three year period, a small RC rig was mobilised to the island and drilled 12 holes to a maximum depth of 30 metres. The rig could only get to within 50m of the island due to water. Eight of these holes were drilled parallel to the shear structure and missed the mineralisation. The remaining four intersected the structure and encountered anomalous copper and zinc.

A local group of prospectors (Semro Pty Ltd) claimed the lease in late 2007 and has since conducted rock chip sampling and geochemical sampling which revealed anomalies in gold and copper (See Table 1).

Focus Chief Executive Officer Campbell Baird said Focus Minerals was very excited about the Lake Cowan Project.

“It is early days and there remains a lot of exploration work to be done,” Mr Baird said. “However the grades from historical fieldwork and recent reconnaissance are incredibly exciting and we look forward to fully exploring what appears to be a highly mineralised copper-gold project.”

==> picture [595 x 72] intentionally omitted <==

==> picture [595 x 20] intentionally omitted <==

----- Start of picture text -----

ASX Release 15 [th] June 2010
----- End of picture text -----

==> picture [113 x 78] intentionally omitted <==

ENDS

On behalf of: Released by: Paul Armstrong Campbell Baird, CEO 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 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.

==> picture [580 x 72] intentionally omitted <==

==> picture [595 x 20] intentionally omitted <==

----- Start of picture text -----

ASX Release 15 [th] June 2010
----- End of picture text -----

==> picture [113 x 78] intentionally omitted <==

Figure 1 – E15/986 Locality Map

==> picture [478 x 391] intentionally omitted <==

==> picture [595 x 72] intentionally omitted <==

==> picture [595 x 20] intentionally omitted <==

----- Start of picture text -----

ASX Release 15 [th] June 2010
----- End of picture text -----

==> picture [113 x 78] intentionally omitted <==

Figure 2 - Gossan Outcrop – 49g/t Au and >10,000ppm Cu

==> picture [402 x 302] intentionally omitted <==

Figure 3 - Gossan/Rock Chip sample – Average grade 22.13% Cu – highest reading 40% Cu with Niton XRF

==> picture [401 x 302] intentionally omitted <==

==> picture [580 x 72] intentionally omitted <==

==> picture [595 x 20] intentionally omitted <==

----- Start of picture text -----

ASX Release 15 [th] June 2010
----- End of picture text -----

==> picture [113 x 78] intentionally omitted <==

Figure 4 - Pack Sack drill core - Average grade 25% Cu – highest reading 35% Cu with Niton XRF

==> picture [396 x 297] intentionally omitted <==

Figure 5 - View from Lake Cowan shore line to outcropping Island

==> picture [402 x 297] intentionally omitted <==

----- Start of picture text -----

:
----- End of picture text -----

==> picture [595 x 72] intentionally omitted <==

==> picture [595 x 20] intentionally omitted <==

----- Start of picture text -----

ASX Release 15 [th] June 2010
----- End of picture text -----

==> picture [113 x 78] intentionally omitted <==

Figure 6 –Treasure Island Geology Map

==> picture [393 x 555] intentionally omitted <==

==> picture [580 x 72] intentionally omitted <==

==> picture [595 x 20] intentionally omitted <==

----- Start of picture text -----

ASX Release 15 [th] June 2010
----- End of picture text -----

==> picture [113 x 78] intentionally omitted <==

Table 1 - Semro Rock Chip and Gossan Samples analysed at ACME ANALYTICAL LABORATORIES LTD VANCOUVER 2008

Sample	Auppb	Cuppm	Ag ppb	Nippm	Znppm
LCR001	238.9	8423.54	333	1531.5	404.3
LCR002	5.4	220.89	22	75.2	67.9
LCR003	0.6	114.51	13	56.4	47.9
LCR004	4.1	297.54	70	71.2	52.8
LCR005	143.5	>10000	307	482.6	270.6
LCR006	<.2	59.89	7	55	34.1
LCR007	49633	>10000	4471	285.3	222.9
LCR008	12	132.4	6	48.1	35.4
LCR009	179.9	610.08	58	194.6	53.9
LCR010	2	89.99	7	153.8	28
LCR011	682.4	73.99	94	156.6	47.5
LCR012	4	1073.2	116	30.2	34.9
LCR013	1.8	90.75	11	29.8	29.7
LCR014	33.5	67.87	17	3.3	21.1
LCR015	1.8	91.4	5	18.5	26.9
LCR016	6.3	100.51	11	52.9	20.9
LCR017	1.5	150.68	15	52.8	20.9
LCR018	2.5	92.62	8	52.8	22.3
LCR019	1.3	5.01	6	11.1	10.9
LCR020	2.6	38.98	23	52.5	51.8

Table 2 – Welcome Stranger Rock Chip Samples

Sample No	Auppb	Cuppm	Nippm	Znppm
LCROCK 01	1	350	19	3
LCROCK 02	2	46	32	27
LCROCK 03	26	380	310	8
LCROCK 04	78	7.40%	560	330
LCROCK 05	235	8000	2400	600
LCROCK 06	62	1.08%	2350	500
LCROCK 07	7	680	64	29
LCROCK08	1	155	37	19
LCROCK09	2	102	17	13
LCROCK 10	1	175	15	60
LCROCK 11	5	104	11	3
LCROCK 12	8	28	8	215
LCROCK 13	6300	10	11	4
LCROCK 14	18	10	9	2

==> picture [595 x 72] intentionally omitted <==