FOCUS MINERALS LTD — Capital/Financing Update 2010

Jan 13, 2010

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

----- Start of picture text ----- ASX Release January 14 [th] , 2010----- End of picture text -----

==> picture [594 x 113] intentionally omitted <==

==> picture [166 x 713] intentionally omitted <==

Production set to soar to 100,000 ounces a year after completion of mill

Focus Minerals (ASX:FML) is pleased to announce that it is set to become a 100,000-ounce-a-year-plus gold producer within 12 months after commissioning the Three Mill Hill mill at its rapidly growing Tindals Mining Centre in WA’s Eastern Goldfields.

As a result, Focus completed its first significant gold pour from Three Mile Hill on Wednesday 13[th] January, which was refurbished at a cost of $16.96 million.

Until now, Focus has been toll treating ore from its Tindals Mining Centre in Coolgardie at the nearby Greenfields mill.

The Three Mile Hill plant has an annual capacity of 1.2 million tonnes, enabling Focus to increase production to an expected 80,000oz this year and more than 100,000oz next year. Importantly, the Three Mile Hill plant will enable the Company to cut operating costs and benefit from a more consistent production profile.

Focus Chief Executive Campbell Baird said: “I would like to thank everyone involved in this fantastic achievement, particularly our Chief Operating Officer, Peter Williams, for his commitment and dedication in overseeing the project.”

In what was a landmark event for the Company, project manager Como Engineers completed the official handover of Three Mile Hill on Christmas eve and just eight months after work on the refurbishment started under a $16.96 million fixed-price contract.

Focus is also pleased to report that on January 7 it commenced a 35-day milling campaign at the Greenfields mill using a blend of Perseverance and Countess ore. In addition, strong progress is being made on a 110m-strike drive at the Mount Deposit, where over 3,000 tonnes of ore at better than 10g/t from development drives has already been trucked to Coolgardie.

Focus Chief Executive Campbell Baird said: “It is a demonstration of the strength of the Coolgardie operations that we are able to run two mills simultaneously for a period of over a month.

“The past year has proved to be a watershed for Focus, having successfully achieved progress on several fronts including expansion from one operating underground mine to three, completing an exploration decline and starting trial mining at The Mount. It also delivered into four toll milling campaigns at Greenfields and ramped up exploration with four drilling rigs actively drilling underground and on surface. With such a successful team the Company and investors have every reason to be confident about the outlook for 2010.”

ENDS

==> picture [595 x 21] intentionally omitted <==

----- Start of picture text ----- ASX Release January xx, 2010----- End of picture text -----

==> picture [113 x 79] intentionally omitted <==

Released by: On behalf of: Paul Armstrong/Nicholas Read Campbell Baird, CEO Read Corporate Focus Minerals Ltd Telephone: (+61-8) 9388-1474 Telephone:(+61­8)92157888 Web: www.focusminerals.com.au

COMPETENT PERSON’S STATEMENT

The information in this report relating to Exploration Results and Mineral 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 [595 x 67] intentionally omitted <==