FOCUS MINERALS LTD — Capital/Financing Update 2011

Apr 18, 2011

19 April 2011

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ASX ANNOUNCEMENT

FOCUS COMMENCES DEVELOPMENT OF THREE NEW OPEN PITS AT TINDALS MINING CENTRE

• Open pits aimed at increasing Focus‟ production by 30,000oz pa

• Pits will form Focus‟ third production platform in WA goldfields

• Increase in open pit probable reserves by 31%

• Drilling set to start on additional open pit targets at Tindals

Australian gold producer Focus Minerals (ASX: FML) is pleased to announce that it has started development of three open pits at its Tindals Mining Centre in Coolgardie, Western Australia, putting the Company on track to increase annualised production by 30,000 ounces.

Focus has appointed Kalgoorlie-based mining contractor Barcon to develop the pits and clearing has now commenced.

The open pits at the Tindals Mining Centre will form the third leg of Focus’ growing production strategy, joining its existing underground mining operations at the Tindals Mining Centre and its newly opened mine at The Mount, 80km to the south.

The pits will provide Focus with an important low-cost production base within 5km trucking distance of its Three Mile Hill processing plant in Coolgardie.

“This is another significant step forward in Focus’ plan to ramp-up production to 100,000oz in 2011 and then to 130,000oz in 2012,” Focus Chief Executive Campbell Baird said.

“We started 2011 with just one operating mine and in the space of four weeks we have commenced ore development from the Company’s second mine at The Mount, and now development of the third production centre at the open pits is underway.”

Focus will commence mining at the Empress, Big Blow and Dreadnought pits. Mr Baird said the three pits are among 13 deposits and prospects that Focus is developing across the 5km-long and 2km-wide Tindals Mining Centre.

The start of development coincides with a 31 per cent increase in open pit probable reserves to 505,000t at 2.14g/t for 34,700oz (Table 1). The reserve increase has been driven largely by a modest drilling programme at Big Blow that better defined shallow mineralisation to the south and almost doubled the ounces in reserve (Figure 1).

Reserve increases have also occurred at Empress and Alicia as work, including drilling, continued in preparation for mining and allowing for inferred resources to be converted to indicated and included in reserve statements. A small reserve has also been added at Cookes.

Mr Baird said off the back of the recent capital raising, new drilling programmes were about to start at a number of other targets as part of the plan to grow the open pit reserves and develop additional pits (Appendix 1).

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Figure 1 : Big Blow long section showing increased planned pit.

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Table 1 : Tindals Mining Centre Open Pit Probable Reserves.

Location:	Tonnes:	Grade:	Ounces:	% Increase (Au ounces):	Strip Ratio:
Big Blow:	123,000	2.26	8,900	99%	12:1
Dreadnought Nth:	54,000	1.79	3,100	0%	4:1
Empress:	152,000	2.23	10,900	15%	11:1
Alicia:	160,000	2.05	10,600	13%	13:1
Cookes:	16,055	2.34	1,208	NA	11:1
Total:	505,000	2.14	34,700	31%	11:1

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Appendix 1

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ENDS

Campbell Baird, CEO Paul Armstrong / Nicholas Read Focus Minerals Ltd Read Corporate Phone: +61 (0)8 9215 7888 Phone: +61 (0)8 9388 1474

COMPETENT PERSON’S STATEMENT

The information in this report that relates to Exploration Results and Minerals Resources is based on information compiled by Dr Garry Adams who is a member of the Australasian Institute of Mining and Metallurgy. Dr Adams is a full time employee of Focus Minerals and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Adams consents to the inclusion in the report of the matters based on the information in the form and content in which it appears.

The information in this report that relates to Surface Ore Reserves is based on information compiled by Mr Mark Sampson, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Sampson is a full time consultant to Focus Minerals and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves‟. Mr Sampson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

BACKGROUND INFORMATION – FOCUS MINERALS LTD

Focus Minerals Ltd (ASX: FML) is a gold producer based in Western Australia‟s Eastern Goldfields. The company holds the mineral rights to more than 420km[2] of tenements and is the largest landholder in the Coolgardie Gold Belt located 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 is currently in production from underground mining at its flagship Tindals Mining Centre operation in Coolgardie, adjacent to its 1.3Mtpa Three Mile Hill processing plant. In March 2011 it opened The Mount, a new high-grade underground mine, located 85km to the south of the processing plant. The Company will also commence open cut mining at the Tindals Mining Centre in the first half of calendar 2011 from a series of deposits. In addition Focus recently acquired 100% ownership in the highly prospective Treasure Island Gold Project, situated at Lake Cowan at the southern end of the Boulder-Lefroy fault.

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