FOCUS MINERALS LTD — Capital/Financing Update 2011

Jan 23, 2011

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

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

ASX Release 24 January 2011
----- End of picture text -----

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

High-Grade Gold Intercepts at Big Blow Strengthen Tindals Open Pits Programme

Best results of 4m @ 23.4g/t Au, 5m @ 9.6g/t Au and 13m @ 7.5g/t Au

____________

Gold producer Focus Minerals (ASX: FML ) is pleased to advise that drilling to establish a sustainable production base for upcoming open pit mining at its Coolgardie Gold Operations in Western Australia has delivered a series of outstanding high-grade gold intersections from the Big Blow deposit, at the Tindals Mining Centre.

The ongoing forty five hole surface drilling program at Big Blow, which is testing strike extensions to the north and south, and depth extensions 40m below the current planned pit, has delivered excellent intersections from the first thirty holes which is very encouraging given their density and proximity to an existing planned pit. Best results include (also refer Figure 1):

• 4m @ 23.4g/t Au from 76m

• 5m @ 9.6g/t Au from 92m

• 13m @ 7.5g/t Au from 84m, and

• 6m @ 6.4g/t Au from 77m.

Focus Minerals CEO, Campbell Baird, said the results from Big Blow pointed to the potential for future stage expansion of the existing planned open pit.

“The Tindals open pits will form the third leg of our planned production profile in 2011. We presently have an open pit reserve at Tindals of 390,000 @ 2.1g/t for 26,400 ozs, and with results from a further fifteen holes still pending along a 250m strike length we will work towards upgrading our resource model to define further stages for the Big Blow open pit.”

Big Blow is one of several potential open pit projects located in the Tindals Mining Centre, from where the bulk of ore is presently sourced from the underground operations.

The Company plans to commence open pit production at the Tindals Mining Centre in the June Quarter once all approvals have been received. This will supplement the underground ore currently sourced from Tindals as well as the planned new underground mining centre at The Mount, located to the south-east of Focus’ Three Mile Hill treatment facility.

ENDS

Paul Armstrong / Nicholas Read Read Corporate Phone: +61 (0)8 9388 1474

Campbell Baird, CEO Focus Minerals Ltd Phone: +61 (0)8 9215 7888

The information that relates to exploration targets refers to targets that are conceptual in nature, where there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

ASX Release XX[th] January 2011

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

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.

BACKGROUND INFORMATION – FOCUS MINERALS LTD

Focus Minerals Ltd (ASX: FML) is an Australian-based gold producer based in the CoolgardieKalgoorlie-Widgiemooltha region of Western Australia. The company holds the mineral rights to more than 305 km2 of tenements and 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 is currently in production from its flagship Tindals Mining Centre operation in Coolgardie, adjacent to its 1.2mtpa Three Mile Hill processing plant. The Tindals Mining Centre comprises a major underground production operation and the business will commence open cut mining at Tindals in the first half of calendar 2011 from a series of deposits. In addition, Focus will also commence production from another new operation in the first half of 2011 at The Mount underground project located 80km to the south.

Appendix 1 Open Pit Reserves in the Tindals Mining Centre (for full reserve table please refer to the September 2010 Quarterly ASX announcement).

	Tindals Mining Centre Open Pit Reserves
		Tonnes	Grade (g/t)	Ounces
Probable Reserve	Big Blow	63,000	2.2	4,500
	Dreadnought North	54,000	1.8	3,100
	Empress	113,000	2.6	9,500
	Alicia	160,000	1.8	9,300
	Total:	390,000	2.1	26,400

==> picture [595 x 64] intentionally omitted <==

ASX Release XX[th] January 2011

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

Figure 1 – Long Section of the Big Blow Deposit with recent significant intersections shown.

==> picture [461 x 325] intentionally omitted <==

==> picture [595 x 64] intentionally omitted <==

ASX Release XX[th] January 2011

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

Table 1 – Significant results from ongoing Big Blow drilling program

Hole Number	Northing	Easting	RL	Azimuth	Dip	Total Depth	From (m)	To (m)	Interval (m)	Grade (g/t)
TNDC0325	6572017	325580	422	270	-60	131	36.00	51.00	15.00	2.41
							76.00	80.00	4.00	23.36
TNDC0326	6572012	325589	422	270	-60	137	69.00	77.00	8.00	3.30
TNDC0328	6571993	325588	422	270	-60	140	77.00	83.00	6.00	6.42
TNDC0329	6571915	325570	426	270	-60	137	84.00	97.00	13.00	7.49
TNDC0331	6571899	325572	426	270	-60	143	93.00	100.00	7.00	5.51
TNDC0341	6571865	325566	428	270	-60	161	65.00	66.00	1.00	50.10
							105.00	111.00	6.00	2.23
TNDC0342	6571857	325553	429	270	-60	135	92.00	97.00	5.00	9.58
TNDC0343	6571838	325549	429	270	-60	137	95.00	101.00	6.00	5.25
TNDC0344	6571819	325546	428	270	-60	143	31.00	35.00	4.00	1.12
							94.00	103.00	9.00	3.96
BGC049	6571890	325535	432	270	-57	48	38.00	40.00	2.00	6.70
							45.00	48.00	3.00	6.03
BGC052	6571880	325529	433	270	-46	42	27.00	29.00	2.00	2.36
BGC056	6571860	325520	432	270	-60	48	20.00	35.00	15.00	2.58
							40.00	45.00	5.00	5.54
BGC058	6571850	325513	432	270	-60	48	9.00	13.00	4.00	2.77
							21.00	24.00	3.00	2.04
BGC060	6571840	325510	432	270	-60	48	0.00	4.00	4.00	2.08
BGC065	6571830	325480	434	270	-60	48	34.00	36.00	2.00	3.50
BGC068	6571820	325510	432	270	-60	48	4.00	6.00	2.00	4.09
BGC080	6571790	325520	429	270	-60	48	14.00	17.00	3.00	8.21
BGC091	6571770	325490	431	270	-60	48	1.00	3.00	2.00	4.63
BGC097	6571750	325500	427	270	-60	48	13.00	16.00	3.00	2.90
BGC102	6571720	325510	424	270	-60	48	0.00	10.00	10.00	1.44
							12.00	15.00	3.00	3.78
BGC123	6571840	325473	433	270	-60	48	30.00	32.00	2.00	2.25
BGC056A	6571860	325520	432	270	-60	48	16.00	19.00	3.00	2.05
BGC059A	6571840	325520	431	270	-60	48	0.00	2.00	2.00	4.72

==> picture [595 x 64] intentionally omitted <==