FOCUS MINERALS LTD — Capital/Financing Update 2012

Jul 30, 2012

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ASX ANNOUNCEMENT

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31 July 2012

STRONG DRILL RESULTS HIGHLIGHT DEPTH AND PIT EXTENSION POTENTIAL AT BURTVILLE, LAVERTON

Highlights

• High-grade results from western pit area confirm mineralisation open below and outside existing pit

• Results include:

• 12m @ 9.9g/t Au from 23m

• o 5m @ 21.5g/t Au from 85m o 4m @ 57.4g/t from 90m o 2m @ 84.2g/t Au from 72m

• Preliminary modelling indicates potential for a low strip ratio pit expansion

• Wider review points to likelihood of a very large mineralised system outside existing mined area

Focus Minerals Ltd. (ASX: FML), a leading Australian gold producer and explorer, said high-grade results from a major drilling programme at the Burtville mining centre in Laverton (Figure 1) have confirmed depth extensions to the existing pit floor and expansion beyond the current pit shape.

Burtville was a large, low strip open pit operation that was mined in the 1990s by Sons of Gwalia producing 64,000oz @ 1.4g/t. Numerous historic shafts in the area indicate a substantial gold system across a 2km x 1km footprint (Figure 2).

The Mineral Resource definition drilling programme of 142 RC holes focused on a detailed drill-out of the western section of the existing Burtville pit (Figure 3) to a vertical depth of 110m. The goal of the drilling was to test up to 70m below the base of the current pit to assess the potential for Burtville’s inclusion in Focus’ near-term production schedule. This has delivered the following results (Table 1):

• 6m @ 17.3g/t from 33m; • 5m @ 21.5g/t from 85m;

• • 5m @ 19.3g/t from 90m; • 1m @ 169.5g/t from 55m; • 4m @ 57.4g/t from 90m • 2m @ 84.2g/t from 72m; • 1m @ 139.4g/t from 22m; • 8m @ 9.5g/t from 12m; and • 5m @ 16.0g/t from 22m • 12m @ 9.9g/t from 23m

Focus Minerals CEO Campbell Baird said mineralisation at Burtville remained open in all directions and outside of the immediate existing pit area.

“it appears that the first stage of drilling has just touched on the potential of this system,” said Mr Baird. “Burtville is a high-priority target for us as there are multiple factors pointing to the existence of a very big system.

“So far we’ve just focused on the western third of the existing Burtville pit where our modelling is indicating there’s the potential for a very low strip ratio pit expansion.

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“This, in combination with what we believe to be a very large mineralised system points to the opportunity to develop a long-term, low unit cost mining centre at Burtville,” Mr Baird said.

Since acquiring the Laverton operations last year, Burtville has been one of a series of priority development targets for Focus. The Burtville deposit is hosted in granodiorite. To the northeast the granodiorite is in contact with a sequence of bedded siltstone and felsic tuff. Narrow (1-3m) fine grained mafic and felsic dykes cut the granodiorite and adjacent rocks.

Numerous gold bearing quartz veins (1mm – 30cm thick) cut through the rock types at Burtville, with the best vein development occurring within the granodiorite. The larger veins contain disseminated pyrite. The largest concentration of veins appears to be in the western half of the pit, where this drilling programme was targeted. Gold mineralisation appears to be confined mainly to the quartz veins.

Mineralisation at Burtville is open in all directions. Very little drilling had been historically undertaken, outside of the immediate pit vicinity. There is a 2km x 1km area around Burtville (Figure 2) containing numerous prospector workings, where they have mined some of the quartz veins within the weathered granodiorite.

About Focus Minerals: Focus Minerals is a leading Australian gold producer operating two significant production centres in Western Australia’s Eastern Goldfields. The company is the largest landholder in the Coolgardie Gold Belt, 35km west of ‘Super Pit’ in Kalgoorlie, where it runs The Tindals Mining Centre underground and open pit operations, and The Mount underground, 85km to the south. Gold is processed at Focus’ 1.2Mtpa processing plant, Three Mile Hill, which is adjacent to the town of Coolgardie. 250km to the northeast Focus also operates, the Laverton Gold Project which comprises a significant portfolio of large scale open pit mines, with ore being processed under an OPA at the nearby Barrick Granny Smith plant.

Campbell Baird Chief Executive Officer Focus Minerals Ltd Ph: +61 8 9215 7888

Neil Le Febvre Michael Mullane Investor Relations Media Relations Focus Minerals Ltd Cannings Corporate Ph: +61 8 9215 7888 Ph: +61 2 8284 9990

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Figure 1: Burtville location plan.

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Figure 2: Plan view of the Burtville area, highlighting the focus of the current drilling (in red box). Numerous historical shafts and spoil heaps are evident. Interpreted structural trends are indicated (in yellow), along with the outline of the interpreted area of the granodiorite (white dashed lines).

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Figure 3: Drill hole collar locations for Burtville.

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Page 4 of 8

COMPETENT PERSON’S STATEMENT : The information in this report that relates to Exploration Results and Minerals Resources across the Coolgardie region is based on information compiled by Mr Dean Goodwin who is a member of the Australian Institute of Geoscientists. Mr Goodwin is employed by 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”. Mr Goodwin consents to the inclusion in the report of the matters based on the information in the form and content in which it appears.

Note for Drill Results Table below : All drill holes are sampled to 1m intervals. Assay method is 50 gram fire assay. All mineralised intersections are quoted as down-hole lengths with uncut gold values. All The intersections are approximately 70% of true thickness. All gold grades are reported with a nominal lower cut-off grade of 2g/t Au.

Table 1: Assay Results from Drilling at Burtville. All values above 2g/t are reported, while all results between 1-2g/t with intervals greater than 1m are also reported. For a full list of drill results please refer to the Focus website www.focusminerals.com.au

Hole Number	Northing	Easting	RL	Azimuth	Dip	Total Depth (m)	From (m)	To (m)	Down Hole Interval (m)	Grade g/t (Au)
BVRC070	6817579	464921	478	91	-66	125	42	43	1	3.42
							59	60	1	4.58
BVRC084	6817580	465021	477	89	-65	125	2	3	1	2.39
BVRC085	6817580	465001	477	94	-65	125	46	47	1	2.37
							82	83	1	16.80
BVRC088	6817600	465041	478	90	-64	125	93	94	1	6.45
BVRC090	6817600	465001	478	88	-62	125	1	2	1	17.19
							80	81	1	2.75
BVRC094	6817639	464737	482	91	-62	125	39	40	1	2.23
BVRC097	6817699	464737	484	92	-66	125	113	114	1	2.31
BVRC099	6817760	464777	485	93	-63	125	79	80	1	2.21
							113	114	1	2.83
							120	121	1	2.28
BVRC100	6817800	464820	484	97	-64	125	34	35	1	2.09
							51	55	4	4.14
BVRC101	6817841	464931	480	94	-59	90	26	28	2	3.79
							51	52	1	9.71
							59	60	1	4.57
BVRC102	6817841	464911	481	96	-62	110	90	91	1	4.13
							100	104	4	1.49
BVRC103	6817841	464891	481	94	-60	120	53	55	2	1.71
							99	101	2	1.52
BVRC104	6817860	464951	480	92	-59	61	50	51	1	2.02
BVRC106	6817860	464911	481	97	-65	115	112	113	1	2.45
BVRC107	6817860	464892	482	95	-60	115	33	39	6	17.30
							72	73	1	2.18
BVRC109	6817880	464931	481	94	-61	100	56	57	1	15.69
BVRC110	6817899	464921	481	94	-64	105	33	36	3	1.44
BVRC111	6817920	464921	482	96	-63	100	80	81	1	5.01
							94	96	2	4.84
BVRC115	6817740	464980	443	91	-58	80	16	17	1	3.05
							21	22	1	4.85
BVRC116	6817740	464998	442	92	-59	80	44	45	1	6.05
							59	60	1	6.33
							72	76	4	8.25
BVRC117	6817720	464981	443	91	-59	80	7	10	3	1.74
BVRC118	6817700	464971	443	93	-60	80	37	39	2	1.61
							61	62	1	2.84
BVRC119	6817699	464954	443	91	-61	80	44	45	1	5.88
BVRC120	6817699	464991	443	92	-60	80	30	40	10	4.01
BVRC122	6817720	465001	443	93	-62	80	0	3	3	1.31
							6	9	3	1.64
							13	17	4	1.02
BVRC123	6817721	464953	443	272	-62	55	41	44	3	15.63
							48	49	1	3.38
BVRC126	6817740	464952	442	271	-62	60	21	25	4	2.54
BVRC127	6817740	464956	443	68	-87	70	14	15	1	3.68

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							54	56	2	1.59
BVRC128	6817740	464961	443	92	-62	80	6	7	1	2.77
							64	65	1	2.02
BVRC129	6817880	464911	481	94	-66	110	91	92	1	2.65
BVRC130	6817760	464971	442	94	-63	80	14	15	1	6.05
BVRC131	6817900	464940	481	94	-65	80	23	26	3	1.72
							48	52	4	14.20
BVRC132	6817740	464949	443	271	-55	90	13	14	1	2.35
							22	27	5	19.31
							69	71	2	1.54
							77	80	3	1.98
BVRC133	6817920	464940	482	94	-62	80	20	21	1	2.04
							62	66	4	2.67
BVRC134	6817760	464951	442	93	-60	80	52	53	1	3.48
BVRC136	6817940	464919	481	94	-62	95	57	59	2	10.07
							90	94	4	57.39
BVRC137	9817960	464940	482	89	-63	65	40	42	2	2.63
BVRC138	6817960	464920	481	93	-63	90	58	60	2	3.64
BVRC139	6817980	494940	482	89	-62	60	41	42	1	2.45
BVRC142	6817764	464935	442	93	-61	80	2	6	4	2.46
							11	14	3	1.05
							18	21	3	31.61
							42	44	2	11.12
BVRC144	6818020	464940	481	90	-61	50	39	40	1	2.52
BVRC145	6817761	464950	443	47	-53	90	12	16	4	1.28
							30	32	2	2.05
							54	55	1	2.37
							69	70	1	3.38
							77	78	1	2.97
BVRC146	6818020	464920	482	91	-63	75	52	53	1	2.03
BVRC148	6817764	464934	442	46	-49	90	8	9	1	2.19
							14	18	4	1.55
							29	30	1	2.02
							60	62	2	1.88
							66	68	2	1.48
							75	77	2	1.78
BVRC152	6817790	464996	445	112	-65	75	0	7	7	1.19
							11	18	7	1.90
							22	23	1	139.40
							27	29	2	1.59
							39	41	2	1.61
							45	47	2	3.38
BVRC153	6817940	464901	482	91	-62	95	84	86	2	2.59
BVRC155	6817900	464901	481	94	-61	105	2	3	1	2.94
							37	38	1	2.11
BVRC156	6817741	464876	443	95	-59	80	4	7	3	1.78
							12	14	2	13.21
							17	23	6	3.51
							29	33	4	1.40
							76	80	4	1.36
BVRC157	6817880	464890	481	96	-60	110	34	35	1	2.92
BVRC158	6817741	464874	443	92	-43	90	8	9	1	2.19
							33	34	1	2.08
							38	44	6	1.44
							52	54	2	2.24
BVRC159	6817600	464779	480	98	-60	150	40	41	1	2.11
BVRC160	6817759	464913	441	95	-56	80	0	2	2	1.38
							16	17	1	2.70
							22	27	5	16.00
							30	31	1	3.12
							42	43	1	4.02
BVRC161	6817615	464763	480	98	-56	150	33	34	1	3.74
BVRC162	6817761	464914	441	48	-47	90	22	30	8	4.77
							89	90	1	2.43
BVRC164	6817660	464749	482	94	-60	150	53	57	4	1.73

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							63	64	1	3.00
							94	96	2	2.98
BVRC165	6817721	464861	442	94	-60	80	8	12	4	1.23
							16	20	4	2.86
							37	39	2	22.38
							45	49	4	1.62
							55	57	2	2.35
							71	80	9	5.29
BVRC166	6817679	464749	483	97	-56	150	85	90	5	21.54
							101	103	2	2.90
							142	150	8	3.24
BVRC167	6817721	464857	442	96	-86	70	2	4	2	2.28
							23	35	12	9.88
							67	69	2	2.43
BVRC168	6817699	464752	484	108	-51	150	79	86	7	2.34
							126	129	3	2.38
							142	150	8	2.99
BVRC169	6817720	464846	442	274	-64	80	10	11	1	8.65
BVRC170	6817707	464837	442	103	-65	80	3	9	6	5.76
							29	30	1	2.77
							43	45	2	4.72
BVRC171	6817700	464851	441	93	-62	80	59	69	10	1.69
							75	76	1	3.69
BVRC172	6817700	464872	441	91	-61	80	0	4	4	1.95
							33	35	2	6.54
							57	61	4	1.24
BVRC173	6817681	464840	440	92	-62	80	8	12	4	1.58
							35	36	1	14.10
							67	68	1	2.10
							71	73	2	3.23
BVRC174	6817677	464823	440	92	-62	80	36	42	6	2.29
							53	54	1	23.14
BVRC175	6817660	464824	440	91	-62	80	2	10	8	3.42
							47	48	1	40.76
							51	56	5	7.58
BVRC178	6817649	464880	440	135	-46	95	19	21	2	3.16
BVRC179	6817654	464900	440	135	-47	95	20	21	1	2.10
							37	38	1	2.62
BVRC180	6817659	464880	440	89	-60	80	4	6	2	2.55
							16	20	4	3.05
							31	32	1	3.33
							50	51	1	2.04
							70	71	1	3.17
BVRC183	6817659	464901	440	92	-60	80	6	9	3	6.07
BVRC184	6817678	464899	440	92	-56	80	13	14	1	2.12
BVRC185	6817654	464828	440	138	-53	95	0	4	4	1.07
							84	85	1	5.72
BVRC186	6817714	464892	440	94	-59	80	12	20	8	9.53
							23	24	1	2.56
							47	51	4	1.08
							70	71	1	2.90
BVRC187	6817714	464894	441	92	-47	90	55	56	1	169.50
BVRC188	6817700	464931	441	93	-60	80	2	3	1	5.02
							60	62	2	14.41
BVRC189	6817679	464918	440	91	-59	80	31	32	1	8.88
							35	36	1	3.66
BVRC190	6817700	464898	441	93	-70	75	0	13	13	1.24
BVRC191	6817700	464900	441	93	-52	85	2	7	5	1.46
							18	21	3	1.37
							50	53	3	16.42
BVRC192	6817665	464927	441	92	-64	80	0	3	3	1.44
							25	26	1	2.82
							72	74	2	84.25
BVRC193	6817664	464945	442	93	-60	80	2	5	3	1.90
BVRC195	6817679	464972	443	91	-66	80	23	24	1	2.31

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							39	42	3	9.19
							58	60	2	1.23
BVRC196	6817663	464927	441	144	-49	95	1	5	4	1.56
							20	26	6	1.40
							30	36	6	2.64
BVRC197	6817663	464946	442	135	-49	95	3	7	4	13.54
BVRC198	6817679	464941	442	92	-59	80	50	54	4	1.62
BVRC200	6817680	465001	443	92	-59	80	0	1	1	7.30
							7	8	1	3.60
							14	15	1	4.30
BVRC201	6817680	465010	443	90	-52	85	35	36	1	5.90
BVRC202	6817680	464981	442	90	-57	80	75	77	2	3.53
BVRC203	6817720	464952	443	271	-49	50	11	15	4	2.43
							32	34	2	36.74
							39	40	1	3.01
BVRC205	6817759	464792	484	94	-45	150	145	147	2	4.23
BVRC206	6817779	464823	483	96	-55	150	77	80	3	3.68
							146	147	1	2.89
BVRC207	6817799	464833	483	90	-50	150	69	72	3	11.91
							112	114	2	5.51
							130	131	1	13.15
							145	146	1	12.15
BVRC208	6817739	464772	484	97	-47	150	56	57	1	2.00
							70	72	2	2.11
							117	119	2	1.26
							113	115	2	1.42
BVRC209	6817719	464759	484	90	-50	150	128	132	4	1.23

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