FOCUS MINERALS LTD — Capital/Financing Update 2012

Feb 15, 2012

16 February 2012

==> picture [142 x 100] intentionally omitted <==

==> picture [139 x 85] intentionally omitted <==

ASX ANNOUNCEMENT

FURTHER RECONNAISSANCE DRILLING AT TREASURE ISLAND IDENTIFIES LARGE EXTENSION TO NEW GOLD SYSTEM

• Second gold bearing structure on project now estimated to be 4km long

• Infill drilling program completed; results pending

Focus Minerals Ltd. (ASX:FML) a leading Australian gold producer and explorer, said today that reconnaissance drilling at its Treasure Island Gold Project at Lake Cowan has confirmed that the recently discovered gold bearing system running through the project (see ASX Release dated 24 November 2011) appears to be significantly longer in potential strike length than initial estimates.

The Treasure Island Gold Project on Lake Cowan is located 35km south-south east along strike from the major gold camp of Kambalda St Ives in Western Australia, where over 15 million ounces of gold have been discovered over the last 22 years.

Following the receipt of final assays from a reconnaissance aircore drilling program conducted during the December Quarter, the newly discovered gold bearing system is now believed to extend for over a 4km strike length through the project, up from an initial 1.2km (Figure 1).

Treasure Island principal geologist Dean Goodwin, who discovered the gold mines of Redoubtable, Santa Anna and Intrepid on Lake Lefroy to the north of Treasure Island in the late 90s, said the latest results also showed the emergence of exciting structural complexities of the gold system.

“This drilling program has enabled us to identify the supergene zone hot spots that point to the potential primary ore zones beneath the lake sediment,” said Mr Goodwin. “What we are starting to see as we map these is not only a significant increase in the length of the gold system, but also evidence of a lot of structural complexity which is similar to what you see at St Ives. Complexity is the key to finding substantial gold deposits.”

Mr Goodwin said that since preliminary aircore results were announced to the ASX on 24 November 2011, a further 12 holes had returned composite samples of greater than 50ppb (parts per billion). “ This shows a strong signature as to the existence of the gold bearing structures beneath the lake. We’re excited by the potential .”

Infill aircore drilling started in January 2012 on a 80m x 40m spacing and is expected to produce multiple targets, which will then be tested by diamond drilling. Results from this infill program are expected in approximately one month’s time.

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 operates 3 mines: The Tindals Underground; Tindals Open Pits; and The Mount underground. Gold is processed at Focus’ 1.2Mtpa processing plant, Three Mile Hill, which is adjacent to the town of Coolgardie. Focus also operates, through its 81.57% majority shareholding in Crescent Gold, the Laverton Gold Project, located 250km northeast of Kalgoorlie in Western Australia. Laverton comprises a significant portfolio of large scale open pit mines, with ore being processed under an OPA at the nearby Barrick Granny Smith mill.

ENDS

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

==> picture [596 x 47] intentionally omitted <==

==> picture [77 x 54] intentionally omitted <==

==> picture [137 x 31] intentionally omitted <==

Figure 1: Significant intersections as part of the aircore drilling 3km east of Treasure Island showing the interpreted mineralised trend.

==> picture [469 x 664] intentionally omitted <==

Page 2 of 5

==> picture [77 x 54] intentionally omitted <==

==> picture [137 x 31] intentionally omitted <==

Figure 2: Cross Section showing how aircore drilling is identifying the supergene zone which indicates the potential for a primary ore zone

==> picture [460 x 376] intentionally omitted <==

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 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”. 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 TABLES BELOW:

All aircore holes are sampled as 4m composites. Intervals at the end of each hole are varied so that the last interval is a minimum of 2m. Assay method is 10 gram aqua regia assay to ppb. All mineralised intersections are quoted as down-hole lengths with uncut gold values. All gold grades are reported with a nominal cut-off grade of 20ppb Au. NSR = “no significant result” (above 20ppb). EOH = “end of hole”.

Table 1: Assay Results from Aircore Drilling 3km to the East of Treasure Island.

Hole Number	Northing	Easting	Azimuth	Dip	Total Depth (m)	From (m)	To (m)	Down Hole width(m)	Grade ppb (Au)
LCAC176	6497360	407000	360	-90	30	NSR
LCAC177	6497360	407080	360	-90	11	NSR
LCAC178	6497360	407160	360	-90	24	NSR
LCAC179	6497360	407240	360	-90	37	NSR
LCAC180	6497360	407320	360	-90	53	NSR
LCAC181	6497360	407400	360	-90	61	48	52	4	31
LCAC182	6497360	407480	360	-90	54	36	40	4	26
LCAC183	6497360	407560	360	-90	40	NSR
LCAC184	6497360	407640	360	-90	25	NSR

Page 3 of 5

						From (m) To (m) Down Hole width(m) Grade ppb (Au) NSR NSR NSR NSR NSR NSR NSR NSR NSR 24 28 4 25 NSR NSR NSR 52 56 4 43 NSR NSR 52 64 12 125 NSR NSR 36 44 8 33 NSR 32 36 4 48 NSR NSR NSR 56 60 4 29 NSR NSR NSR 36 44 8 155 NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR 28 32 4 153 32 48 16 50 NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR	From (m) To (m) Down Hole width(m) Grade ppb (Au) NSR NSR NSR NSR NSR NSR NSR NSR NSR 24 28 4 25 NSR NSR NSR 52 56 4 43 NSR NSR 52 64 12 125 NSR NSR 36 44 8 33 NSR 32 36 4 48 NSR NSR NSR 56 60 4 29 NSR NSR NSR 36 44 8 155 NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR 28 32 4 153 32 48 16 50 NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR	From (m) To (m) Down Hole width(m) Grade ppb (Au) NSR NSR NSR NSR NSR NSR NSR NSR NSR 24 28 4 25 NSR NSR NSR 52 56 4 43 NSR NSR 52 64 12 125 NSR NSR 36 44 8 33 NSR 32 36 4 48 NSR NSR NSR 56 60 4 29 NSR NSR NSR 36 44 8 155 NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR 28 32 4 153 32 48 16 50 NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR	From (m) To (m) Down Hole width(m) Grade ppb (Au) NSR NSR NSR NSR NSR NSR NSR NSR NSR 24 28 4 25 NSR NSR NSR 52 56 4 43 NSR NSR 52 64 12 125 NSR NSR 36 44 8 33 NSR 32 36 4 48 NSR NSR NSR 56 60 4 29 NSR NSR NSR 36 44 8 155 NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR 28 32 4 153 32 48 16 50 NSR NSR NSR NSR NSR NSR NSR NSR NSR NSR
Hole Number	Northing	Easting	Azimuth	Dip	Total Depth (m)	From (m)	To (m)	Down Hole width(m)	Grade ppb (Au)
LCAC185	6497360	407720	360	-90	13	NSR
LCAC186	6497360	407800	360	-90	13	NSR
LCAC187	6497360	407880	360	-90	4	NSR
LCAC188	6497360	407960	360	-90	4	NSR
LCAC189	6497360	408040	360	-90	6	NSR
LCAC190	6497360	408120	360	-90	4	NSR
LCAC191	6497360	408200	360	-90	8	NSR
LCAC192	6497360	408280	360	-90	6	NSR
LCAC193	6497360	408360	360	-90	16	NSR
LCAC194	6497360	408440	360	-90	33	24	28	4	25
LCAC284	6495440	407000	360	-90	55	NSR
LCAC285	6495440	407080	360	-90	60	NSR
LCAC286	6495440	407160	360	-90	58	NSR
LCAC287	6495440	407240	360	-90	60	52	56	4	43
LCAC288	6495440	407320	360	-90	57	NSR
LCAC289	6495440	407400	360	-90	79	NSR
LCAC290	6495440	407480	360	-90	82	52	64	12	125
LCAC291	6495440	407560	360	-90	75	NSR
LCAC292	6495440	407640	360	-90	62	NSR
LCAC293	6495440	407720	360	-90	58	36	44	8	33
LCAC294	6495440	407800	360	-90	51	NSR
LCAC295	6495440	407880	360	-90	36	32	36	4	48
LCAC296	6495440	407960	360	-90	36	NSR
LCAC297	6495440	408040	360	-90	53	NSR
LCAC298	6495440	408120	360	-90	63	NSR
LCAC299	6495440	408200	360	-90	72	56	60	4	29
LCAC300	6495440	408280	360	-90	63	NSR
LCAC301	6495440	408360	360	-90	58	NSR
LCAC429	6493840	408040	360	-90	12	NSR
LCAC430	6493840	407960	360	-90	49	36	44	8	155
LCAC431	6493840	407880	360	-90	60	NSR
LCAC432	6493840	407800	360	-90	48	NSR
LCAC433	6493840	407720	360	-90	40	NSR
LCAC434	6493840	407640	360	-90	30	NSR
LCAC435	6493840	407560	360	-90	25	NSR
LCAC436	6493840	407480	360	-90	26	NSR
LCAC437	6493840	407400	360	-90	37	NSR
LCAC438	6493840	407320	360	-90	40	NSR
LCAC439	6493840	407240	360	-90	39	NSR
LCAC440	6494160	407240	360	-90	22	NSR
LCAC441	6494160	407320	360	-90	29	NSR
LCAC442	6494160	407400	360	-90	35	NSR
LCAC443	6494160	407480	360	-90	41	NSR
LCAC444	6494160	407560	360	-90	38	NSR
LCAC445	6494160	407640	360	-90	28	NSR
LCAC446	6494160	407720	360	-90	22	NSR
LCAC447	6494160	407800	360	-90	26	NSR
LCAC448	6494160	407880	360	-90	48	28	32	4	153
LCAC449	6494160	407960	360	-90	56	32	48	16	50
LCAC450	6494160	408040	360	-90	34	NSR
LCAC451	6494160	408120	360	-90	31	NSR
LCAC452	6494160	408200	360	-90	40	NSR
LCAC453	6494160	408280	360	-90	53	NSR
LCAC454	6494160	408360	360	-90	54	NSR
LCAC455	6494160	408440	360	-90	14	NSR
LCAC456	6494160	408520	360	-90	42	NSR
LCAC457	6494160	408600	360	-90	19	NSR
LCAC458	6494160	408680	360	-90	14	NSR
LCAC459	6494160	408760	360	-90	14	NSR

Page 4 of 5

						From (m) To (m) Down Hole width(m) Grade ppb (Au) NSR NSR NSR NSR NSR 24 28 4 42 19 21 2 95 12 28 16 34 NSR 36 44 8 63 NSR NSR NSR NSR NSR NSR 12 16 4 24 NSR NSR NSR NSR NSR NSR NSR 32 36 4 41 NSR 24 28 4 30 24 28 4 30 NSR NSR NSR 20 22 2 21 NSR NSR 8 10 2 43 NSR NSR NSR NSR 56 60 4 35 52 67 15 211 NSR NSR 36 40 4 80 NSR 40 52 12 63 NSR NSR NSR NSR NSR	From (m) To (m) Down Hole width(m) Grade ppb (Au) NSR NSR NSR NSR NSR 24 28 4 42 19 21 2 95 12 28 16 34 NSR 36 44 8 63 NSR NSR NSR NSR NSR NSR 12 16 4 24 NSR NSR NSR NSR NSR NSR NSR 32 36 4 41 NSR 24 28 4 30 24 28 4 30 NSR NSR NSR 20 22 2 21 NSR NSR 8 10 2 43 NSR NSR NSR NSR 56 60 4 35 52 67 15 211 NSR NSR 36 40 4 80 NSR 40 52 12 63 NSR NSR NSR NSR NSR	From (m) To (m) Down Hole width(m) Grade ppb (Au) NSR NSR NSR NSR NSR 24 28 4 42 19 21 2 95 12 28 16 34 NSR 36 44 8 63 NSR NSR NSR NSR NSR NSR 12 16 4 24 NSR NSR NSR NSR NSR NSR NSR 32 36 4 41 NSR 24 28 4 30 24 28 4 30 NSR NSR NSR 20 22 2 21 NSR NSR 8 10 2 43 NSR NSR NSR NSR 56 60 4 35 52 67 15 211 NSR NSR 36 40 4 80 NSR 40 52 12 63 NSR NSR NSR NSR NSR	From (m) To (m) Down Hole width(m) Grade ppb (Au) NSR NSR NSR NSR NSR 24 28 4 42 19 21 2 95 12 28 16 34 NSR 36 44 8 63 NSR NSR NSR NSR NSR NSR 12 16 4 24 NSR NSR NSR NSR NSR NSR NSR 32 36 4 41 NSR 24 28 4 30 24 28 4 30 NSR NSR NSR 20 22 2 21 NSR NSR 8 10 2 43 NSR NSR NSR NSR 56 60 4 35 52 67 15 211 NSR NSR 36 40 4 80 NSR 40 52 12 63 NSR NSR NSR NSR NSR
Hole Number	Northing	Easting	Azimuth	Dip	Total Depth (m)	From (m)	To (m)	Down Hole width(m)	Grade ppb (Au)
LCAC460	6494480	407240	360	-90	30	NSR
LCAC461	6494480	407320	360	-90	33	NSR
LCAC462	6494480	407400	360	-90	46	NSR
LCAC463	6494480	407480	360	-90	58	NSR
LCAC464	6494480	407560	360	-90	47	NSR
LCAC465	6494480	407640	360	-90	31	24	28	4	42
LCAC466	6494480	407720	360	-90	21	19	21	2	95
LCAC467	6494480	407800	360	-90	39	12	28	16	34
LCAC468	6494480	407880	360	-90	37	NSR
LCAC469	6494480	407960	360	-90	57	36	44	8	63
LCAC470	6494480	408040	360	-90	57	NSR
LCAC471	6494480	408120	360	-90	30	NSR
LCAC472	6494480	408200	360	-90	45	NSR
LCAC473	6494480	408280	360	-90	40	NSR
LCAC474	6494480	408360	360	-90	32	NSR
LCAC475	6494480	408440	360	-90	27	NSR
LCAC476	6494480	408520	360	-90	38	12	16	4	24
LCAC477	6494480	408600	360	-90	15	NSR
LCAC478	6494480	408680	360	-90	54	NSR
LCAC479	6494800	407240	360	-90	7	NSR
LCAC480	6494800	407320	360	-90	40	NSR
LCAC481	6494800	407400	360	-90	47	NSR
LCAC482	6494800	407480	360	-90	55	NSR
LCAC483	6494800	407560	360	-90	46	NSR
LCAC484	6494800	407640	360	-90	69	32	36	4	41
LCAC485	6494800	407720	360	-90	53	NSR
LCAC486	6494800	407800	360	-90	58	24	28	4	30
LCAC487	6494800	407880	360	-90	50	24	28	4	30
LCAC488	6494800	407960	360	-90	55	NSR
LCAC489	6494800	408040	360	-90	45	NSR
LCAC490	6494800	408120	360	-90	35	NSR
LCAC491	6494800	408200	360	-90	22	20	22	2	21
LCAC492	6494800	408280	360	-90	4	NSR
LCAC493	6494800	408360	360	-90	5	NSR
LCAC494	6494800	408440	360	-90	10	8	10	2	43
LCAC495	6494800	408520	360	-90	10	NSR
LCAC496	6495120	408080	360	-90	36	NSR
LCAC497	6495120	408200	360	-90	55	NSR
LCAC498	6495120	408120	360	-90	66	NSR
LCAC499	6495120	408040	360	-90	68	56	60	4	35
LCAC500	6495120	407960	360	-90	69	52	67	15	211
LCAC501	6495120	407880	360	-90	49	NSR
LCAC502	6495120	407800	360	-90	62	NSR
LCAC503	6495120	407720	360	-90	52	36	40	4	80
LCAC504	6495120	407640	360	-90	71	NSR
LCAC505	6495120	407560	360	-90	72	40	52	12	63
LCAC506	6495120	407480	360	-90	70	NSR
LCAC507	6495120	407400	360	-90	71	NSR
LCAC508	6495120	407320	360	-90	51	NSR
LCAC509	6495120	407240	360	-90	59	NSR
LCAC510	6495120	407160	360	-90	50	NSR

Page 5 of 5