FOCUS MINERALS LTD — Interim / Quarterly Report 2007

Jul 30, 2007

==> picture [216 x 154] intentionally omitted <==

PERTH

Level 3 105 St Georges Terrace Perth Western Australia 6000 Phone: 61 8 9215 7888 Fax: 61 8 9215 7889 Email: pwilliams@focusminerals.com.au ACN 005 470 799

MEDIA / ASX RELEASE 31 JULY 2007

Activities Report for the Quarter Ended 30 June 2007

HIGHLIGHTS

CORPORATE

• Successful conclusion of a two-stage $12.9 million capital raising comprising a Share Placement and Share Purchase Plan. The funds will underpin acceleration of Focus Minerals’ transition to production of both gold and nickel.

• Appointment of key personnel, including a General Manager, Exploration Manager and Project Engineer, to the Coolgardie Gold Project.

GOLD – Redemption Joint Venture, Coolgardie

(Focus Minerals Limited – 50%; Committee Bay Resources Limited – 50%)

• Completion of A$8 million farm-in by Committee Bay Resources Limited, to earn a 50% interest in the Redemption Joint Venture.

• Commencement of a Bankable Feasibility Study for near-term development of the high-grade Perseverance deposit, following the completion of an initial JORC-compliant Inferred Resource of 296,000mt @ 9.4g/t Au for 89,600oz.

• Further high-grade results from Phase 3 drilling program conducted on Perseverance, including:

• 13.0m @ 7.13g/t Au from 207 metres;

• 3.0m @ 15.39g/t Au from 213 metres;

• 24.7m @ 11.76g/t Au from 174.3 metres;

• 1.7m @ 46.15g/t Au from 174.3 metres; and

• 7.3m @ 25.66g/t Au from 180.3 metres

• Commencement of priority exploration drilling of the Bayleys and CNX targets, to test near-surface targets.

NICKEL – Nepean Nickel Project, Coolgardie

(Focus Minerals Limited – 100%)

• Commencement of feasibility work targeting initial nickel concentrate production in 2008.

• Re-estimation of the Nepean Inferred Resource, resulting in a 45% increase to 591,000t @ 2.2% Ni.

• Commencement of discussions with the owner/operator of the Burbanks mineral processing plant, regarding upgrading the facility to accommodate nickel concentrate production.

2

Corporate

Capital Raising

During the quarter Focus Minerals completed a $12.9 million capital raising in support of plans to accelerate its transition to production of both gold and nickel. The two-stage raising comprised the placement of 250 million shares at 4.3c per share to sophisticated Australian and international investors, raising $10.75 million and a heavily oversubscribed $2.15 million Share Purchase Plan of 50 million shares at 4.3c per share to existing shareholders. Lead Manager to the capital raising was Perth-based Capital Investment Partners.

The proposed allocation of the successful capital raising is as follows:

Redemption Joint Venture exploration and development	$4.30M
Nepean Nickel Project exploration and development	$2.80M
Three Mile Hill plant feasibility and maintenance	$0.90M
Working Capital	$1.97M
Administration Costs	$2.34M
Capital Raising Fees	$0.59M

Subsequent to the issue of the new securities, Focus Minerals has 779 million shares on issue.

Personnel Appointments

In anticipation of near-term gold production from the Coolgardie Gold Project, 50%-owned by Focus and its Redemption Joint Venture (RJV) partner Committee Bay Resources Ltd, the RJV appointed three key experienced operational and exploration personnel to the project.

Mining engineer Mr Darren Gibcus has been appointed General Manager, Dr Gary Adams as Exploration Manager and Mr Brett Ustick as Underground Manager.

Gold – Redemption Joint Venture

Perseverance Deposit

During the quarter the RJV commenced a Bankable Feasibility Study for the priority development of the highgrade Perseverance deposit (Inferred Resource of 296,000t @ 9.4 g/t Au, for 89,600 ounces of gold) which is centrally located within the Coolgardie Gold Project and in close proximity to the Three Mile Hill and Greenfields processing plants.

As part of the Perseverance Feasibility Study, 10 RC holes (1,779m) and eight diamond holes (1,349.6m) were completed. The current phase of drilling at Perseverance is nearing completion, with results pending for five additional infill core holes and three additional shallow RC exploratory holes.

On receipt of the complete drill results, the RJV will update the resource model for Perseverance. The RJV anticipates completing the updated resource during the coming quarter and prior to the completion of the Bankable Feasibility Study.

Currently, the Perseverance deposit remains open in all directions. Accordingly, additional downhole EM surveys are being conducted on several of the deeper holes at the periphery of the main quartz-sulphide lode, to identify potential additional high sulphide lodes beneath and adjacent to existing mineralisation.

The RJV is also planning additional ground EM surveys along the highly prospective Redemption Corridor which lies north and south of Perseverance, to follow-up on new anomalies identified from the recently completed VTEM survey.

During the quarter, downhole EM was also conducted at Flagstaff on 07FLD001, located within the Redemption corridor 200m south east of Perseverance. The survey work highlighted a more conductive body to the north east of 07FLD001. This body, which was not intersected in the current hole, represents a priority target for further drill testing.

3

Final tender negotiations are underway for the construction of a decline from the existing fully permitted Empress underground infrastructure to facilitate access to the Perseverance lode, enabling further exploration and resource upgrade drilling programs and potential development.

Decline development work is scheduled to commence in August 2007, to enable the potential commencement of mining from as early as December 2007.

Several drilling programs are continuing at Perseverance, to in-fill the current Inferred Resource, identify potential on-strike extensions and test two conductors which were identified by ground based EM surveys during the delineation of the Perseverance Zone.

Subsequent to the end of the June 2007 quarter the RJV received further outstanding drill results for the Perseverance deposit (detailed in Tables 3 & 4 below), including the following high-grade results:

• 29m @ 20.02 g/t Au from 138 metres;

• o 21m @ 7.3 g/t Au from 141 metres;

• 5m @ 9.86 g/t Au from 1 metre;

• o 6m @ 9.27 g/t Au from 69 metres; o 6m @ 5.95 g/t Au from 84 metres; and o 6m @ 5.53 g/t Au from 124 metres.

Table 1

Phase 3 Drilling Highlights – June 2007 Quarter – Perseverance Quartz-Sulphide Lodes

Hole ID	Comments	From (m)	To (m)	Length (m)	Au g/t
07PEC010		207.0	220.0	13.0	7.13
	including	213.0	216.0	3.0	15.39
07PED011		232.0	135.0	3.0	6.00
07PED013		172.0	173.0	1.0	18.43
07PED014		174.3	199.0	24.7	11.76
	including	174.3	176.0	**1.7 **	46.15
	and	180.3	187.6	7.3	25.66
07PED015		301.3	306.7	5.4	5.05

Table 2 Phase 3 Drilling Highlights–June 2007 Quarter–Perseverance Diorite Hosted Stockwork Mineralisation	Table 2 Phase 3 Drilling Highlights–June 2007 Quarter–Perseverance Diorite Hosted Stockwork Mineralisation	Table 2 Phase 3 Drilling Highlights–June 2007 Quarter–Perseverance Diorite Hosted Stockwork Mineralisation	Table 2 Phase 3 Drilling Highlights–June 2007 Quarter–Perseverance Diorite Hosted Stockwork Mineralisation	Table 2 Phase 3 Drilling Highlights–June 2007 Quarter–Perseverance Diorite Hosted Stockwork Mineralisation	Table 2 Phase 3 Drilling Highlights–June 2007 Quarter–Perseverance Diorite Hosted Stockwork Mineralisation
Hole ID		From (m)	To (m)	Length (m)	Au g/t
07PEC012		191.0	197.0	6.0	1.49
07PED014		208.0	211.0	3.0	3.42

Table 2 Phase 3 Drilling Highlights–June 2007 Quarter–Perseverance Diorite Hosted Stockwork Mineralisation	Table 2 Phase 3 Drilling Highlights–June 2007 Quarter–Perseverance Diorite Hosted Stockwork Mineralisation	Table 2 Phase 3 Drilling Highlights–June 2007 Quarter–Perseverance Diorite Hosted Stockwork Mineralisation	Table 2 Phase 3 Drilling Highlights–June 2007 Quarter–Perseverance Diorite Hosted Stockwork Mineralisation	Table 2 Phase 3 Drilling Highlights–June 2007 Quarter–Perseverance Diorite Hosted Stockwork Mineralisation	Table 2 Phase 3 Drilling Highlights–June 2007 Quarter–Perseverance Diorite Hosted Stockwork Mineralisation
Hole ID		From (m)	To (m)	Length (m)	Au g/t
07PEC012		191.0	197.0	6.0	1.49
07PED014		208.0	211.0	3.0	3.42

Table3

• – - Phase 3 Drilling Highlights September 2007 Quarter Perseverance Quartz Sulphide Lodes

Hole ID	Comments	From (m)	To (m)	Length (m)	Au g/t
07PEC014		109.0	114.0	5.0	1.54
07PEC015		69.0	75.0	6.0	9.27
	including	71.0	73.0	2.0	22.78
07PEC016		8.0	14.0	6.0	2.44
07PEC020		1.0	6.0	5.0	9.86
07PEC021		45.0	47.0	2.0	1.66
07PEC022		124.0	130.0	6.0	5.53
07PEC023		141.0	162.0	21.0	7.30
	including	141.0	153.0	12.0	11.79
07PEC024		133.0	136.0	3.0	6.83
07PEC025		84.0	90.0	6.0	5.95
	including	84.0	87.0	3.0	9.04
07PED018		138.0	167.0	29.0	20.02
	including	140.9	147.0	**6.1 **	28.21
	and	159.0	166.7	7.7	44.86
		173.8	175.0	1.2	17.15

4

Table 4

Phase 3 Drilling Highlights - September 2007 Quarter – Perseverance Diorite Hosted Stockwork Mineralisation

Hole ID	Comments	From (m)	To (m)	Length (m)	Au g/t
07PEC018		67.0	70.0	3.0	2.05
07PEC024		151.0	153.0	2.0	1.42
07PED018		71.0	74.0	3.0	1.27
		184.0	186.0	2.0	2.46
		202.0	204.0	2.0	2.00

Resource Upgrades

In addition to the Perseverance resource upgrade, the RJV continued work on upgrades for several other key deposits located within the Coolgardie Gold Project.

Subsequent to the end of the quarter the RJV completed a significant Indicated Resource upgrade for the nearby Dreadnought ore body. The result represented an increase of greater than 150%, from 970,000t @ 2.5 g/t Au, for 78,000 ounces, to 3.024Mt @ 2.02 g/t, for 196,392 ounces.

The previous total resource was calculated for Dreadnought during 2005. Based on a cut-off of 1 g/t Au, it comprised an Indicated Resource of 970,000t @ 2.5g/t Au and an Inferred Resource of 2.57Mt @1.9 g/t Au, for a total of 234,958 ounces of contained gold.

The current total Dreadnought resource, based on a cut-off of 1 g/t Au, comprises an Indicated Resource of 3.024Mt @ 2.0 g/t Au and an Inferred Resource of 434,342t @ 1.76 g/t Au, for a total of 220,978 ounces of contained gold.

The upgraded resource, which represents an exceptional conversion rate from total Inferred to total Indicated ounces, will be optimised for inclusion in Bankable Feasibility Study.

Currently, the combined resource for the Coolgardie Gold Project measures in excess of 1.6 million ounces of gold, comprising a Measured Resource of 545,000t @ 1.77 g/t Au, Indicated Resource of 8.085Mt @ 1.79 g/t Au and Inferred Resource of 11.657Mt @ 2.96 g/t Au.

Toll Treatment Agreement

Subsequent to the end of the June Quarter, the RJV finalised a sub-lease extension for the Higginsville Mining Greenfields processing plant. A prime condition of the sub-lease extension included the priority toll treatment of Redemption Joint Venture ore of up to 480,000 tonnes per annum.

The ore will be treated at the Greenfields mineral processing plant, owned and operated by Higginsville Mining which is located on a RJV lease adjacent to the RJV’s 1.2mtpa Three Mile Hill processing facility.

The combined sub-lease extension and toll treatment agreement with Higginsville Mining facilitates the commencement of production from the Coolgardie Gold Project prior to a planned re-commissioning of the Three Mile Hill plant.

Exploration Drilling

The RJV is continuing to expand the production potential of the Coolgardie Gold Project through extensive follow-up and resource drilling at several identified mineralized zones.

Subsequent to the end of the quarter, priority exploration drilling commenced at the Bayleys and CNX targets to test near-surface gold targets identified in geoscientific, data compilation and validation programs recently completed by the RJV. The programs, comprising 1,500m of reverse circulation (RC) drilling, cover historically mined areas, un-mined high-grade intersections within historic drill holes, untested extensions and potential new areas of mineralisation.

Significantly, extensive existing underground infrastructure within the RJV’s Bayleys project area could be rehabilitated for potential near-term production.

5

Nickel – Nepean Nickel Project

During the quarter, Focus Minerals commenced a Feasibility Study into the re-commencement of mining from the historic Nepean Nickel Mine.

Focus Minerals is targeting first development work in early 2008 ahead of initial mining in the 2[nd] Quarter 2008. The Feasibility Study, including infill drilling at the Nepean Mine site, is on schedule for completion during the December 2007 Quarter.

A recent re-estimation of the project’s Inferred Resource resulted in a 45% upgrade to 591,000t @ 2.2% Ni.

The Nepean Nickel Project is centred on the Nepean Nickel Mine which produced 32,303t of nickel metal between 1970 and 1987 at a recovered grade of 2.99% Ni from 1.1Mt of ore.

During the quarter Focus Minerals commenced discussions with Ramelius Resources Ltd regarding the potential to refurbish the existing nickel circuit at Ramelius’ Burbanks processing plant, located 10km north of Nepean. Refurbishing the circuit would enable Focus Minerals to produce nickel concentrate containing significant platinoid and cobalt credits.

Focus Minerals has commenced rehabilitation of the Nepean Mine shaft to facilitate access to existing underground workings and to enable a comprehensive assessment of the economic potential of the Underground Remnant Inferred Resource. On completion of the shaft rehabilitation, the remnant ore will be sampled, surveyed and mapped, to determine optimal mining methods using a decline development.

During the coming quarter Focus Minerals will assess the potential to further increase resources within the project area, through additional exploration programs including the test drilling of four recently identified VTEM anomalies located approximately 1.5km south east of the mine. A new parallel VTEM anomaly, located immediately west of the original Nepean ore body, will also be tested.

COMPETENT PERSON’S STATEMENT

The information in this report relating to Resources and Reserves is based on work supervised by Mr Chuck McCormick who is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr McCormick 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 reported on. Mr McCormick is Exploration Manager of Focus Minerals Ltd and consents to the inclusion of the material in the form and content in which it appears.

ENDS

Released by: On behalf of: Nicholas Read/Susan Bower Peter Williams, Managing Director Read Corporate (inc Jan Hope & Partners) Focus Minerals Limited Telephone: (+61-8) 9388-1474 Telephone: (+61-8) 9215-7888 Web: www.focusminerals.com.au

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 currently fast tracking development of its wholly-owned Nepean Nickel Project (current estimated resource totaling 591,300t @ 2.2% Ni) located 25km south of Coolgardie. Focus has a view of recommencing mining operations from the historic production centre in 2008.

Through its Redemption Joint Venture with Canadian-based Committee Bay Resources Ltd, 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. The Redemption Joint Venture holds the mineral rights to more than 210sq km of tenements including Measured, Indicated and Inferred Resources exceeding 1.6 million ounces of gold as well as the 1.2mtpa Three Mile Hill processing plant.