GENESIS RESOURCES LIMITED - Capital/Financing Update 2009

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22 December 2009 GENE0C0R\ASX026

GENESIS RESOURCES COMPLETES APPLICATION FOR MINERAL LEASE APPLICATION FOR McARTHUR RIVER PROJECT

Following the recent listing on the Australian Securities Exchange, Genesis Resources Limited (ASX: GES) (Genesis or the Company) is pleased to announce to the market that the Company has lodged an application for a Mineral Lease within the McArthur River Manganese Project, located in the Northern Territory.

The McArthur River project is located approximately 850 kilometers south east of Darwin, in the Northern Territory, and 450 kilometers north-west of Mount Isa in Queensland. The project comprises one granted Exploration Licence (EL 24814), which covers a total area of 505.6 km2. The project is easily accessed from the Carpentaria Highway and is 265 kilometers by road from the working port at McArthur River.

In 2007, the Company engaged Resource Potentials Pty Ltd to carry out compilation, processing and targeting of government open file airborne electromagnetic data and to review available gravity data for manganese and base metal mineralisation over the Company’s granted Exploration Licence, EL24814. The assessment indicated outcropping manganese mineralisation at the Masterton No.2 Prospect and subsequently proposed geophysical surveys is conducted to target undetected mineralisation around previously defined manganese occurrences, within mineralised corridors and anomalous geochemistry. Manganese occurrences appear to be structurally controlled over the Masterton No.2 Project.

Based on these result, Genesis has applied for a Mineral Lease (known as MLA 27888) from the Northern Territory Department Titles Division. The total Mineral Lease area applied for is 934 hectares. The Company anticipates that geological mapping and ground EM surveys will commence during the dry season in the Northern Territory, around May-June 2010. RC drilling is thereafter expected to commence around July-August 2010 to test the outcropping manganese mineralisation along strike and to test the depth extensions. The Company believes that high resolution Aerial Electro-Magnetic surveys may be an effective tool for detection of manganese in the project area and that the area may also be prospective for lead and zinc.

The historical review carried out by Resource Potentials Pty Ltd on behalf of the Company in 2007 (as referred to above) identified 13 target areas of interest, some of which contain multiple electromagnetic anomalies which the Company intends to follow up. Of these thirteen target areas, four are considered high priority for ground reconnaissance.

A site visit to the McArthur manganese project was completed by Mathew Cooper of Resource Potentials on the 23rd and 24th of October 2008. The purpose of the site visit was to validate the location of the Masterton No2 Manganese occurrence, collect representative samples for assay, and observe the form and structure of the manganese occurrences in order to make an initial assessment on the potential for the area to host a large Manganese resource and propose recommendations for future work. Historically, the prospect area was mapped as having eight joints with manganese along with an aggregate length of 1,400 metres and an average width of six metres, within an area of about 50 hectares.

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The Masterton No.2 prospect was first mapped and sampled by Enterprise Exploration Ltd (Murray 1953). The manganese lenses at Masterton No.2 are interpreted to be flat-lying or shallow-dipping based on drilling undertaken to date. Five reverse circulation (RC) drill holes totalling 160 metres have been drilled into three of the largest exposures, but only three holes reached the planned depths, with two abandoned due to poor drilling conditions. Only 25% of the proposed drilling was completed. No assay results were present within the report.

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Figure 1: Masterton No2 Looking up towards western most portion of Mn ridge.

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Figure 2: Masterton No2 example of Mn outcrop (Coord: 760719E, 8097822N)

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Figure 3: Masterton No2 showing limited thickness and shallow dip of Mn, overlying chert/dolomite. (Coord: 760679E, 8097926N)

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Reconnaissance of several high priority targets defined from a previous Aerial Electro-Magnetic survey was also conducted.

A brief reconnaissance rock chip sampling program was conducted over the Masterton No.2 prospect and the surrounding areas in October 2008. High grade manganese assay results were obtained and are presented in the Table 1.

Table 1: Selected Reconnaissance Rock Chip sampling over Masterton No.2 Assay Results

Sample	Easting	Northing	Sample Type	Mn%	Al%	Fe%	K%	Mg%	P%	Si%
MR001	751158	8119492	OUTCROP	21.2	0.405	3.8	0.238	0.19	0.116	26.7
MR002	751200	8119482	OUTCROP	41.9	0.682	3.71	1.24	0.231	0.0496	10.2
MR003	760013	8098310	OUTCROP	44.4	0.952	14.6	0.929	0.091	0.0393	1.29
MR004	760064	8098293	OUTCROP	52.1	0.443	5.62	0.1515	0.035	0.0315	3.13
MR005	760012	8098316	OUTCROP	25.8	0.825	31.7	1.325	0.086	0.0959	1.44
MR007	760166	8098095	FLOAT	15.65	3.8	32.5	0.857	0.048	0.0184	6.26
MR008	760362	8097833	OUTCROP	49.3	0.913	2.84	2.05	0.062	0.283	4.66
MR009	760440	8097850	OUTCROP	43.5	0.972	6.16	1.845	0.058	0.409	6.22
MR010	760687	8097933	OUTCROP	44	0.709	2	3.01	0.066	0.234	8.39
MR011	760659	8097895	OUTCROP	53	0.513	0.766	3.21	0.042	0.509	1.9
MR012	760719	8097825	OUTCROP	45.4	1.115	8.04	1.81	0.084	0.312	3.11
MR013	760728	8097902	OUTCROP	53.1	0.528	1.9	2.36	0.056	0.221	2.35
MR014	761087	8098105	OUTCROP	45.6	1.025	3.25	3.08	0.081	0.1605	5.97
MR015	761081	8098019	OUTCROP	51.1	0.958	2.47	2.28	0.096	0.228	3.11
MR016	761185	8098025	OUTCROP	49.5	0.813	0.6	3.81	0.066	0.417	4.56
MR017	761206	8098030	OUTCROP	48.3	0.952	2.52	1.95	0.133	0.174	4.97

In commenting on this significant milestone on the pathway to production, Pedro Kastellorizos, Managing Director, Genesis Resources said: “We are delighted to have completed our application for a Mineral Lease within our McArthur River Manganese Project.

We are excited about the potential of this prospect and are eager to begin the necessary geophysical surveys to target undetected mineralisation, potentially leading to the hosting of a significant Manganese deposit.”

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