KING RIVER RESOURCES LIMITED — Capital/Financing Update 2009

Mar 23, 2009

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High Grade Vanadium Concentrate Produced at Speewah

ANNOUNCEMENT 24 March 2009

HIGHLIGHTS

• Low intensity magnetic separation of high-grade vanadiferous gabbro produced a magnetic concentrate of 2.64% V2O5 grade at 74% recovery;

• The high (2.64%) tenor is significantly higher that of magnetite concentrates from other primary production vanadium projects in Australia;

• The high (2.64%) tenor of the concentrate achieved using a simple magnetic circuit offers a competitive processing cost advantage;

• Further studies will be completed on the basal high grade zone of the deposit for input into a prefeasibility study into establishing a mine and associated processing of the deposits.

Metallurgical Results

NiPlats Australia Ltd (ASX:NIP) is progressing a prefeasibility study on newly discovered vanadiferous magnetite deposits located in the east Kimberley of Western Australia (Figure 1).

NiPlats commissioned Sinclair Knight Merz (“SKM”) to manage an initial metallurgical programme to investigate the following.

1. Potential methods of beneficiation of vanadiferous titanomagnetite-bearing gabbro to produce a magnetite concentrate.

2. Selected geochemical and physical characteristics of the magnetite concentrate with particular interest in the tenor of the V2O5 in the magnetite.

Results confirm the vanadiferous titanomagnetite bearing gabbro can be treated by low strength magnetic separation to produce a magnetite concentrate assaying 2.64% V2O5 at 74% vanadium recovery.

This result is a significantly higher tenor than reported by other Australian primary production vanadiferous magnetite projects.

These results from the initial metallurgical programme are a critical step in further determining the economic significance of the zones of mineralization. This announcement summarizes results of the study and the implications for future work.

Sample Selection

The metallurgical result is from a composite 10m interval of homogenized RC chips from the high-grade section of SRC151 (75m-85m), located in the discovery zone of Central Deposit (Figure 2). The head assay reports as follows:

Table 1 Head Assay of Sample SRC151 75-85 m by XRF at Ultratrace laboratories

Fe(1) (%)	SiO2 (%)	Al2O3 (%)	TiO2 (%)	CaO(%)	S(%)	V2O5 (%)	FeO(%)	LOI(%)
15.00	45.33	13.05	3.38	9.38	0.018	0.425	14.3	-0.10

(1) Total Fe content

Preliminary Vanadium Beneficiation Programme

The preliminary work programme was designed to examine the following.

1. The potential of low intensity magnetic separation (LIMS) for the recovery of the vanadiferous titanomagnetite from the ground gabbro host.

2. Impact of stepwise cleaning on the recovery and grade of the concentrate.

3. Impact of regrinding and re-cleaning on the recovery and grade of the concentrate.

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Vanadium Recovery Results

Assay results from the recovery programme are presented in Table 2 and can be summarized as follows:

1. A 500 gauss setting on the LIMS produced the best recovery with 85% of the vanadium recovered (Table 2).

2. The tertiary cleaner LIMS magnetic concentrate reported V2O5 at 2.61% and a recovery of 84.7% (Table 2), giving an acceptable overall vanadium recovery from ROM (“Run of Mine”) of 72.3% which is a reasonable recovery from ROM.

3. Regrinding the magnetic concentrate and tertiary cleaning improved the V2O5 grade to 2.64%, decreased contaminants like SiO2 and CaO, and increased the vanadium recovery from ROM to 74.1% (Table 2).

4. The mass recovery from ROM was 11.1% (that is, the amount of magnetite concentrate separated from the gabbro host rock).

5. An assays by size programme on the final re-ground concentrate indicated that a significant proportion of critical contaminants SiO2 and CaO are present in the fine (-7.5 um) fraction.

Table 2 Assay results from the staged beneficiation of sample SRC151 75-85 m

	Fe(1)(%)	SiO2	Al2O3	TiO2 (%)	CaO	S (%)	V2O5 (%)	FeO	LOI
		(%)	(%)		(%)			(%)	(%)
SampleHead-grade	15.00	45.33	13.05	3.38	9.38	0.018	0.425	14.3	-0.10
500gauss LIMS	22.13	37.44	11.38	5.28	7.47	0.024	0.791	19.9	-0.88
500gauss TertiaryClean	55.68	2.96	1.84	14.8	0.74	0.019	2.61	45.2	-4.58
500gauss TertiaryClean - regrind	56.0	2.31	1.76	15.2	0.58	0.0	2.64	43.4	-4.4

(1) Total Fe content

Comparison of Speewah with other vanadium projects in Australia

The work completed to date on the Speewah project allows for a comparison of resources and concentrate V2O5 tenor with published information on other vanadiferous magnetite projects in Australia.

1. Resource comparison

Deposit	Total Mineral Resource Estimates
Speewah(NiPlats)	851Mt @ 0.32% V2O5includinga basal highgrade zone of 279Mt @ 0.39% V2O5.
Balla Balla (1)	502Mt @ 0.65% V2O5(195.8Mt @ 0.66% V2O5Measured, 47.9Mt @ 0.67% Indicated and 258.2Mt @ 0.64% V2O5Inferred)
Windimurra (2)	177Mt @ 0.46% V2O5(46.68Mt @ 0.48% V2O5Measured, 70.73Mt @ 0.47% Indicated, 59.18Mt @ 0.44% V2O5Inferred)
Barrambie(3)	65.2Mt @ 0.82% V2O5 (49.2Mt @ 0.82% V2O5Indicated and 16Mt @ 0.81% V2O5Inferred)

1. Aurox Resources Limited ASX Quarterly Report to 30 September 2008 released 15 October 2008

2. Windimurra Vanadium Limited ASX Quarterly Report to 31 December 2008 released 30 January 2009

3. Reed Resources Limited ASX announcement 13 February 2009

2. Vanadium concentrate specifications

Deposit		Magnetite Concentrate Specifications	Magnetite Concentrate Specifications	Magnetite Concentrate Specifications	Magnetite Concentrate Specifications	Magnetite Concentrate Specifications
	V2O5%	Fe%	TiO2%	SiO2%	Al2O3%	Mass Rec %
Speewah Windimurra (i) Barrambie (ii)	2.64 1.26 1.30 - 1.68	56 15.2 2.31 1.76 11.1 36 - 64 57 na 2.5 1.5 65
Balla Balla(iii)	1.0

• i. Windimurra Vanadium Limited http://www.pmal.com.au/key_life_of_mine_plan_parameters.37.html

ii. Reed Resources Limited ASX announcement 8 August 2007

iii. Aurox Resources Limited ASX Quarterly Report to 30 September 2008 released 15 October 2008; http://www.aurox.com.au/balla-balla-bankable-feasibility-study/

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Conclusions from the Initial Beneficiation Study

Earlier announcements by NiPlats demonstrate that the Speewah Valley contains a very large resource of vanadium magnetite in gabbro. The preliminary beneficiation programme shows that a relatively low intensity (500 gauss) magnetic field can be used to recover the bulk (85%) of the vanadium from the milled rock. When the magnetic field is combined with cleaner circuits the sample upgrades from a V2O5 of 0.425 to 2.64%. The high grade of the concentrate should offer competitive cost advantages in the downstream processing of vanadiferous magnetite into either vanadium pentoxide or ferrovanadium. Further upgrading and depression of contaminants may be possible by including other processing options.

Indications from the current studies suggest that Speewah has the potential to support a long life mining operation producing a concentrate with high tenor vanadium. Further studies are required to examine the cost competitiveness of the operation.

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Figure 1. Location of NiPlats Australia Limited project area in northern Western Australia.

Mr Ken Rogers, Member of the Australian Institute of Geoscientists, Acting Chief Geologist of NiPlats Australia Limited, compiled the technical aspects of this report relating to the Speewah Project and content of this release. Mr Rogers has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being reported on to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code). Mr Rogers consents to the inclusion in the report of the matters in the form and context in which it appears.

FOR FURTHER INFORMATION, PLEASE CONTACT:

NiPlats Australia Limited Level 22 Allendale Square 77 St Georges Terrace Perth WA 6000 Telephone: +61 8 9221 8055 Fax: +61 8 9221 7866

Anthony Barton – Non Executive Chairman Richard Wolanski – Executive Director

Background

NiPlats Australia Limited (“NiPlats) is a mining and exploration company whose prime focus is the definition and development of its vanadium – platinum and fluorite discoveries in the East Kimberly region of Western Australia.

The tenements contain a very large vanadium deposit with Indicated and Inferred Resources totalling 851 Mt at 0.32% (at 0.23% V2O5 cut-off grade), comprising an Indicated Resource of 334 Mt at 0.32% V2O5 and an Inferred Resource of 517 Mt at 0.32% V2O5 which includes a high grade zone of 279 Mt at 0.39% (at 0.365% V2O5 cut-off grade), comprising an Indicated Resource of 107 Mt at 0.4% V2O5 and an Inferred Resource of 172 Mt at 0.39% V2O5.

The tenements also contain a high-grade, high-quality fluorite deposit with Indicated and Inferred Resources totalling 5.5 Mt at 24.5% (at 10% CaF2 cut-off grade), comprising an Indicated Resource of 4.4 Mt at 24.9% CaF2 and an Inferred Resource of 1.1 Mt at 23.0% CaF2. NiPlats Australia Limited has a 100% interest in three granted Mining Leases (M80/267, M80/268 and M80/269) and two granted exploration licences (E80/2863 and E80/3657) covering 473 km[2] located about 100 km southwest of Kununurra. The tenements cover the Speewah Dome where Proterozoic-age Hart Dolerite intrudes older sediments of the Speewah and Kimberley Groups, which has been disrupted by fault and fault splays of the Greenvale Fault Zone that hosts both fluorite mineralisation and carbonatites in the Speewah area.

The potential quantity and grade of the exploration targets referred to in relation to ‘Red Hill’ and ‘Buckman’ Zones is conceptual in nature and there has been insufficient exploration to define a Mineral Resource.

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Figure 2. Geology of the Speewah Project showing the location of drill hole SRC151 used in these metallurgical results and the locations of prospects being explored for Vanadium and PGE mineralisation within a vanadiferous titanomagnetite gabbro unit at the top of the Hart Dolerite.