PHOSCO LTD — Regulatory Filings 2012

Sep 17, 2012

ACN 139 225 771 ABN 82 139 255 771

Level 4, 100 Albert Road South Melbourne VIC 3205

Phone: +61 (0)3 9692 7222 Fax: +61 (0)3 9077 9233 generaladmin@celaminnl.com.au

Board of Directors

Martin Broome, Non-Exec Chairman

David Regan, Managing Director

Melanie Leydin, Non-Exec Director

Timothy Regan, Exec Director

Company Secretary

Melanie Leydin

Securities on Issue

CNL: 151,822,152 ordinary shares

CNLOA: 75,984,913 options expiring 28 June 2013

CNLO: 25,358,026 options expiring 31 March 2014

CNLCA: 15,404,296 partly paid shares

Chaketma Phosphate Project: Ongoing Drilling and Trenching Results Confirm Quality of Deposit

Highlights

Drilling:

CHDD-2012-27 36m@20.87% P205 CHDD-2012-25 34.4m@21.16% P205 CHDD-2012-22 14.8m@20.26% P205 CHDD-2012-21 10.8m@20.92% P205 CHDD-2012-24 10.2m@20.39% P205 CHDD-2012-23 9.7m@21.47% P205 Trenching: CHT030 30m@22.85% P205 CHT038 20 m@20.07% P205 CHT029 19m@22.87% P205 CHT033 18m@24.43% P205 CHT034 18m@24.11% P205 CHT028 15m@24.29% P205 CHT026 12m@23.83% P205

Celamin Holdings NL (ASX: CNL, "Celamin" or the "Company") is pleased to announce the results of 10 diamond core drill holes and 16 trenches of its drilling and trenching program at the Chaketma Phosphate Project in Tunisia. The program was designed to test the Kef El Louz, Sidi Ali Ben Oum Ezzine and Doaur Ouled Hamouda prospects in the Chaketma Project area (see Figure 1).

Celamin Managing Director David Regan said, "These exploration results, particularly the drilling results from Kef El Louz, continue to confirm the quality of the phosphate deposit at Chaketma.

"As the exploration work progresses, we are confident that we will be able to identify a low strip ratio area with good grades in the Kef El Louz area where we can commence production."

Background

Celamin Holdings NL and its local partner Tunisian Mining Services SARL ("TMS") are continuing to advance the Chaketma Phosphate Project in Tunisia. Ongoing exploration is aimed at defining a JORCcompliant mineral resource following the results of the Chaketma Project Scoping Study, announced on 14 August 2012.

The Scoping Study emphasised the need to identify areas of high-grade phosphate with good metallurgical properties at a low strip ratio. To this end drilling at Chaketma continued to focus on the northern end of the Kef El Louz prospect. The Company's aim is to have this resource base defined by December 2012. Trenching is also being conducted at the other prospects at Chaketma, ahead of future drilling campaigns.

The Kef El Louz prospect is the largest of five prospects within the Chaketma exploration concession. It is approximately six kilometres from north to south, covering more than three square kilometres. Mapping, trenching and drilling at the north-western corner of this prospect confirms that this area has the potential to meet grade, metallurgical and strip ratio criteria. Exploration is continuing with the aim of delineating 25-30 million tonnes of phosphate mineralisation from the Kef El Louz prospect, which would be sufficient for an initial 10 years of production*.

The Chaketma exploration program consists of mapping, drilling and channel sampling of Chaketma exploration permit, including the Gassa Kebira, Sidi Ali Ben Oum Ezzine, Kef EL Louz and Douar Ouled Hamouda prospects.

* The potential quantity and grade of these phosphate deposits, reported as exploration targets, is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. Accordingly, the assumptions used in the Scoping Study might never be realised.

Drilling and Trenching Results

At the time of preparing this report, Celamin and TMS had completed 42 diamond drill holes for 3,554 metres and 77 trenches totalling 733 metres at Chaketma. Seventeen diamond drill hole results have been previously announced.

The results are now available for a further 10 diamond drill holes (Table 1 and Figures 2 & 3) and 16 trenches for an additional 213 metres of channel sampling. Of these trenching results, 13 are from Sidi Ali Ben Oum Ezzine and Kef El Louz, and three are from Daour Ouled Hamouda (Table 2 and Figures 4 & 5).

Drill Hole	From (m)	To (m)	Intercept (m)	% P2O5	% CaO
CHDD-2012-018	Intersected Fault/No Phosphate
CHDD-2012-019	52.7	61.1	8.4	19.78	41.42
CHDD-2012-020	Abandoned in cavity
CHDD-2012-021	57.1	67.9	10.8	20.92	41.68
CHDD-2012-022	28.4	45.2	14.8	20.26	39.50
CHDD-2012-023	17.9	27.6	9.7	21.47	42.26
CHDD-2012-024	42.5	51.5	10.2	20.39	20.66
CHDD-2012-025	43.3	77.0	34.4	21.16	40.67
CHDD-2012-026	69.9	76.9	7.9	20.29	40.62
CHDD-2012-027	32	68	36.0	20.87	40.07

Table 1: Recent Drilling Intercepts From Kef El Louz

Note: Intercepts lengths are measured down hole.

The phosphate intercepts in the current drill holes range from 8.4 metres to 36.0 metres at down hole depths of 17.9 metres to 69.9 metres. The apparent waste-to-ore ratios in these holes range from less than 1:1 to approximately 8:1.

The results on the western flank of Kef El Louz are very encouraging with results of up to 36 metres of phosphate at an average grade of 20.87% P2O5 .

Hole CHDD18 of Kef El Louz intersected a fault zone and failed to return positive phosphate results, while hole CHDD20 intersected karsting on a fault and was abandoned. Celamin is proposing to trial geophysical techniques to help to understand the fault zones and karst features better.

Trench ID	ProspectLocation	No. of	Length
		Samples	(m)	% P2O5	% CaO
	Douar Ouled
CHT023	Hamouda	2	1.4	16.77	40.16
	Douar Ouled
CHT024	Hamouda	2	3.0	24.28	44.43
	Douar Ouled
CHT025	Hamouda	4	6.5	18.39	41.38
CHT026	Kef El Louz	12	12.0	23.83	44.71
CHT027	Kef El Louz	12	13.6	20.45	41.53
	Sidi Ali Ben
CHT028	Oum Ezzine	16	15.0	24.29	44.90
	Sidi Ali Ben
CHT029	Oum Ezzine	19	19.0	22.87	44.33
	Sidi Ali Ben
CHT030	Oum Ezzine	30	30.0	22.85	43.89
	Sidi Ali Ben
CHT031	Oum Ezzine	11	11.5	24.22	43.93
	Sidi Ali Ben
CHT032	Oum Ezzine	8	8.0	19.66	39.87
CHT033	Kef El Louz	19	18.0	24.43	44.11
CHT034	Kef El Louz	19	18.0	24.11	43.72
	Sidi Ali Ben
CHT035	Oum Ezzine	7	8.0	22.16	45.06
	Sidi Ali Ben
CHT036	Oum Ezzine	12	12.0	20.73	43.70
	Sidi Ali Ben
CHT037	Oum Ezzine	5	17.44	17.44	41.62
	Sidi Ali Ben
CHT038	Oum Ezzine	20	20.0	20.07	42.46

Table 2: Recent Trenching Results

Trenching and channel sampling (Table 2 and Figures 2 & 3) continued on the prospects of Kef El Louz (CHT026, CHT027, CHT033, CHT034), Douar Ouled Hamouda (CHT023, CHT024, CHTO25) and Sidi Ali Ben Oum Ezzine (CHT028, CHT029, CHT030, CHT031, CHT032, CHT035, CHT036, CHT037, CHT038).

The most important phosphate intercepts were encountered on the Sidi Ali Ben Oum Ezzine prospect in channels CHT029, CHT030 and CHT038 (19m@22.87%, 30m@22.85% and 20m@20.07%, respectively) and on the Kef El Louz prospect in channels CHT033 and CHT034 (19m@23.26% and 19m@22.84%, respectively). Note that at CHT023 the upper part of the trench could not be accessed with sampling equipment so only the bottom part was sampled.

Sampling and Assaying Procedures

Core from the drill holes was half split and sampled after geological logging, generally at one-metre intervals or to lithological boundaries; which was also the case for trench sampling. The samples were crushed and riffle split, and 500 gram splits were sent to Al Amri Laboratory in Jeddah, Saudi Arabia for determination of major oxides by X-Ray Fluorescence (XRF) methods on fused "buttons".

In order to reduce assay turnaround times, Celamin and TMS have prioritised analyses for the major element oxide. All the samples will also be assayed for a comprehensive suite of 34 trace elements in due course.

The project partners continue to experience delays with assay turnaround times and are taking steps to address those areas within their immediate control, including installation of new sample preparation equipment in Tunisia.

Figure 2: Drill Hole locations - Kef EL Louz prospect

Figure 3: Drill Hole Locations - Sidi Ali Be Oum Ezzine

Figure 4: Channel Sampling and Trench locations – Sidi Ali Ben Oum Ezzine, Kef El Louz

Figure 5: Channel Sampling locations - Douar Ouled Hamouda

COMPETENT PERSONS STATEMENT

Information in this report that relates to Exploration Results from Chaketma is based on information compiled by Ms Sue Border, who is a member of the Australasian Institute of Mining and Metallurgy. Ms Border is a consultant geologist and has sufficient experience relevant to the style of mineralisation and types of deposit under consideration and to the activities reported on to qualify as a Competent Person as defined in the 2004 Edition of the "Australian Code for Reporting of Mineral Resources and Ore Reserves. Ms Border consents to the inclusion in this report of the matters based on information in the format and context in which it appears.

DISCLAIMER

This report contains certain forward-looking statements. The words 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target', 'plan', 'potential' and other similar expressions are intended to identify forward-looking statements.

Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Celamin, and its officers, employees, agents and associates, that may cause actual results to differ materially from those expressed or implied in such statements.

Actual results, performance or outcomes may differ materially from any projections and forward-looking statements and the assumptions on which those assumptions are based. Exploration Targets are conceptual in nature and further exploration, by drilling and trenching might not convert these in to identified Mineral Resources.

You should not place undue reliance on forward-looking statements and neither Celamin nor any of its directors, employees, servants or agents assume any obligation to update such information.

About Celamin Holdings NL

Celamin Holdings NL (ASX Code CNL) is an ASX listed company focused on the exploration and development of resource projects in North Africa initially in Tunisia and Algeria.

Celamin holds the Chaketma Phosphate exploration permit in Tunisia with TMS. This project is Celamin's current focus as it has larger target potential than Celamin's other Phosphate project Bir El Afou. Ongoing results from channel sampling, drilling program and historic data at Chaketma have been announced. The Chaketma project would use the same rail and port infrastructure as identified in the Bir El Afou pre-feasibility studies.

Celamin continues to step up work to carry out a due diligence drilling program for its farm-in to an Exploitation Permit at the Oued El Kebir precious and base metal project in Algeria.

Celamin has also acquired rights to several base metal tailings Projects in Tunisia with TMS and is the holder of three Exploration Permits with base metal (Pb/Zn) targets on a 50/50 basis with TMS.