VERITY RESOURCES LIMITED — Capital/Financing Update 2008

Apr 15, 2008

ACN 122995073

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TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED DATE: 16 April 2008

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Nickel Exploration in Botswana: Update

Highlights

• Massive and disseminated sulphides intersected in drilling at Maibele North

• Assay results for drilling conducted in 2007 have been received.

• Significant grades of Nickel and Copper have been intersected with grades up to 2.48% Ni and 1.05% Cu in both massive and disseminated sulphides

• Importantly good grades of Platinum Group Elements (PGE) plus gold have also been intersected at Maibele North (all new assays are reported in table 1)

• Further assays are expected to be available in coming weeks

Maibele North - History

Maibele North lies within the Magogaphate project area (PL110/94) some 50km to the north east the Selebi Phikwe nickel mine. Maibele North was first investigated in the 1950’s by the Botswana Geological Survey, who investigated the ancient copper workings at site. The Maibele North prospect was later explored in the early1960’s by Roan Selection Trust. However, their interest in the deposit terminated when they discovered the nearby world-class nickel-copper deposits at Selebi Phikwe, which have been mined continuously since 1972. In the early 1990’s Falconbridge completed 16 diamond holes at the deposit, intersecting substantial grades of massive sulfide nickel copper mineralisation with significant PGE credits.

- Maibele North Recent Drilling

Maibele North was BML’s highest ranked target for initial drilling based on the presence of the previously drilled massive sulphides and the potential to extend the known ore-body along strike, down plunge and infill gaps in past drilling.

The recently completed program comprised 1200 meters of diamond core and 4200 meters of Reverse Circulation holes (RC). Around half of the RC was drilled as precollars to save costs. Of the 24 holes drilled (+ 1 previous hole deepened) at the prospect, 14 hit “significant” mineralisation. The drilling data is now being studied to enable digital remodeling of the new and historical drill data. This, coupled with re-interpretation of the recent EM and IP geophysical survey data at the deposit, will allow the generation of additional drill targets to be pursued in future. The improved understanding of the Maibele North deposit will greatly assist in the upcoming exploration of similar, undrilled, ultramafic bodies within the BML tenement package.

1

Botswana Metals Limited Suite 5.10 Level 5 Pacific Tower 737 Burwood Rd Hawthorn Vic 3122 Australia

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Figure 1- Location map showing the BML tenement position. The Maibele North prospect is located in PL 110/94.

GEOLOGY

Nickel mineralisation encountered at Maibele North is associated with both massive and disseminated sulphides, comprising Pentlandite (Ni sulphides), Chalcopyrite (Cu sulphides) and Pyrrhotite (Fe sulphides). The sulphides tend to occur towards the base of a deformed ultramafic unit although at times they have been remobilized into the gneissic footwall unit. The main mineralised zone at Maibele North dips steeply (60-70º) to the south and the ore shoot is interpreted to plunge shallowly to the south east.

Similar styles of nickel mineralisation occur at the nearby Selebi-Phikwe underground mine which has been in continuous operation since 1970 with production planned to continue until at least 2011.

ASSAY RESULTS

								Total
			Drilled	True				2PGE+Au
HOLE	FROM	TO	width	Width	Ni%	Cu %	Co %	(g/t)
MARD0027	66.0	80.6	14.6	14.4	0.43	0.17	0.03	0.43
Including	75.0	80.6	5.6	5.5	0.52	0.25	0.04	0.50
MARD0028	98.7	100.8	2.1	2.1	0.68	0.62	0.05	0.88
Including	99.1	100.3	1.2	1.2	1.01	0.95	0.07	1.02
	103.2	103.5	0.3	0.3	1.16	0.09	0.05	1.04
	104.8	107.5	2.7	2.7	1.62	0.27	0.11	0.87
Including	105.8	107.3	1.5	1.5	2.42	0.30	0.16	1.17
MARD0029	142.4	144.1	1.7	0.6	2.21	0.55	0.15	2.21
	147.7	152.7	5.0	4.9	1.05	0.31	0.08	0.70
Including	147.7	149.4	1.7	1.7	2.33	0.58	0.17	1.37
MARD0030	185.9	190.7	4.8	2.7	1.30	0.57	0.10	1.66
Including	186.9	188.4	1.5	0.3	1.52	0.68	0.15	1.80
Including	189.4	190.7	1.3	1.3	2.36	1.05	0.15	1.38
	193.1	193.9	0.8	0.8	2.48	0.94	0.15	1.87

• Table 1 Recently received assays. PGE=Platinum Group Elements). Assays were completed at Genalysis Laboratories in Perth Australia

Ongoing Exploration

• Based on the recent drilling a new 3D model of the geology and mineralisation at Maibele North is being constructed.

• Significant PGE grades from the drilling shown in table one is being re-assayed by a different technique to provide a breakdown of the individual elements (Platinum. Palladium, Rhodium, Ruthenium, Osmium, Iridium plus Gold).

• Recently received geophysics for the Mmamanaka prospect is now being interpreted in preparation for drilling in the next quarter.

• Soil sampling is underway on several prospects including Kudumane, Takane, John Bentham, Sampowane East, 28B and Mmamanaka East

• Trenching will commence over the Airstrip copper anomaly to the south west of the Maibele North prospect, significant amounts of supergene Cu mineralisation are exposed in old trenches.

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Figure Two. Location of main geophysical targets. Background image is a GEOTEM map indicating EM anomalies in red. High priority targets are named in red lower priority targets are named in black.

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Dr Andrew J. Tunks Managing Director Botswana Metals Limited

Information in this report that relates to exploration results is based on information compiled by Dr Andrew Tunks who is a member of the Australian Institute of Geoscientists. Dr Tunks is a fulltime employee of the Company. Dr Tunks has sufficient experience which 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.” Dr Tunks consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.