Acceleration of WIM150 Project Evaluation: 

Since 2004 development of the WIM 150 Mineral Sands Project has continued. Highlights of which have been:

• Completion of several resource drilling programmes
• Metallurgical testwork programmes
• A Pre-Feasibility Study
• Commencement of a Bankable Feasibility Study
• Hydrogeological pumping tests

Australian Zircon test work in 2004-06 used new generation mineral concentration equipment to achieve acceptable recoveries of WIM150 heavy minerals into an 86% heavy mineral concentrate. In further test work the Company used up-to-date mineral separation equipment to achieve potentially acceptable recoveries of zircon "product" separated from the titanium and trash minerals contained in the WIM150 heavy mineral concentrate. The Company is entitled to earn an 80% equity interest by completing a Bankable Feasibility Study for development of the project.

The BFS is expected to be delivered during the second quarter of 2012. Building on the results obtained to date, Australian Zircon is confident that the large resources defined at WIM150 will support a world class zircon and titanium mineral development.

All of this work is expected to add significantly to shareholder value as the Company realises its aim to become a world class supplier of zircon and associated titanium minerals.