Perth, Feb 3, 2006 (ABN Newswire) - Olympia Resources (ASX: OLY) is pleased to announced it has signed a long-term zircon supply contract for its flagship Keysbrook mineral sands project located 70km south of Perth in Western Australia.

The contract, for 6,000 tonnes per annum, is with a major European zircon miller and represents half of Olympia's zircon production from the Keysbrook minesite.

Zircon is extremely hard and resistant to corrosion. It is used in the steel industry to line blast furnaces, in the ceramics industry, and in engines, electronics and spacecraft. Zircon products are also used in computer disc drives, for lightweight warmth and protection in clothing, and in many domestic products such as ballpoint pens and wear-resistant knives.

Olympia's Managing Director Peter Gazzard said based on today's zircon prices, the contract represented approximately AUD$48 million in total revenue over the estimated 8 year life of the Keysbrook mine. The estimated total revenue for all titanium and zircon products over the mine life is AUD$317 million".

"This is a significant announcement for the company because it means we have now sold 85 per cent of the value of products produced from Keysbrook," Mr Gazzard said.

"Last year we announced the sale of all of our titanium products from Keysbrook to DuPont - the world's largest titanium pigment producer - and negotiations are well advanced for the sale of the remaining zircon at Keysbrook".

"These contracts mean we are well-positioned to achieve our goal of becoming a diversified supplier of industrial minerals. We've focused on obtaining interests in titanium and zircon resources because of the strong long-term growth prospects of these commodities."

For a full copy of the announcement, as well as a location map, please visit our website at www.olympiaresources.com.

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