Perth, Apr 5, 2006 (ABN Newswire) - Olympia Resources Ltd (ASX: OLY) is pleased to announce it has discovered a new heavy mineral resource area on its tenements in Southwest WA that increases its existing resource assets by 30% and has the potential to extend mine life for the Company.

The new resource, Yalyalup, located in Southwest Western Australia, contains an inferred mineral sands resource of 19.9 million tonnes of sand ore containing 1.1 million tonnes of heavy mineral (HM) at an average grade of 5.5% HM.

Olympia's Managing Director Mr Peter Gazzard said: "This new resource has the potential to extend the length of time that Olympia can mine mineral sands in Southwest WA past the 8 year life of the Keysbrook mine".

"This latest discovery was made as a result of Olympia's model for mineral sands exploration and confirms the high prospectivity of the Company's Southwest exploration tenements in Western Australia. Olympia is continuing exploration in the area with the expectation of finding further resources," Mr Gazzard said.

The Yalyalup resource is located 15 kilometres east of the Ambergate Project and has a mineral suite typical of the Southwestern deposits.

Mineralogy              Dune1        Dune2       Beach
------------------------------------------------------
Ilmenite                19.7         20.0        36.7
Altered Ilmenite        22.0         22.1        48.3
Magnetic Leucoxene      37.1         34.7         0.9
Rutile                   1.1          0.7         0.7
Non Magnetic Leucoxene   5.9          4.3         0.5
Zircon                  11.5         14.0         8.1
------------------------------------------------------
TOTAL Valuable
heavy Mineral (VHM)      97.3         95.8        95.2
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The drilling program, which commenced in February 2006 drilled 32 holes to establish an inferred resource using a 2% HM cut-off grade. The table below details the inferred resource for the Yalyalup area.

Inferred Resource

                     Ore (t)      HM%   Slimes%   HM (t)
Inferred
---------------------------------------------------------
Beach Placer         6,062,000    5.7   21.0      345,000
Dune 1               6,399,000    6.5   17.1      415,000
Dune 2               7,469,000    4.4   15.9      326,000
---------------------------------------------------------
TOTAL               19,930,000    5.5   17.8    1,086,000

The Olympia heavy mineral sands resource inventory has been updated to include the latest Yalyalup resources.

Olympia Resources Ltd Heavy Mineral Sands Resource Inventory April, 2006

                     Ore (t)      HM%    Slimes%   HM (t)
Keysbrook*
Measured             56,000,000   2.6%   8.0%    1,450,000
Indicated             5,000,000   2.5%   7.9%      130,000
Inferred              3,000,000   2.5%   8.3%       85,000
----------------------------------------------------------
Ambergate#
Measured              3,122,000   6.2%  16.3%      192,400
Indicated             3,696,000   5.9%  12.9%      219,000
----------------------------------------------------------
The Loop#
Inferred             11,500,000   7.2%  26.5%      820,000
----------------------------------------------------------
Keysbrook South*
Indicated            13,600,000   2.24% 11.0%      305,000
----------------------------------------------------------
North Dandalup#
Inferred             10,700,000   4.5%  25%        490,000
----------------------------------------------------------
Coolup*
Indicated             2,000,000   6.0%   9.3%      120,000
----------------------------------------------------------
Yalyalup*
Inferred             19,900,000   5.5%  17.8%    1,100,000
----------------------------------------------------------
Total               128,518,000   3.8%  13.3%    4,911,400
----------------------------------------------------------

# Reported in Olympia Prospectus
* Resource prepared by John Baxter RPGeo, Olympia Resources Ltd