Sydney, Nov 13, 2006 (ABN Newswire) - Olympia Resources Ltd (ASX: OLY) ("Olympia") is pleased to announce it has entered into a life of mine toll treatment agreement for the Keysbrook mine with Cable Sands (WA) Pty Ltd ("Cable Sands") which is a wholly owned subsidiary of Bemax Resources Limited (ASX: BMX) ("Bemax").

Cable Sands is the longest standing mineral sands company in Western Australia and has been mining and processing mineral sands in the southwest of Western Australia for 50 years. Under the agreement, Cable Sands will treat wet concentrates from Olympia's Keysbrook mineral sands project, 75 kilometres south of Perth at its processing plant near the port of Bunbury.

The agreement covers the life of mine at Keysbrook, which is estimated to produce 120,000 tonnes of Heavy Mineral Concentrate per annum for eight years.

Olympia's Managing Director Peter Gazzard said "The toll treatment agreement with Bemax will enhance the projects economics and save Olympia some $13 million in capital costs by not having to build its own processing plant. The revised capital cost of the project will be approximately $18 million."

Heavy mineral concentrates produced at Keysbrook will be trucked to Bunbury for processing and then shipped directly from the Port of Bunbury to Olympia's customers in North America and Europe.

Mr Gazzard added, "The agreement with Bemax has been executed on sound commercial terms and provides Olympia with a low cost method of realising value for its shareholders and delivering product for our customers in a timely fashion. Olympia is pleased to be associated with the experienced Cable Sands operation at Bunbury and its progressive parent company Bemax."

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