Perth, Dec 10, 2007 (ABN Newswire) - Universal Resources Limited (ASX: URL) is pleased to announce the preliminary financial results from the feasibility study of its Roseby Copper Project, located near Mt Isa, Queensland. Technical results from the study were announced on 16 November 2007.

Financial modelling of a range of scenarios indicates robust financial outcomes for the proposed Roseby operation. Net present value (NPV) for the project has been estimated on a pre-tax basis and before adjusting for debt financing of the capital costs of the project. A discount rate of 8.5% has been used. Based on the assumptions used, the project NPV's, based on Ore Reserves only, range from $107 million $520 million. The internal rate of return (IRR) is estimated to range from 17% to 47%.

Universal's current market capitalisation, based on its issued capital, is approximately $27 million. Fully diluted market capitalisation, assuming all Converting Notes not yet converted are converted at 18c per share, is approximately $35 million. This is well below the lowest estimated NPV of $107 million.

Study Parameters

A two phase development proposal has been investigated by Como Engineers Pty Ltd. Phase 1 of the operation, with a throughput of 4 million tonnes per annum (Mtpa) will be followed by Phase 2 expansion to a likely 8Mtpa. Results reported herein have been estimated to an accuracy of +/- 20% but will be refined to an accuracy of +/-15% in the final Definitive Feasibility Study, due around year-end 2007. Due to the fact that commissioning of Phase 2 expansion is unlikely to be much before 2012, this part of the study will be estimated to an accuracy of +/- 20%.