Perth, Jan 24, 2008 (ABN Newswire) - Nickelore Limited (ASX: NIO) today announced results from initial exploratory RC drilling at the Siberia Nickel Laterite Project which led to the discovery of a new zone of nickel laterite mineralisation. The Company acquired 100% of the nickel laterite rights at the Siberia Project from Monarch Gold Mining Company Ltd (Monarch) on 21 August 2007.

The Siberia Project covers Monarch's mining tenements M24/51, M24/352, M24/427, M24/546, M24/633, M24/654, M24/754, M24/755, M24/830 and P24/2838.

The Siberia Nickel Laterite Project adjoins the Company's Canegrass Nickel Cobalt Project, 70 kms NNW of Kalgoorlie, where the Company has the mineral rights to 140,000 tonnes of nickel.

Unlike the Canegrass Nickel Cobalt Project, there is no limit on the amount of laterite nickel that may be mined from the Siberia Nickel Laterite Project. The first drill program consisted of sixteen RC drill holes completed in two highly prospective areas (Area 1 & 2) of tenement M24/352, located north of the Canegrass area.

The best nickel result in Area 1 was HSIC229, 28m @ 0.77 %Ni, 0.05% Co, from 22m below surface

The best nickel result in Area 2 was HSIC234, 12m @ 0.74 %Ni, 0.09% Co, from 20m below surface

Managing Director Iggy Tan said today that the initial drill results have discovered new zones of high laterite nickel and cobalt enrichment near the Company's current Canegrass Nickel Cobalt Project. Based on these drill results, the company will look to define a mineral resource within the Siberia Nickel Laterite Project area during the year.

Significant drill intersections at 0.5% Ni cut-off grade.

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Hole ID Area  From To Thickness Ni% Co%
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HSIC222 Area 1 20  26    6     0.60 0.05
HSIC223 Area 1 14  36   22     0.74 0.07
HSIC224 Area 1 18  24    6     0.66 0.06
HSIC225 Area 1 20  32   12     0.76 0.06
               44  48    4     0.55 0.11
HSIC227 Area 1 28  38   10     0.70 0.06
HSIC228 Area 1 36  42    6     0.59 0.06
HSIC229 Area 1 14  20    6     0.62 0.02
               22  50   28     0.77 0.05
HSIC230 Area 1 16  22    6     0.69 0.05
               24  32    8     0.79 0.05
HSIC233 Area 2 18  22    4     0.55 0.06
               24  28    4     0.54 0.06
HSIC234 Area 2 20  32   12     0.74 0.09
               34  38    4     0.57 0.09
               44  48    4     0.53 0.07
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The information in this report that relates to Exploration Results is based on information compiled by Andrew Radonjic a Non Executive Director of Halcyon Group, who is a member of The Australasian Institute of Mining and Metallurgy. Mr Radonjic has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Radonjic consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.