Brisbane, June 26, 2008 (ABN Newswire) - Kangaroo Metals Limited (ASX:KML), a diversified exploration and mining company with projects in North Queensland and Tasmania, has commenced mining and processing operations at the Riverside Alluvial Tin Mine in northeast Tasmania.

Modifications of the mobile plant to increase throughput are expected to be completed by June 29 with full production to commence June 30. Further stepwise changes to workflow will be implemented to increase efficiencies and throughput over the coming months.

The initial minor modifications will eliminate more oversized material and will see the throughput of the plant increased from 100m3/h to over 250m3/h to allow for increased production in the coming months.

Trial mining of a small area of the indicated resource has confirmed the grades found during bulk sampling. Mining operations currently underway will generate an 8,000m3 stockpile of alluvium ready for treatment to place the plant in full production at the completion of the modifications. Two tonnes of high-grade cassiterite concentrate have already been produced during testing and await shipping.

Kangaroo Metals Limited has selected Thaisarco to process the concentrate with the initial shipment of ten (10) tonnes of concentrate expected in July.

Production costs derived from trial mining are estimated at $3.34 per cubic metre (mined and processed for shipping).

"KML is extremely happy with the progress and efficiencies implemented so far, and the strategies identified to increase production in a controlled stepwise manner. We look forward to the site entering full production in ten days time and our first shipment."

Note:

This report is based on and accurately reflects information compiled by Dr Brian New, PhD, who is a fulltime employee of the Company. Dr New has sufficient experience which is relevant to the style of mineralization 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. Dr Brian New consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.