Victory West Moly Limited (ASX:VWM) Revised Geological Model Supports Significant Increase In Target Area At Anomaly B, Malala Molybdenum Project, Sulawesi Indonesia

Perth, April 7, 2010 AEST (ABN Newswire) - Victory West Moly Limited (ASX:VWM) is pleased to announce it has completed a thorough assessment of all available geological data sets from the Anomaly B prospect, part of the Company's highly prospective Malala Molybdenum Project in Sulawesi, Indonesia (Figure 1). As a result, a robust geological model has been developed which illustrates that significant upside exists at Anomaly B.

As previously announced on 15 March 2010, the Company recently completed an Induced Polarisation (IP) survey over the Anomaly B prospect area, with the survey identifying the contact zone between the Tinombo Formation and the Malala Porphyry. A number of geological data sets, including soil and bedrock geochemistry, as well as historic drilling, indicate this contact zone hosts molybdenum mineralisation of significant grade and width. These results are largely coincident with the IP results and the Company has now been able to accurately define a Target Zone which is in excess of 4km long and up to 300m true width, at this prospect.

Extensive geological data supports revised geological model

The revised geological model for Anomaly B has been developed around various supporting geological data with the resulting interpretation recognising a highly prospective Target Zone which is much larger than previously thought.

The IP survey has identified the contact between the two dominant rock units at Anomaly B - the Tinombo Formation and the Malala Porphyry. Previous exploration, including drilling, has identified a broad zone on this contact as hosting high-grade molybdenum mineralisation over excellent widths. The Company interprets this contact to be highly prospective for continuation of molybdenum mineralisation within this zone.

Figure 2 shows the IP image, illustrating the well defined, geological contact, as well as identifying the position of the Anomaly B Exploration Target* as only a small portion of the newly defined Target Zone. Soil and bedrock (trenching) geochemistry has now been plotted relative to the IP image, illustrating coincident anomalous data sets along a large part of this Target Zone.

Soil geochemistry, illustrated in Figure 3, highlights two distinct anomalous areas within the Target Zone - termed the Northern Limb and the Southern Limb. To date, exploration has been focussed largely on Anomaly B on the Northern Limb, with a number of world-class drilling intersections such as 234m @ 1,680ppm Mo (M12) and 245m @ 1,200ppm Mo (M37). The anomalous Mo-in-soils on the Northern Limb extends for 1.7km, with drilling conducted in an area only 800m in length. The Southern Limb appears to display similar Mo-in-soil anomalism as the Northern Limb however, remains untested by drilling. Anomalous molybdenum geochemistry extends for over 1km on the Southern Limb.

Bedrock geochemistry is available over the Northern Limb, focussing on the area of previous exploration work, including drilling. Figure 4 shows the bedrock geochemistry to be coincident with the Mo-in-soils data on the Northern Limb thus reinforcing a target area extending over 1.7km in length and up to 300m wide. Trenching on the Southern Limb is soon to begin.

Previous drilling on the Northern Limb of Anomaly B has been largely unsuccessful at confirming previous geological models or delineating large areas of continuous, high-grade mineralisation. Approximately 30 diamond drill holes have been completed in the vicinity of the Northern Limb by Rio Tinto (ASX:RIO), Santos (ASX:STO) and VWM, with only three of these holes accurately testing the true width of the Target Zone which is shown to be dipping steeply to the south-west in this area. Drill holes M12 (Rio), M37 (VWM) and M38 (VWM) were the only holes to be properly located and oriented to test this south-west dipping zone, with all three holes returning world-class intersections, as shown on Figure 5. A large proportion of the remaining holes were collared on the north-eastern side of the Target Zone and drilled toward the south-west. A number of these holes returned long continuous molybdenum intersections (eg. 363m @ 600ppm Mo in M30 (Santos)), however it appears they have been drilled down-dip of the mineralised zone and therefore do not accurately test the width and grade of the newly defined Target Zone.

Revised Geological Model

The coincident geological data sets provide sufficient information to now compile a revised geological model for the enlarged Anomaly B prospect area. This model dictates the need for future exploration and drilling programs to focus on the newly defined Target Zone which corresponds with a broad zone on either side of the geological contact between the Tinombo Formation and the Malala Porphyry. The dip of this target zone is interpreted to be steep, with drill holes M37 and M38 indicating a steep south-western dip to the Northern Limb. The total strike length of this Target Zone is currently in excess of 4km and possibly up to 300m true width.

Importantly, this model indicates the majority of drilling conducted at Anomaly B to date has been ineffective at testing this highly prospective zone, thus there remains significant potential to expand the Company's Exploration Target on the Northern Limb, with further upgrades likely upon preliminary testing of the Southern Limb.

During 2010, it is proposed to undertake a detailed drilling program to prove up the Company's initial Exploration Target* on the Northern Limb. Following this will be aggressive drill testing of the remainder of the Target Zone, including the Southern Limb, which could result in a significant increase in the Company's Exploration Target*.

In addition, this geological model will now be applied to the balance of the Company's 20,000Ha of concessions in the district, with the geological contact between the Tinombo Formation and the Malala Porphyry becoming the focus of detailed investigation. The Company currently has geological teams undertaking mapping and soil, rock and stream sediment sampling within the Promistis concession where it appears a new hard-rock molybdenum discovery is imminent.

* Notes on Exploration Targets

In accordance with Clause 18 of the JORC Code, it is important to note that no JORC Mineral Resources or Ore Reserves have been established on these tenements and any current assessment remains subject to ongoing exploration work and drilling. The current interpretation remains preliminary and is based on exploration, evaluation and resource definition work performed by previous owners Rio Tinto and Santos.

For the complete Victory West Moly announcement including Figures, please click the link below:

Contact

Robert Hyndes Chief Executive Officer TEL: +61-8-9381-5819 FAX: +61-8-9388-3701 Victory West Moly Limited www.victorywestmoly.com.au