Additional Copper Intersected At Anglo Australian Resources NL (ASX:AAR) Koongie Copper Zinc Project

Perth, July 23, 2010 AEST (ABN Newswire) - In July Anglo Australian Resources NL (ASX:AAR) (PINK:AAURF) completed an extensive drilling program, consisting of 3109m of RC and 1403.8m of diamond drilling, at the Company's Koongie copper zinc project located 25km south-west of Halls Creek in the Kimberley region of Western Australia.

The program was designed to enhance the potential for economic development of the Koongie Project and to advance the pre-feasibility work currently in progress by:

- Targeting relatively shallow high grade supergene copper resource extensions at the Sandiego Deposit
- Targeting high grade copper sulphide depth extensions at Sandiego

- Testing potential strike extensions of near surface zinc sulphide mineralisation at the Atlantis Prospect

- Drilling for geotechnical purposes

Results for the RC component of the drilling program, targeting shallow high grade supergene copper mineralisation at Sandiego, have now been received, compiled and are discussed in this report. The diamond drilling component of the program for deeper diamond drilling was completed mid July. Diamond holes have now been geologically logged and most mineralised intervals have been cut and submitted to the Genalysis Laboratory in Perth for analysis. Assays from the diamond drilling are expected towards the end of August.

Supergene Copper Extensions at the Sandiego Deposit

As previously reported in May and June 2010 the Company has confirmed a sub- horizontal zone of chalcocite-rich supergene copper capping the Sandiego Deposit, extending over 200 metres of strike, situated 80-100m below surface. This zone, which is interpreted to be approximately 30 - 40m wide, is confined by footwall shales and hanging wall volcanics.

Previous drilling of this zone has returned higher grade intersections such as 22m @ 9.91% Cu (SRCD03); 25m @ 11.4% Cu (SRCD31); 8.8m @ 9.1% Cu (SRCD30) and 11.7m @ 4.04% Cu (DDH24).

In June the company announced an intersection in SRC061 of 71m @ 5.04%Cu, 7.69% Zn, 68 g/t Ag and 0.43 g/t Au which contained a high grade chalcocite cap of 15m @ 9.4% Cu, 214 g/t Ag and 0.19 g/t Au. The potential for a significant increase to the copper resource, close to surface, is further enhanced with new intersections such as:

- 33m @ 3.7% Cu, 128g/t Ag, 2.02g/t Au and 13m @ 1.73% Cu (SRC076)

- 9m @ 2.1 % Cu, 3.3% Zn, 135g/t Ag, 0.18g/t Au, 0.21% Co (SRC060)

- 25m of supergene sulphides (chalcocite and pyrite) in diamond hole SRCD059 (still to be assayed).

The intersection within SRC076 includes a supergene intersection of 19m @ 5.9% Cu, 1.1% Pb, 219g/t Ag, 1.79g/t Au. Gold and silver values appear to be enhanced in this part of the deposit. True width of supergene intersections is approximately 80% of actual width.

Strike extensions of the supergene copper mineralisation, to the north, have been confirmed with new intersections albeit at less spectacular grades:

- 14m @ 1.2% Cu (SRC065)

- 10m @ 1.2% Cu, 13g/tAg (SRC066)

- 13m @ 1.1% Cu, 30g/t Ag, 0.17g/t Ag (SRC077)

These and some of the other intersections are outside the current resource envelope.

The discovery of the zone of supergene copper enrichment has led to the reassessment of previous drilling within this zone. Examination of this core by a hand held XRF suggests that at least two historical cored holes, stored at our Halls Creek facility, have not been assayed over the full zone of mineralisation. These holes have now been cut and samples submitted for assay.

Zinc Lode Extensions at the Sandiego Deposit

In addition to the copper intersections a number of zinc and lead lodes were intersected within the transition (or partially weathered) zone at higher levels than previous drilling.

These include:

- 19m @ 5.5% Zn 40g/t Ag (SRC060)

- 13m @ 2.2%Pb, 6.6% Zn, 59g/t Ag, 0.26g/t Au (SRC060)

- 38m @ 4.4% Cu, 3.4% Pb, 13.1% Zn, 80g/t Ag, 0.64g/t Au (SRC061)

- 6m @ 0.2%Cu, 8.9% Zn, 29g/t Ag (SRC062)

- 7m @ 0.5% Cu, 13.0% Pb, 21g/t Ag, 0.17g/t Au (SRC066)

- 14m of semi-massive sphalerite in diamond hole SRCD059 (still to be assayed).

True intersection widths for the zinc lode intersections are 40-50% of down hole widths.

Sulphide Copper Extensions at the Sandiego Deposit

Sulphide copper mineralisation intensity and copper grades appears to be higher on the northern end of the Sandiego deposit (1120N) as indicated by previous intersections such as 24m @ 7.96% Cu in SRCD04. As deeper drilling in this part of the deposit was sparse four additional diamond holes were drilled in this area. Geological logging and visual estimation of grades has provided encouragement for additional copper resources.

SRCD063 (section 1120N) intersected mineralisation earlier than expected in the precollar.

This mineralisation which assayed 2.7m @ 2.7% Cu, 6g/t Ag, 0.23g/t Au (from 291m) was followed by 10.1m of massive sphalerite and chalcopyrite. Two additional mineralised zones were intersected including 17.2m of disseminated and semi-massive sphalerite and chalcopyrite (from 303.6m) and 5.5m of semi massive sphalerite.

SRCD064 (section 1120N) drilled on the same section and 100m below SRCD063, intersected 34m of massive chalcopyrite, sphalerite and pyrite from 393.6m. Visual examination of the core suggests moderate to high grade copper mineralisation.

SRCD078 (section 1120N) intersected 9.4m of massive chalcopyrite and minor sphalerite from 539m and 16m of disseminated chalcopyrite and sphalerite. This intersection is located 150m below SRCD064 and 450m below surface.

SRCD032 (section 1160N) intersected 41m of disseminated sphalerite, pyrite and chalcopyrite from 245m down hole.

On completion of geological modeling and receipt and compilation of all assay data the resource will be re-estimated with an expectation of increased total copper content.

Other Drilling

Seven diamond holes were drilled along the path of the proposed decline. These and other holes will be assessed for geotechnical purposes by specialist geotechnical contractor Dempers and Seymour.

For the complete Anglo Australian Resources announcement including location figures and drilling summary tables, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/63371-ASX-AAR-498471.pdf

Contact

Angus C. Pilmer Executive Director Peter Komyshan General Manager Exploration Telephone: +61-8-9382-8822