Anglo Australian Resources NL (ASX:AAR) Resource Estimations Completed At The Koongie Project With Improved Copper Grades

Perth, Nov 1, 2010 AEST (ABN Newswire) - Anglo Australian Resources NL (ASX:AAR) (PINK:AAURF) is pleased to report the JORC compliant Mineral Resource Inventory for its 100% owned Sandiego copper - zinc deposit.

Background

In July Anglo Australian Resources NL completed 3109m of RC and 1403.8m of diamond drilling at the Company's wholly owned Koongie Project located 25km south-west of Halls Creek in the Kimberley region of Western Australia. The program targeted supergene and sulphide copper mineralisation at the Sandiego Deposit.

Results for the RC component of the drilling program were announced to the ASX on 23 July 2010. The highlight was an intersection of 71m @ 5.04%Cu, 7.69% Zn, 68 g/t Ag and 0.43 g/t Au in SRC061, which contained an interval of 15m @ 9.4% Cu, 214 g/t Ag and 0.19 g/t Au corresponding to a zone of supergene enrichment. Results from the diamond drilling component were announced on 24th August 2010 and highlighted high grade sulphide intersections such as 14.5m @ 7.3% Cu, 10g/t Ag, 0.8g/t Au and 7.45m @ 4.2% Cu, 10g/t Ag, 0.56g/t Au from hole SRCD064.

On completion of interpretation and compilation of the latest drilling data Coffey Mining Pty Ltd were commissioned to re-evaluate the resource model and complete new resource estimations for the Sandiego Deposit.

The Resource

The Sandiego deposit is a steeply plunging tabular mineralised zone that has been drilled on 20 to 40m sections over a strike length of 200m to a depth of 500m, and remains open at depth. Vertical spacing of mineralised intersections varies from 40m at shallow depths up to 120m within deeper parts of the deposit. The deposit consists of distinctly separate zinc and copper rich zones. The recent work has defined a sub horizontal high grade copper supergene cap which overlies the copper and zinc sulphide lodes.

The resource estimation was based on mineralisation envelopes interpreted by Peter Komyshan of Anglo Australian Resources NL. Copper mineralisation was constrained within wireframe surfaces based on a nominal lower cut-off grade of 0.4% copper over 1.5m. Zinc mineralisation was constrained within wireframe surfaces based on a nominal lower cut-off grade and 1% zinc over 2m. Coffey Mining used Ordinary Kriging as the resource estimation methodology.

Total Indicated and Inferred Resources are 2mt @ 2.8% Cu, 1.8% Zn, 0.39g/t Au and 18g/t Ag for the copper lode and 1.57mt @ 6.8% Zn, 0.2% Cu, 0.16g/t Au, 22g/t Ag for the zinc lode.

The full resource statement produced by Coffey Mining Pty Ltd is attached as a separate document. This resource statement refers only to the Sandiego Deposit. Previously the Company has announced resource estimates of 2.5mt @ 1.1%Cu, 21g/t Ag 0.3g/t Au from the Onedin copper zone; 1.3mt @5.4% Zn 25g/t Ag 0.25g/t Au from the Onedin zinc zone and 0.65mt @ 8% Zn, 1.1% Cu 1.4% Pb 47g/t Ag, 0.37g/t Au for the Copper Zinc zone.

The Onedin Deposit is located 7km north east of the Sandiego Deposit.

A conservative interpretation and estimation procedure at Sandiego has resulted in an increase in copper grades, lower overall tonnes and a greater proportion of the resource attributed to the Inferred category as compared to earlier estimates.

The resource appears to be more robust than previous estimates with better grade continuity observed within resource blocks. The high grade supergene chalcocite dominant cap relatively near to surface has also provided encouragement to examine the potential development of the deposit via an open pit. All previous economic assessments of the Sandiego deposit involved only underground development. Optimisation studies have now commenced. As previously announced to the ASX on 10th September Nigel Spicer of Minesure has been commissioned to undertake this scoping study.

Future Activity

Should open pit mining prove to have economic potential, future drilling to commence at the end of the wet season, will focus on better definition of the supergene and oxide copper mineralisation. Silver and gold mineralisation within the oxide zone (e.g. 5m @ 8.13g/t Au in SRCD10), outside current resource envelopes will also require better definition.

As previously announced to the ASX in the Sept 2010 Quarterly Report, potential to expand the Sandiego copper resource exists via a newly discovered copper lode north east of the current resource. Drilling will be planned in this area subsequent to interpretation of down hole EM (currently in progress).

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

http://www.abnnewswire.net/media/en/docs/64065-ASX-AAR-513385.pdf

Contact

Angus C. Pilmer Executive Director Anglo Australian Resources Tel: +61-8-9382-8822 Peter Komyshan General Manager Exploration Anglo Australian Resources Tel: +61-8-9382-8822