Equatorial Resources Limited (ASX:EQX) 22km Of New Strike Potential Identified At Badondo Iron Project

Perth, Jan 28, 2011 AEST (ABN Newswire) - Equatorial Resources Limited (ASX:EQX) ("Equatorial" or "the Company") is pleased to advise that preliminary interpretation of data from the airborne geophysical survey completed during December 2010 at its Badondo Iron Project ("Badondo") has identified magnetic anomalies with a combined strike length in excess of 22km. The identified anomalies have the potential to host significant quantities of hematite and itabirite hosted iron mineralisation. Badondo is located in the North of the Republic of Congo ("ROC") among a cluster of very large iron projects including Sundance Resource Ltd's (ASX:SDL) Mbalam and Nabeba projects, CMEC's Belinga asset, and Core Mining's Avima iron project.

Mr John Welborn, Managing Director and CEO, said "We are extremely encouraged by the initial results of the airborne survey and rock chip assays from Badondo. In addition to our 100% owned Mayoko- Moussondji Iron Project the identified prospects at Badondo represent a second opportunity to define a globally significant iron deposit. Infrastructure solutions are being developed in the region and we are excited about the generation of a further exploration target and commencing a drilling program during 2011."

BADONDO IRON PROJECT ("BADONDO")

Badondo is located within a regional cluster of large-scale iron ore exploration projects in the north-west region of the ROC including:

- Avima (Core Mining/Severstal): Immediately North

- Belinga (CMEC): Immediately South

- Nabeba (Sundance Resources): 80km north-east

- Mbalam (Sundance Resources): 100km north-east

Work completed by BRGM in 2007 confirmed a ridge line of outcropping iron ore mineralization more than 7km long and also identified the possibility of a second zone of iron mineralization, oriented parallel to the main ridge.

TWO PROSPECTS IDENTIFIED WITH SIGNIFICANT POTENTIAL

In December 2010, a comprehensive airborne magnetic and radiometric survey was completed over Badondo in the Department of Sangha in the north-west ROC, close the border of Gabon.

The survey was carried out by Fugro Airborne Surveys and covered the Company's entire 998km2 project area for a total of approximately 6,000 line kilometres at 200m line spacing.

The Badondo survey follows the Company's successful airborne geophysics program completed in July 2010 at the Company's 100% owned Mayoko-Moussondji Iron Ore Project ("Mayoko-Moussondji") located in the south west of the ROC. This survey resulted in the identification of more than 47km of potential strike and the recent announcement of an estimated global exploration target at Mayoko-Moussondji of between 2.3 and 3.9 billion tonnes1 of iron mineralisation at a grade of 30% to 65% Fe (refer ASX release dated 30 November 2010).

Initial results received by the Company from Badondo have identified the following target areas:

- The Badondo Prospect: This target zone consists of two separate anomalies that extend over 9km of strike length. This zone was originally identified on the ground by BRGM in 2007.

- The Belinga North Prospect: A new target zone extending over a strike length of some 13km.

BRGM ROCK CHIP ASSAYS

During a reconaissance field visit in 2007, geologists from BRGM collected 9 rock chip samples from visually identified outcrops. The samples were not analysed at the time and have since been in storage at BRGM's head office in Orleans, France.

Equatorial has engaged BRGM to add to their existing report from 2007 and analyse the 9 samples collected. The 9 samples were sent to OMAC Laboratories Ltd in Galway (Ireland) for geochemical analysis of major elements by ZRF analysis and trace elements by ICP-OES analysis.

The assay results confirm the presence of both hematite rich iron mineralisation with grades as high as 64.7% Fe and magnetite rich itaberite mineralisation with grades ranging from 38.9% Fe to 45.4% Fe.

DETAILED INTERPRETATION AND EXPLORATION TARGET

Receipt of the rock chip assay results and related petrography, magnetic susceptibility, and specific gravity data will enable the detailed interpretation of the airborne geophysical data to be finalised. The Company is expecting to receive the detailed interpretation in February. The interpretation will include 2D and 3D modelling of the data and is expected to generate an exploration target for Badondo. Equatorial has commenced planning a field campaign at Badondo and based on the exploration target a maiden drilling campaign will be programed during 2011.

For the complete Equatorial Resources Limited announcement including figures and table, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/65094-ASX-EQX-526143.pdf

Contact

John Welborn Managing Director & CEO Tel: +61-8-9322-6322 Email: info@equatorialresources.com.au http://www.equatorialresources.com.au