jorc estimates, page-3

Website: www.resmin.com.au
7th April 2006
The Company Announcements Office
Australian Stock Exchange Limited
4 Floor 20 Bridge Street
SYDNEY NSW 2000


ARGYLE IRON ORE PROJECT:
HAEMATITE RESOURCE ESTIMATE.

Resource Mining Corporation Ltd (Code: RMI) is pleased to announce the JORC
compliant Inferred Resource estimate for the Haematite ore at the Argyle Iron Ore
Project.

17 million tonnes grading 55% Fe, 14.9% SiO2, 2.8% Al2O3, 0.02% P

Resource Mining Corporation Limited has completed a resource estimate for the
Argyle Iron Ore Project, in Northern Western Australia. The deposit is hosted by a
haematite-magnetite-quartz sandstone of the Mesoproterozoic Carr Boyd Group.

The Resource Estimate is based on all drill hole assay data as of 14th February 2006
and covers a total strike length of 3.4 km.

The Resource Estimate has been prepared
in compliance with the requirements of the Australian Code for the reporting of
Exploration Results, Mineral Resources and Ore Reserves (The JORC code, 2004
Edition).
Classification of the estimate as an Inferred Resource was completed by Resource
Mining Corporation Limited geologists based on drill hole spacing, assay data, and
geological confidence criteria.

Under the JORC system only resources at either Indicated or Measured category can
be considered for conversion to Mineral Reserves. RMC is confident that following a
diamond drilling program planned for June 2006, which will increase the confidence
of the In situ dry bulk density estimation, the majority of the resource will be upgraded
to Measured Resource allowing RMC to establish a Mineral Reserve for the Argyle
Iron Ore Project.

Based on the mineralogical and physical composition of the ore body, it is estimated
that a variety of saleable products can be produced.

These include:

• lump and fines from the mining of the high grade material,
• beneficiated lump and fines from simple crushing and wet trommel
screening of medium grade ore
• heavy aggregate for pipe coating.

The ore body has significant variations in the geology and litho-geochemistry, with
numerous narrow clay horizons, (10cm to 50cm), running throughout. By utilising wet
based trommel screening, it is envisaged that removal of the soft clays from the ore
can be readily achieved providing a beneficiated product comparable in grade to
products from crushing and screening of the higher grade ore.

Test work to
determine the beneficiation characteristics of the various ore types will be carried out
during 2006.

Representative Cross Section of the Haematite Resource
This diagram shows a typical cross section of the deposit with the high grade
haematite overlaying the lower grade ore. Potential development would begin with
the mining and removal of the high grade ore, giving access to the lower haematite
below for later mining and simple beneficiation prior to shipment.

Mineral Resource Statement

The Resource Estimate has been prepared in accordance with the Australian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The
JORC Code, 2004 Edition).

The classification of the Resource as Inferred is
considered appropriate on the basis of drill hole spacing, sample interval, and
geological interpretation.

Assumptions and Methodology

This mineral resource estimate is based on a number of factors and assumptions:

• The assay data used is derived from a drilling program conducted by
Resource Mining Corporation Limited in 2005, comprising 11,300m of reverse
circulation percussion drilling in a total of 560 holes based on a 100 x 20m grid
pattern. Two diamond holes for 31m were also used in the estimate.
• A high precision differential GPS method was used in survey control for drill
collar positions.
• Drill samples were assayed at Ultra Trace in Perth, Western Australia.
• In situ dry bulk density of 3.5 (t/m3) was assigned to the block model. This was
estimated as the representative density from the density of each of 42 surface
samples and 17 diamond core samples.
• A geological block model was constructed by Resource Mining Corporation’s
geologist. The model was constructed using Micromine software.
• Grade interpolation by Inverse Distance Squared (ID2).
• A 50% Fe cut-off was used in the estimate.

Pre-feasibility Study

The Company will commence a pre-feasibility study aimed at determining the
optimum mining and treatment methods for the Argyle Iron Ore resources.
W J Davies
Executive Director
Information in this report relating to ore reserves, mineral resources or mineralisation conforms with the reporting
requirements of the “Australian Institute of Mining and Metallurgy’s Code for reporting of Identified Mineral
Resources and Ore Reserves” and is based on and accurately reflects information compiled by Richard
Schroeder who is a competent Person as defined by the CODE and is a Member of the AUSIMM. Richard
Schroeder has consented to the release of the information dealing with these matters in the form in which it is
reported.

Cheers markco2