a potash play as well, page-2

Interesting to see the market reaction to STB's 'review of potash potential' at Lake Disappointment (market announcement today) - stock up 78% (from 14c to 25c).

Update on Potash Project at Lake
Disappointment East

South Boulder Mines is pleased to announce that it
has commenced a review of the potash potential at its
100% owned Lake Disappointment East Project.

The project comprises a single exploration licence
application (E45/3122a) covering approximately
572km² over the same lacustrine system which
contains Reward Minerals Ltd’s JORC compliant
potash resource of 8,635Mt @ 3.17kg/t for 27.37Mt
K2SO4. The licence is immediately east of and adjacent
to Reward’s Project area.

The prospectivity of this area has been enhanced by
recent significant strengthening in fertiliser
commodity prices and South Boulder intends to
expedite the grant of this licence with a view to
commencing on-ground work as quickly as possible.

The Lake Disappointment East Project (see diagram attached below) is located in the
Gibson Desert in Western Australia, approximately 400km from Newman. Low
rainfall and high precipitation have resulted in evaporate salt deposits in the area.

The Project area contains two key target lacustrine systems covering in excess of
80km² of prospective drainage.

Potash prices are expected to reach record highs in 2008 driven by increasing
populations placing demand on food supplies, as well as new demand from the biofuels
industry.

In addition infrastructure advancements by Reward in the area would significantly
enhance the project economics of any discovery.

Potash is a generic term for potassium salts with its primary use as an ingredient in
agricultural fertilisers. There is no known substitute for potassium as a plant nutrient.

World consumption is currently in excess of 50M tonnes per annum and demand is
expected to outstrip supply over the next 5-10 years.

Upon grant of the licence South Boulder intends to commence exploration efforts to
determine the potential for the project to contain an economic potash resource.