High Grade Arganara Phase 3 Drill Results • Results for the final 52 holes received • 35.4% phosphate (P2O5) intersected in hole ARC606 • Resource Calculation Underway NuPower is pleased to announce that the final batch of assay results from Phase 3 extension and infill drilling at Arganara Prospect has been received from the labs. The results continue to confirm the consistent nature of the phosphate mineralisation between the drill lines from the 2011 Phase 1 program. NuPower’s, Managing Director, Andrew Johnstone commented “This final batch of results includes our highest Phosphate intersection to date of 35.4% P2O5, The final assays enable Nupower to now complete resource calculations which should result in a maiden JORC resource for the Arganara Prospect.” Nupower has received lab analyses for the final 52 holes of its 249 hole Phase 3 program. The results complete the infill of the Phase 1 drilling from 2011, and adds infill into areas of the extension results released on the 3 rd of July 2012. 29 holes were not lab tested as field XRF analysis indicated phosphate grades below 4%. Highlights from the final batch of the Phase 3 drill assay results are:- ARC606: 6m @ 24.3% P2O5 from 17m including 1m @ 35.4% P2O5 ARC596: 10m @ 22.4% P2O5 from 12m including 1m @ 25.4% P2O5 ARC599: 6m @ 21.5% P2O5 from 15m including 1m @ 28.9% P2O5 ARC603: 4m @ 24.5% P2O5 from 28m including 1m @ 27.9% P2O5 The purpose of the Phase 3 drill program is to establish a maiden JORC Mineral Resource for the Arganara Prospect by extending and infilling the 2011 Phase 1 and 2 drill programs. Integration of the Phase 3 results into the preliminary resource model, already completed using the data from the Phase 1 and 2 drill programs, will enable swift estimation of a maiden JORC resource over the coming weeks.Rock Phosphate Phosphate Rock or Rock Phosphate is a sedimentary rock which contains high amounts of phosphate bearing minerals, usually calcium phosphate (apatite). The Phosphate is typically reported as a percentage of phosphorus pentoxide (P2O5). Phosphate Rock or Rock Phosphate typically contains 10 to 20% phosphate (P2O5), Normal sedimentary rocks usually contain less than 0.2% phosphate (P2O5). Deposits which contain phosphate in grades which are economic to mine are not particularly common. The two main sources for phosphate are: guano, formed from bird droppings; and rocks containing concentrations of the calcium phosphate mineral apatite, either sedimentary or igneous. The largest use of phosphate is in the production of fertilisers for food production. The majority of Australia’s phosphate reserves lie within the sedimentary Georgina Basin located in northwest Queensland and northeast Northern Territory. All NuPower’s Phosphate projects are located in the Georgina Basin in the Northern Territory. For Fertiliser, phosphate rock or its concentrates preferably need to have phosphate levels of 30% (P2O5). Worldwide, the resources of high-grade ore are declining, and the beneficiation of lower grade ores by washing, flotation and calcining is becoming more widespread. Phosphate is the key ingredient in: Superphosphate, Triple Superphosphate (TSP), Monoammonium Phosphate (MAP) and Diammonium Phosphate (DAP) Fertilisers. Global consumption of rock phosphate continues to increase from demand for fertiliser production. According to the May 2011 forecast of the IFA Agriculture Committee, global fertiliser demand is projected to expend at an average annual rate of 2.4%, from 2010 to 2015. Current world prices for rock phosphate have remained stable around US$180 to US$200 per tonne (FOB) during 2012. Currently the world's largest producers of Rock Phosphate are China, America and Morocco. Growth in the global Rock Phosphates market is expected to stem largely from growing populations and increased food requirements in the Asia-Pacific, Latin America, and the Middle Eastern Regions.
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