Ann: FLTEM Defines Midrim High Priority Drill Target, page-2

Investment HighlightsFollowing VTEM™ Max conducted in February that defined one particularly strong discrete new anomaly1, Rafaella Resources engaged Geophysique TMC to conduct a fixed loop time domain electromagnetic (“FLTEM” survey to accurately determine the target for drill testing.The FLTEM survey was competed at the end of May with the data now assessed by Southern Geoscience Consultants Pty Ltd.A drill target for the anomaly has been determined and Rafaella Resources is assessing timing for an initial drill campaign.Managing Director Steven Turner said: “The FLTEM survey has confirmed and delineated the VTEM anomaly and the Company is now assessing options to commence a drill campaign focused on the new drill targets. We are looking forward to progressing this exciting new prospect and determining whether this deeper target representsa larger nickel, copper and PGE mineralisation source supporting the high grades already encountered at the shallower depths.”Rafaella Resources Limited (ASX:RFR) (“Rafaella” or “the Company”is pleased to announce that Geophysique TMC (“Geophysique” has completed the FLTEM survey. Furthermore, all data generated from the survey has now been provided and analysed by Southern Geoscience Consultants Pty Ltd (“SGC”. The primary objective of the VTEM™ Max survey conducted in February was to detect potentially blind/deep level bedrock conductors associated with Ni-Cu-PGE mineralisation. In March, the Company announced that the Midrim VTEM™ Max surveying had defined one very strong discrete new anomaly and three clusters of moderate anomalies not previously identified.SGC has defined the VC1 conductor as having approximately 50m width and 175-200m depth extent with moderate conductance of 500S, steep NW dip/plunge, commencing at a shallow depth of around 25m. SGC has proposed a drill test with a target depth of 75-100m. The conductance levels of this new target are stronger than the known, high grade Midrim and Laforce nickel-copper-PGE sulphide deposits within the Company’s tenement package, giving this new anomaly priority drilling status especially giventhe current price strength in nickel, copper, platinum and palladium.