Here you go:20 July 2007 ASX Announcement NICKEL EXPLORATION...

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20 July 2007

ASX Announcement
NICKEL EXPLORATION UPDATE Impressive drilling results ahead of revised resource estimates Australian Mines (ASX: AUZ) is pleased to announce significant exploration
success from the Marriott's nickel project and the Blair nickel mine operation
in Western Australia.

MARRIOTT'S NICKEL PROJECT:
Resource definition surface diamond drilling at the Marriott's nickel project,
65 km from Leinster is progressing steadily. Samples from 25 holes of the
29 hole programme have now been dispatched to the laboratory.

Results from 5 of the diamond holes have been returned. The assay results
from the latest 2 holes not previously released indicate very promising
higher grade nickel mineralisation than the initial Inferred Resource grade of
1.4% Ni:
· AMMD 021: 10m @ 1.29% Ni from 97m downhole. and 7m @ 2.10% Ni from 116m downhole
· AMMD 022: 15m @ 2.18% Ni from 125m downhole
(including 3m @ 3.89%Ni and 3m @ 4.34%Ni)
Australian Mines' Chief Operating Officer, Mr Brett Young said, "The length
and grade of the reported intercepts at Marriott's are very encouraging and
highlights the higher grade potential of the deposit below 100m. The
company is planning to complete a feasibility study once all the drill results
have been modelled.

"Given the recent assay results, we anticipate increasing Marriott's resource
base above its current estimate of 550,000t at 1.4% Ni for 7,700 tonnes
contained nickel and upgrade a proportion to Indicated status.

"A revised resource estimate is anticipated to be announced within the
September quarter."

BLAIR DEEPS:
The company has also received significant assay results for the deep drilling
at Blair Nickel mine which targeted the main CO1 and EO3 shoots up to 100
metres below the current workings.

C01C Shoot: A diamond hole targeting C01C shoot at the 300m RL (100 metres below
the current workings) has returned the following high grade down hole
intercepts: · AMUG 254: 5.3m @ 5.65% Ni from 326 m RL 10.5m @ 3.89 % Ni from 310 m Rl
(includes 6.9m @ 5.17% Ni)
Although these results are not true widths, they support the high grade and
continuous ore trend seen in previously reported holes.

E03C Shoot: Current drill hole AMUG238 targeting E03C shoot at 300mRL has
intersected approximately 5.6 metres of mixed massive and matrix
mineralisation from 313 to 307mRL (100 metres below the current E03C
workings). Assay results are awaited.

L03C Shoot: Diamond holes have also intersected the L03C shoot with encouraging
downhole intersections:
Results include; · AMUG 253 : 6.2m @ 5.10% Ni from 380m RL · AMUG 230 : 3.8m @ 3.20% Ni from 370m RL
These results are exciting as they may indicate an upgrading of the L03
Shoot at depth.

N03C Shoot: Diamond holes have also intersected the N03C shoot with encouraging
downhole intersections:
Results include; · AMUG 253 : 3.3m @ 2.42% Ni from 380m RL · AMUG 230 : 3.0m @ 1.92% Ni from 370m RL
"We are very excited about the continuity of the Blair nickel mine shoots at
depth and the potential to extend the mine life well into the future. Decline
development to access these resources with our capital mobile fleet is
continuing unabated," Mr Young added.

For further information contact:
Brett Young
Chief Operating Officer
Australian Mines Limited
Tel: 08 9481 5811 For media enquiries contact:
Robert Williams
Farrington National
Tel: 02 9332 4448

The information in this report that relates to Exploration Results and Mineral Resources
is based on information compiled by Mr E Poole who is a Fellow of The Australasian
Institute of Mining and Metallurgy. Mr Poole is employed by Australian Mines Limited.
Mr Poole has sufficient experience which is relevant to the style of mineralisation and
type of deposits under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2004 Edition of the `Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves.'