australias highest grade vanadium deposit

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27 January 2009 GABANINTHA VANADIUM PROJECT

The directors of Yellow Rock Resources Limited (ASX Code: YRR) are pleased to announce the increase and upgrade in the Mineral Resource for the exciting and unique Gabanintha Vanadium Iron Titanium Project in Western Australia. The completed Resource Statement report on the vanadium iron titanium deposit at the Gabanintha Project defines it as the Australia’s highest grade massive magnetite hosted vanadium deposit. The main points of the report are:

1. An increase in the total Mineral Resource to 151.5 million tonnes from 90 million tonnes (being an increase of 68%) to 100m depth.
2. The total contained Vanadium metal has increased by 30%.
3. The total high grade Resource is now 70 million tonnes at 0.87% V2O5.
4. The identification of shallow scree Resource of 12 million tonnes at 0.43% V2O5 and low grade hanging wall resource of 70 million tonnes at 0.39% V2O5.
5. The Vanadium Mineral Resource is also rich in Iron and Titanium.

The Company now has a better understanding of the Gabanintha Project enabling it to consider all opportunities for advancing the project to a commercial outcome. The work covered by the report included the latest drilling programme carried out to infill previous drill holes and the re-assaying of prior samples to confirm and estimate the newly defined lower grade hanging wall material. The Resource has been modelled to show areas of complex structure that have a lower Resource category. These areas will require further drilling at a later date. The report was prepared by Schwann Consulting, as principal consultant and Mining Assets Pty Ltd for the computer modelling, of the Mineral Resource from that report is contained in the Resource Table below.

The Gabanintha deposit is unique as it contains a “Windimurra” style hanging wall ore zone AND a “Balla Balla” style foot wall zone. This unique ore type stacking would allow the exploitation of a low grade feed to an onsite ferro vanadium plant similar to that at Windimurra as well as the direct shipping of a lump or fine Balla Balla style iron rich feedstock on the single site.

The above figure shows the unique Gabanintha deposit with a suggested development giving flexibility in ore types mined. This will allow the company to tailor the development to suit market requirements and customer demands, as well as allowing low capital start up options. The company will undertake a further programme of reverse circulation and diamond drilling to upgrade some areas of the lower resource classification and to explore down dip to achieve both metallurgical samples and a down dip extension of Inferred and Indicated Mineral Resources. The new drilling will confirm mineralisation types and grades to the current depth of 100 metres and will also test the depth of the ore body to 300 metres to include both high grade magnetite ilmenite vanadium as well as the lower grade hanging wall resource.