Ferret's Stock to Watch: NOVA ENERGY LIMITED09:40, Friday, 31...

Ferret's Stock to Watch: NOVA ENERGY LIMITED
09:40, Friday, 31 March 2006

YET ANOTHER URANIUM EXPLORER BECOMES PART OF BOOM

Sydney - Friday - March 31: (RWE Aust Business News)
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OVERVIEW
********

Ferret joined traders in picking the uranium explorers due to
take off in the market this week.

It is reminiscent of the nickel boom with stocks fired up for big
rises day after day.

Tuesday saw Toro Energy, which had already excelled itself
since the beginning of the year, more than quadrupling its price since
listing.

Nova Energy Ltd (NEL) hasn't been left behind in the rush, and
climbed to a record high yesterday.

Both of these stocks reflect market speculation in the midst of
a new metals boom centred on uranium discoveries unlike traders have
witnessed since the 1960s.

Ironically, base and precious metals are posting record highs at
the same time as China buys as much raw materials was we can produce.

China is now lining up to buy uranium while India still has
to persuade the Australian government that it will only use it for
peaceful purposes because it has not signed the non-proliferation
agreement.

Nova Energy yesterday had the good fortune to make a presentation
of its exploration progress and prospects at the uranium conference in
South Australia, called Paydirt's 2006 uranium conference.
Chairman Dr Tim Sugden was not backward in singing the company's praises.

"Nova owns a high-value, readily developed project but the WA
State Government will not currently allow uranium mining because "it was
election campaign policy," he said.

"This makes no sense. The financial, community and environmental
benefits are clear."

Focused on uranium exploration and development in Australia
and overseas, Nova holds one of Australia's most advanced and readily
developed uranium deposits.

However, value realisation is partly dependent on WA policy
on uranium mining, drilling Olympic Dam-type targets in South Australia
in 2006 and acquiring ground in Africa.

With the company in the spotlight, the shares surged higher
again yesterday, with traders pushing the share price to a record $1.92.

Investors lucky enough to obtain some of Nova Energy shares,
issued at 40c, have seen a meteoric rise since the beginning of the year
when they stood at 59c on January 6.

SHARE PRICE MOVEMENTS
*********************

Shares of Nova Energy yesterday rose 23c to $1.83 after
roaring ahead 50c since March 23. Rolling high has been $1.92 and low
35c. The company has 15.6 million shares on issue with a market cap of
$21.8 million.

Following the incorporation of additional drilling data,
Nova Energy has reported a revised JORC-compliant Inferred Mineral
Resource of 15.5 million tonnes at 0.06pc U3O8 for 9,000 contained
tonnes of U3O8 at its Lake Way and Centipede uranium deposits in central
Western Australia.

The estimates are based on a considerable volume of historical
drilling and assay data that have been fully validated, following QAQC
procedure, and incorporated into new digital databases.

Surpac software was used to construct wire frames and block
grades were calculated by ordinary kriging.

There is good potential to further increase resources at both
Lake Way and Centipede due to exclusion of zones with incomplete
information relating to earlier drill programs, gaps in previous
drilling patterns and untested extensions in the local area.

In the December half-year report directors said the company
has compiled the database of drilling and metallurgical information on
its Lake Way and Centipede uranium tenements.

This information was analysed to calculate a JORC compliant
resource of 8,400 tonnes of U3O8 at a grade of 0.06pc.

New exploration leases were applied for in Western Australia
and the Northern Territory, targeting uranium mineralisation.

On August 12 the company issued 32.5 million shares to
Agincourt Resources in accordance with the rights and usage agreement,
for the acquisition of the uranium rights over the Centipede tenements
and certain rights to infrastructure at the Wiluna gold mine.

Results of operations showed a loss after tax of $172,000 for the
half-year (2004: profit of nil).

Nova Energy's majority shareholder, Agincourt Resources Ltd,
disclosed that Dr Sugden elected to stand aside as managing director in
order to focus on the development of Nova Energy.

The boards of both companies are pleased that Dr Sugden will use
his extensive experience in exploration, uranium mining, project
development and company management to grow Nova Energy into a significant
uranium exploration and production company.

The immediate goals of Nova Energy are to:

* Complete a JORC-compliant resource for the Lake Way and
Centipede uranium deposits.

* Expedite a scoping study (with GRD Minproc) of the Lake Way and
Centipede deposits.

* Commence exploration programmes on the company's extensive
ground holdings in Western Australia, South Australia and the Northern
Territory.

* Investigate overseas exploration and development opportunities.

BACKGROUND
**********

Nova Energy was incorporated on October 29, 2004 as a public
company, primarily as a joint initiative between Argonaut Capital and
Agincourt, to explore, evaluate and exploit the Centipede and Lake Way
uranium deposits and surrounding exploration tenements in the Wiluna
region of Western Australia (Wiluna Uranium Assets).

Another key objective of Nova Energy was, and continues to be,
the identification and acquisition of other Australian and global
uranium opportunities to enhance and complement the quality of assets of
its identified portfolio.

Centipede is a significant surficial deposit that lies 16
kilometres diagonally southwest from the Lake Way deposit.

Although many similarities exist between the Wiluna Uranium
Assets the principal difference between these is that the Centipede
mineralisation is predominately hosted by calcrete (over 80 per cent),
whereas Lake Way mineralisation is relatively evenly distributed between
calcrete, carbonated silty clay and carbonates basal sand ore types.

ENDS