Nice update.....by Friday we've got to have a positive stream on...

Nice update.....by Friday we've got to have a positive stream on the SP....very important....

FOUR MILE URANIUM DISCOVERY UPDATE

Highlights

�� A drilling program at Four Mile West to cross-check earlier results has been completed. The resulting data are being assessed;

�� Drilling has commenced at Four Mile East, and is expected to continue for several months; and

�� Quasar’s 2007 budget at Four Mile and surrounds is approximately A$14 million.

Details of Announcement

The Directors of Alliance Resources Limited (“Alliance”) (ASX Code: AGS) are pleased to announce an exploration update provided by joint venture partner and operator Quasar Resources Pty Ltd (“Quasar”) at the Arkaroola Project in South Australia.

Four Mile West

Drilling

Eighteen (18) holes were completed at Four Mile West during February 2007 for a total of 3,107m. The program was designed to reconcile the calibration of the various gamma ray and the prompt fission neutron (PFN) tools used in previous drilling. A detailed note on the Four Mile Discovery and the calibration is provided in Appendix 1.
The resulting data are currently being assessed for finalisation of the resource estimate.
Soil Survey
A soil survey across Four Mile has commenced. Approximately 400 samples will be collected along four traverses and submitted for multi-element analysis at the completion of the program.
Monitor Wells/Water Bores
Three (3) of the four (4) monitor wells completed at Four Mile West have been set up with pumps and data loggers.

The monitor wells have been set up to test the hydrology and specifically to test the water quality, water depth and flow rates. Water samples have also been sent off to be analysed for chemistry at ANSTO.

Four Mile East

A drilling program of approximately 200 holes has commenced with two rigs at Four Mile East. The program will provide detailed data across mineralisation and interpreted structures on a 200m X 100m grid. This will encompass an area of approximately 3.75 km2, including small areas of 100m X 100m drilling to better delineate previously defined higher grade zone of mineralisation.