6 February 2008ASX RELEASESignificant Assay Results From Carina...

6 February 2008
ASX RELEASE
Significant Assay Results From Carina Drilling
Yilgarn Iron Ore Project

Highly encouraging results from first assays at the Carina prospect within key Yilgarn Iron Ore Project – 106m at 58.7% Fe with 0.05% P and low silica and alumina

Confirmation of the exploration potential of the region for further discovery of Direct Shipping Ores outside the proposed Mt Manning A-Class Nature Reserve extension.
The Directors of Polaris Metals NL (ASX: POL) are pleased to announce the receipt of the first drill hole assays from the Carina prospect, part of the Yilgarn Iron Ore Project (YIOP), 60km north of Koolyanobbing in Western Australia.
Drill-hole CA0011 intersected 112m of hematite and goethite mineralisation including:

Reverse circulation drill hole inclined -60° - true width approximately 80% of intersection length
Collar coordinates given in the table below
LOI – loss on ignition
Reverse circulation (RC) drilling commenced at Carina in December 2007, with 12 RC holes completed for a total of 1,510m, as part of an 8,000m RC drilling program.
Drilling intersected massive hematite-goethite mineralisation over a strike length of 1,500m, true width of 80-90m, and vertical depth to 90m. The mineralisation is open along strike and at depth.
Assaying is being undertaken by ALS Laboratories in Perth and results for the remaining Carina holes are expected later this month, which will then allow additional drilling to be scheduled ahead of resource estimation. Polaris has secured the services of a Lane Drilling RC rig (in conjunction with spin-off company Southern Cross Goldfields) for the entire 2008 calendar year to undertake a continuous YIOP drill test program.
The tenor of the initial Carina drill assay results is in close agreement with the surface rock chip sampling conducted earlier in 2007, providing encouragement for other key direct shipping iron ore (DSO) exploration targets that are currently being drill tested. Drilling at YIOP recommenced in January 2008 to complete the initial 8,000m program, aimed at upgrading the 150-200Mt Target of the project to JORC-compliant Resources.
Results are expected for the Chamaeleon, Vela and Musca prospects, also part of the YIOP, in coming months.

The significance of the Carina intercept can be summarised as follows:
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The intercept confirms the potential of the YIOP region for new and significant DSO discoveries;
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The indicated grade and extent of the mineralisation are sufficiently large to potentially support a standalone DSO mining operation;
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The low contaminant levels (0.05% P) suggest Carina can be blended with other ores such as those at J4, J5 and Bungalbin East to achieve shipping-grade specifications for a higher proportion of the YIOP resource base; and
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Carina lies outside the proposed Mt Manning A-Class Nature Reserve extension and hence mining approvals should not be subject to excessive environmental delay.
Managing Director, Jonathan Lea said the results validated the Company’s confidence in the potential for a significant new discovery in the YIOP area.
“Polaris has been working towards the definition of this project for a number of months and we’re most encouraged that the first assay results appear to support what we believe could be a major new iron ore project,” he said.
“These drill results validate the multi-disciplinary exploration approach used by Polaris and are a credit to the exploration team involved. The potential for other iron ore discoveries on Polaris’ YIOP tenement holding is clearly enhanced by this Carina result.”
Mr Lea said the pattern drilling to establish JORC-compliant resources for the YIOP would run concurrently with the current Pre-Feasibility Study for the project.
“The PFS is on track for completion in mid 2008 and we look forward to further positive results from our drilling program across the many target areas.
“With good access to infrastructure and now these positive drilling results validating Target models, we are more confident than ever of bringing this project to fruition,” he said.
For and on behalf of
POLARIS METALS NL