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announcement COMPASS RESOURCES NL
ABN 51 010 536 820
20 June 2006

completion of Acquisition of Nangali Gold Project - Peru

Compass Resources NL ("Compass") and coventurer Indo Mines Ltd. ("Indo" - formerly
AKD Limited) have agreed to expedite purchase of the highly prospective Nangali
epithermal gold project in Peru, from a Newmont subsidiary.
Compass and Indo will pay Minera LJB Normandy Peru (now NGF Ltd) US$150,000
on execution of the revised agreement terms (previously US$200,000) and will pay a
1.5% NSR production royalty (previously 2%). The revised agreement is expected to be
signed by 30 June 2006.
Compass (70%) and Indo (30%) are responsible for their proportionate share of the
payment and royalty.
Exploration completed by Newmont includes geological mapping, drainage and
rockchip geochemical sampling and dipole-dipole IP traverses. This work has
identified a zone of low sulphidation epithermal quartz-carbonate veins with
anomalous gold (1.0 to 98.7 ppm) and silver (1.0 to 814 ppm), which has a
discontinuous strike extent of approximately 2 kilometres. No drilling has been
undertaken, but drill sites have been identified and prepared by Newmont.
The election of Alan Garcia as President of Peru provides a more encouraging signal
for continued growth of the Peru mining industry. Completion of this revised
agreement enables exploration planning to commence for a drill programme to test the
high grade Nangali gold vein system against an improved political and social
background.

For further information contact:
Philip Cohen
Phone: 02 9417 3588
Fax: 02 9417 8750
Email: [email protected]
Level 5, 384 Eastern Valley Way
Roseville NSW 2069
Telephone: 02 9417 3588
Facsimile: 02 9417 8750
email: [email protected]
website: www.compassnl.com.au