Clarification of Announcement on 6 May 2008On 6 May 2008, South...

Clarification of Announcement on 6 May 2008

On 6 May 2008, South Boulder Mines Ltd (ASX: STB) announced the signing of an Access Agreement with the Traditional Land Owners (the Martu People) of the area in which the Lake Disappointment East Potash Project is located.

The announcement stated that the Lake Disappointment East Potash Project consists of a single exploration licence application. It further stated that the signing of the Access Agreement “removes any impediments to the grant of the Project”.

By way of clarification, South Boulder confirms that the signing of the Access Agreement allows the exploration license application to proceed with the DoIR and paves the way to grant of the license. When the exploration licence is granted, South Boulder will need to undertake site specific archaeological and Aboriginal heritage surveys in areas of proposed exploration activity on the exploration licence in consultation with the Martu People before work can commence. If additional exploration activity is planned this will also require heritage clearance from the Traditional Owners. Furthermore if the exploration project develops towards a possible mining scenario, then additional agreements will need to be negotiated between South Boulder and the Traditional Owners in respect of those plans.