jorc resource numbers out, page-2

This was the announcement released by King Island Scheelite this morning.
Great numbers with heaps more to come!!!!!

10 April 2006

King Island Scheelite Limited JORC Compliant Resource Statement
King Island Scheelite Limited (KIS) has today received a Mineral Resource estimate reported
in accordance with the JORC Code for the planned open-pit redevelopment of the King Island
Scheelite mine at Grassy, King Island, Tasmania from its consultants AMC Consultants Pty
Ltd (AMC). The resource estimate is designed to assess the resource potentially recoverable
by planned open pit mining. It comprises remnants from the previous underground operation
and other mineralised zones not mined during that operation.

The drill-hole database used for the resource assessment includes information from 593 pre-
KIS drill-holes. The core logs and assays for these have been digitised and included in a 3D
model of the deposit. Since May 2005, the company has drilled a further 39 core holes to
check and confirm key information such as mineralisation boundaries, presence of stopes and
pillars, and to recover metallurgical test samples. A further 13 holes have been drilled for
geotechnical and groundwater assessment purposes.

The drilling program has now been
completed, and the rig has left King Island.
AMC has worked closely with KIS’s geological consultant "Newnham Exploration and
Mining Services" (NEMS) to check, and to the extent possible with the pre-KIS data, verify
all of the drill-hole and assay information. AMC has developed a 3D block model of the
deposit. Blocks used are 20m in an E-W direction, 10m in a N-S direction, and 6m vertically.

AMC reports a Mineral Resource at a cut-off grade of 0.25% WO3 down to an RL of 308m
below sea level of:
Mineral Resource
Indicated: 13.2 million tonnes @ 0.64% WO3
Inferred: 0.2 million tonnes @ 0.35% WO3
Total: 13.4 million tonnes @ 0.64% WO3

These estimates have been classified and reported in accordance with the 2004 JORC Code.
While the Mineral Resources have been classified predominantly as Indicated Resources, it is
likely that a significant proportion would have been classified as Measured Resources had it
not been for uncertainty with respect to the precise location of underground workings and
therefore of remnant mineralisation, and incomplete records relating to some of the old
drilling data.

Shareholders are advised however, that not all of this material will necessarily be recoverable
from the planned open pit mine. Further work is required to finalise capital and operating
costs, mill recoveries, final pit slopes and other key parameters before an Ore Reserve can be
estimated. AMC has run preliminary Whittle Pit Optimisation studies using preliminary cost
and recovery parameters provided by the Company. These studies suggest that between 70%
and 80% of the resource tonnage may be extractable in an open pit at an overall strip ratio
around 6.5 to 1.

Because of the preliminary nature of these studies, your Board believes it appropriate to
report the full Mineral Resource to 308m below sea level until such time as the optimum open
pit shape and depth can be determined.
Finalisation of the Ore Reserves is dependent on completion of the Final Feasibility Study.
These resource numbers do not include the following:
• Mineralised material down-plunge in the main Dolphin deposit below an RL of minus
308m. The presence of well-mineralised material is known in this area from past drilling
and mining activities. However, it is not considered that this material can be recovered by
open pit mining.
• Mineralised material at the old Bold Head mine some 3km north of the King Island
Scheelite mine. Geopeko records from 1990 indicate that there are approximately 1.7 to
1.9 million tonnes of material grading approximately 0.8% to 0.9% WO3 remaining at
Bold Head1.

The company announced an earlier resource estimate for Dolphin (Investor Presentation,
December 2005, released to ASX 14/12/05). The new estimate has been taken to a lower
depth than the earlier estimate and includes additional lower grade material that lies within the
pit envelope

Shareholders will be aware from our earlier announcements that KIS expected to complete the
Final Feasibility Study by end March 2006. However, due to factors beyond our control,
primarily related to the current high levels of demand for mining expertise and test facilities,
we are not as far progressed on the FFS as we had planned to be. We now expect the Final
Feasibility Study to be completed towards the end of the June 2006 quarter.