significant test results

SIGNIFICANT METALURGICAL TEST RESULTS
The Directors of Sherlock Bay Nickel Corporation Limited (SBNC) advise that the
results of independent metallurgical test work carried out as part of the Bankable
Feasibility Study (BFS) have provided a materially higher recovery rate than had been
estimated in initial scoping work that has previously been released to the market.
At this time two sets of metallurgical tests using the Bio Leach method have been
completed with a third proprietary leaching test in the final stages. The results of the
two completed tests have given a very significant 88% Ni recovery rate together with,
what the company considers, a relatively short leaching time of 37 days. The
directors consider this to be an outstanding result, as potential increases in recovery
have a significant result on project economics.
In the context of the scoping study this result is well ahead of the recovery rates that
were used. A recovery rate of 75% Ni was used in the scoping study.
SBNC still has further test work in progress and further results will be announced as
they come to hand. While using a different bacterial technology, at this time SBNC
has no cause to believe that these results will vary materially adversely to those
obtained to date.
The full BFS is scheduled for completion by the end of the March quarter with a full
market update to be provided at that time on the project.
Regards
AL (Boris) Gerick
Managing Director