Pit Modeling Shows Potential for 100+ Year Mining & Low Strip Ratio at Speewah Vanadium-Titanium Project

ANNOUNCEMENT 10 May 2011

PRELIMINARY PIT MODELING OF CENTRAL VANADIUM-TITANIUM DEPOSIT

Speewah Metals Limited (“Speewah” or “the Company”) (ASX: SPM) is pleased to report the results from some preliminary pit modelling completed by Runge Limited (“Runge”) to ascertain the footprint for a possible start-up vanadium-titanium operation based on mining the high grade zone of the Central Vanadium Deposit at Speewah (Figure 1). This modelling estimated the pit volumes, tonnages and strip ratios for two scenarios to produce approximately 50 million tonnes (Mt) of high grade material from the Central deposit. It also provided some additional information for the delineation of a Mining Lease to be secured after further studies are completed.

The preliminary pit designs were modeled using the block model used for the Central deposit resource estimate. The two mining scenarios examined included mining along the outcrop line in the western edge of the deposit and mining the parts of the deposit along the western edge that had the thickest high grade zone. Details of the modeling for these two scenarios are provided in Attachment 1.

Both preliminary pit designs modeled produced similar strip ratios of approximately 0.5: 1 waste rock to ore. This low strip ratio is due to the outcropping nature of the deposit in the west and its flat (4°) dip to the east, with waste material constituting the overlying lower grade material above the high grade basal layer (Figure 2).

The shape and number of pits varied for each mining scenario modeled. Option I examined mining along the western outcrop in one large elongated pit and a smaller pit to the south. This pit design produced the lowest strip ratio of 0.43 and also delivered more Measured and Indicated material based on current drilling. Option 2 mined the thickest and highest grade portions of the basal high grade zone along the western outcropping edge of the deposit, in order to maximize the grade of the potential mined material. This identified the three high grade portions of the Central deposit as shown by the three pits along the western margin of the deposit. The strip ratio was slightly higher at 0.59.

HIGHLIGHTS • Preliminary modeling for 50 million tonnes initial start-up pit at Central Vanadium-Titanium

deposit shows potential for a long life mining operation at Speewah;

• Pit strip ratio for the initial pit is approximately 0.5:1 waste rock to ore;

• Flat Central deposit geometry means pit can be readily extended eastward to deliver multiples of initial modelled tonnage;

• Similar modelling of the Buckman and Red Hill deposits would deliver significant tonnage and mine life extensions.

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DIRECTOR’S COMMENTARY

The Board is very pleased to be able to provide a visual demonstration of the size of the Speewah Vanadium-Titanium deposits and the potential for long life operations.

Flat dipping geometry of the large Central deposit means the preliminary pit could be readily extended eastward to deliver multiples of initial modelled tonnage. Similarly, modelling of the Buckman and Red Hill deposits would deliver significant tonnage and mine life extensions.

Significantly, the modeling of a 50 million tonne pit approximates the design requirements for a 4 million tonnes per annum mining operation sufficient to support a potential 10 year operation producing 7,000 tonnes per annum ferrovanadium (using mass recoveries of Speewah concentrate and assuming pyro-metallurgical recoveries of other similar vanadium-in-magnetite projects).

It is important to note that as the initial pit modeling represents less than 10% of the Central deposit, the combined deposits of Central, Buckman and Red Hill would likely support a mine life of greater than 100 years.

The estimated low strip ratio’s for an initial pit is an important input into the future feasibility studies for the development of a mine.

R Wolanski DIRECTOR

-------------------------------------------------------------------------------------------------------------------------------------------------------------- Competent Persons Statement Mr Ken Rogers, Member of the Australian Institute of Geoscientists, Chief Geologist of Speewah Metals Limited, compiled the technical aspects of this report relating to the Speewah Project and content of this release. Mr Rogers has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being reported on to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code). Mr Rogers consents to the inclusion in the report of the matters in the form and context in which it appears.

FOR FURTHER INFORMATION, PLEASE CONTACT: Speewah Metals Limited Level 22 Allendale Square 77 St Georges Terrace Perth WA 6000 Richard Wolanski – Executive Director Anthony Barton – Non Executive Chairman

Telephone: +61 8 9221 8055 Fax: +61 8 9325 8088

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Figure 1: Location of Vanadium Mineral Resources at Speewah

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Figure 2. Central Deposit Preliminary Pit Design – Top View Layout Option 1. Major grid lines at 1000m.

Central Deposit

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Attachment 1 Preliminary Pit Design for 50Mt

Runge Limited (Runge) was contracted by Speewah Metals Limited (SPM) to provide preliminary pit designs to produce 50 million tonnes of high grade material from the Central Vanadium Deposit. The modelling was completed using the existing resource block model for the deposit. The scope of works for the preliminary pit design were: • Provide conceptual pit design of 50Mt ore plant feed in size • The preliminary pit design limits to be constrained by the lowest strip ratio & cut off 0.18% Vanadium • No pit optimisation was conducted for this exercise as the financial data is not available at this stage • The output of this process is a CAD string file of the pit design & the associated mining inventory in a spreadsheet

The methodology employed was: • Determine pit limit using margin ranking analysis • Determine the resource area of the whole deposit • Subdivide the resource area in to a series of smaller blocks • Implement margin ranking in Xpac to enable an interactive analysis of spatial and tonnage data in the same time • Block size: 100x100m with 90 degree wall • Mining inventory calculation and pit design conducted in Vulcan

The input data was: • Overall pit slope 70 degrees • Mining recovery = 100% & dilution =0% • Expected pit size = 50Mt of Ore • Cutoff %V = 0.18 & thickness = 2.5m • Geological block model : sp_ctr_ok_20100224.mdl (created in Surpac February 2010) • Topography data : central_topo.dtm • All mineralisation types (HG & LG) to be mined

Results for the two cases reviewed:

50Mt Mining Blocks Selected

Option 1 – Mining Along the Outcrop line Option 2 – Mining the Thickest Mineralisation Area

Central Deposit Central

Deposit

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Pit Design – Top View layout

Option 1 Option 2

Pit Design - Mining Inventory

Option 1

Option 2

Central Deposit

Central Deposit

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SPEEWAH BACKGROUND Speewah Metals Limited (“Speewah”) is a mining and exploration company whose prime focus is the definition and development of its vanadium/titanium and copper/gold/silver discoveries in the East Kimberly region of Western Australia. The tenements contain Australia’s largest vanadium-in-magnetite deposit with combined Measured, Indicated and Inferred Resources totaling 3,566 Mt at 0.30% (at 0.23% V2O5 cut-off grade) in three deposits, comprising a Measured Resource of 201 Mt at 0.33% V2O5, Indicated Resource of 826 Mt at 0.30% V2O5 and an Inferred Resource of 2,539 Mt at 0.3% V2O5.

Various studies are currently being completed on the vanadium deposits, including a focus on metallurgical testwork, tenure, access and environmental issues. The purpose of these studies is to attract capital to fund bankable feasibility studies, development or sale of the vanadium project. The 2011 strategy has three value-add components. Two of these are related to the 2011 Exploration programme and will be the largest exploration programme in the history of the company. These value-add components include:

1. Significantly increase to what is Australia’s and one of the world's largest vanadium/titanium in magnetite resource, through drilling an exploration target* of an additional 2-5 Billion tonnes @ 0.3-0.32% V205 and 1.8-2.0% Ti;

2. Continue exploration based on promising results of Copper/Gold/Silver and Lead mineralisation. This will include a maiden airborne EM survey conducted on the tenements that will target potentially highly conductive Cu/Au mineralisation against non-conductive background rock. This is expected to target copper/gold mineralisation identified both the vertical and horizontal dimensions.

3. Metallurgical work on the vanadium/titanium resource and investigate the potential to recover titanium and iron in addition to vanadium which may have the potential to multiply project values.

The tenements also contain a high-grade, high-quality fluorite deposit with Indicated and Inferred Resources totaling 6.7 Mt at 24.6% (at 10% CaF2 cut-off grade), comprising an Indicated Resource of 4.1 Mt at 25.3% CaF2 and an Inferred Resource of 2.6 Mt at 23.6% CaF2.

Speewah Metals Limited has a 100% interest in three granted Mining Leases (M80/267, M80/268 and M80/269) and two granted exploration licenses (E80/2863 and E80/3657) and one exploration license application (ELA80/4468), covering 575 km2 located about 110 km southwest of Kununurra. * Exploration Target is not a mineral resource and further drilling is required which may not define these tonnes & grade. The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if future exploration will result in the determination of a mineral resource.)

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