Mithril Resources Limited: New Zinc Project

Adelaide - Mithril Resources Ltd. (ASX:MTH) is pleased to advise that it has successfully applied for a new 100% - owned Exploration Licence (E04/2497 - "Billy Hills Project") adjoining the Pillara Zinc Mine, 25 kms southeast of Fitzroy Crossing in the West Kimberley region of Western Australia (see Figure 1 in the link below).

- New 100% - owned tenement application called "Billy Hills" adjoining the Pillara Zinc Mine (pre-mine resource of 18.05 million tonnes at 7.7% Zn and 2.4% Pb). (see the Note below)

- Billy Hills covers interpreted southern extension to key faults that control the Pillara mineralisation in an area of relatively limited historic exploration activities.

- Strengthens the Company's project portfolio which includes the Murchison Project where Mithril is focussed on advancing the high-grade Kombi and Fenceline Gold Prospects

At Pillara, zinc-lead mineralisation occurs within a series of fault breccia zones that cut a sequence of Devonian limestones and had a reported pre-mine resource of 18.05 million tonnes at 7.7% Zn and 2.4% Pb (see the Note below) and produced 10.3 Mt @ 6.9% Zn, 2.3% Pb from June 1997 to October 2003 (see the Note below). Mining briefly resumed during 2007 / 2008 and the mine is now on care and maintenance.

Mithril's new Billy Hills Project covers the interpreted southern extension to the key faults that control the Pillara mineralisation within an area of relatively limited historic exploration activities (see Figure 2 in the link below).

The bulk of historic diamond drilling and geophysical testing has taken place further to the north around the Pillara mine and its extensions.

Mithril will now commence a data compilation, review and target generation exercise at Billy Hills ahead of the tenement's grant which is expected within the next 12 months.

The new Billy Hills Zinc Project strengthens the Company's existing exploration portfolio which includes the Murchison Project where Mithril is focussed on advancing the high-grade Kombi and Fenceline Gold Prospects.

Note:

Refer to Western Metals Limited 1999 Annual Exploration Report (WAMEX Report No. A60289) and the website - http://www.abnnewswire.net/lnk/9XB7H58L

To view tables and figures, please visit:
http://abnnewswire.net/lnk/2F3XUHAR

About Mithril Resources Limited:

Mithril Resources Ltd. (ASX:MTH) is an Australian resources company whose objective is the creation of shareholder wealth through the discovery and development of mineral deposits.

The Company is actively exploring throughout two highly prospective areas of the Western Australian Goldfields, namely the Kalgoorlie District for gold and nickel deposits and the Meekatharra District for copper-nickel deposits.

The Company is also exploring South Australia’s far western Coompana Province for magmatic nickel – copper deposits with OZ Minerals Ltd..



Contact:

Mithril Resources Ltd.
David Hutton Managing Director
E: admin@mithrilresources.com.au
T: +61-8-8132-8800
F: +61-8-8132-8899
www.mithrilresources.com.au