Acceleration of WIM150 Project Evaluation: 

Australian Zircon plans to proceed to the next stage of the WIM150 zircon and titanium mineral project which is located near Horsham in the southern Murray Basin. This work will be based on "breakthrough" results which the Company achieved over the last 2 years with its mineral processing testwork on the finegrained WIM150 mineralisation, and will be aimed at bringing the WIM150 Project to a favourable Bankable Feasibility Study conclusion.

Australian Zircon test work in 2004-06 used new generation mineral concentration equipment to achieve acceptable recoveries of WIM150 heavy minerals into an 86% heavy mineral concentrate. In further test work the Company used up-to-date mineral separation equipment to achieve potentially acceptable recoveries of zircon "product" separated from the titanium and trash minerals contained in the WIM150 heavy mineral concentrate. The Company is entitled to earn an 80% equity interest by completing a Bankable Feasibility Study for development of the project.

Provided that followup work is able to confirm and build on the results obtained in 2004-06, Australian Zircon is confident that the large resources defined at WIM150 will support a world class zircon and titanium mineral development.

All of this work is expected to add significantly to shareholder value as the Company realises its aim to become a world class supplier of zircon and associated titanium minerals.