RGM.L Regulatory News (RGM)

REGENCY MINES PLC

("Regency" or the "Company")

Update on Direct Nickel Limited ("DNi") - Pilot Plant advances towards Stage 1 commissioning

20 December 2012

Regency Mines plc, a mining exploration and mineral investment company with interests in nickel and other minerals in Australia, Africa, and Papua New Guinea is pleased to announce an update on progress at Direct Nickel Limited ("DNi"), a company in which Regency is a shareholder and its joint venture partner in a nickel-cobalt laterite project ("Mambare Project") in Oro Province, Papua New Guinea.

Details of the progress at DNi are given in a Shareholder Update released on the DNi website, http://www.directnickel.com/shareholders-update/ yesterday. Statements in that update have not been independently verified by Regency. 

The update states that the 200 tonne Indonesian nickel ore bulk sample has arrived in Australia, ensuring that Stage 1 commissioning of the pilot plant for the Direct Nickel Process is on track for a January start.

DNi's Technical Program Process Engineer, Dr Fiona McCarthy, said "While we have been able to take advantage of the delays with delivery of the sample from Indonesia by working through the pre commissioning activities we are really pleased the feed for the plant has arrived in Australia. With the operating team being assembled this week for familiarisation and training the momentum is building well for a start to the programme in the New Year."

The announcement by DNi of the arrival of the bulk sample in Australia can be read here: http://www.directnickel.com/indonesian-sample-arrives-in-australia-stage-1-commissioning-on-track-for-january-start/

Regency Chairman Andrew Bell reports: "The arrival of the bulk reference sample means that piloting of the Direct Nickel Process can formally begin. This is a key step forward. The advancement of the pilot plant's operations holds significance for us both as DNi's partners in this technology at our Mambare project, and as shareholders in DNi itself."

 Note: DNi is a public company incorporated in Australia. It is currently demonstrating a potentially revolutionary process with attractive economics for treating laterite nickel ores (the "Direct Nickel Process" or the "Process").

The Direct Nickel Process is a hydrometallurgical process for the treatment of nickel laterites with unprecedented efficiency and environmental benefits. It is designed to operate with tank leaching at atmospheric pressure, and is the first to treat both limonite and saprolite ores with a single flowsheet. The Process recycles its novel reagents, offers high cobalt and nickel recoveries with short residence time, produces mixed hydroxide precipitates ("MHP") or sulphide concentrate, has substantially lower capital and operating costs than competing processes and is fully scalable.

Updates on the Company's activities are regularly posted on its website, www.regency-mines.com