Preliminary Leach Results

Regency Mines PLC

Preliminary Leach Results on Mambare Drill Samples

10 February 2012

Regency Mines plc ("Regency"), the mining exploration and mineral investment company with interests in nickel and other minerals in Western Australia, Queensland, Papua New Guinea and Pakistan is pleased to announce preliminary leach results from the recent drilling programme at the Mambare Nickel Laterite Project in Papua New Guinea.

Two samples were provided to the Perth laboratories of Direct Nickel to ascertain indicative leaching performance using the Direct Nickel Process.

These preliminary samples were taken from hole MAM-KK-0001 (9.00-10.00m, test 390) and hole MAM-KK-0004 (18.5-19.5m, test 387). Both of these holes are located in Area 2 (North Ridge Extension).

Results from standard leach tests are summarised in Table 1 below.

Table 1: Summary Leach Results

Test 387, based on a low Fe and moderate Mg sample from the middle of the mineralized laterite profile, gave excellent nickel and cobalt extractions of 99.1% and 98.0% from the standard DNi atmospheric leaching test which is run over 5 hours. The leach rate is very rapid with the bulk of the nickel and cobalt extracted in 1 hour. 40% of the sample reported to solution.

Test 390 was based on a high Fe, low Mg sample with high cobalt values at 0.23% from the upper limonitic portion of the mineralized laterite profile. The nickel extraction of 92.2% was again extremely rapid with the majority of the nickel leached in the first two hours. Cobalt extraction at 54.4% was significantly lower than is usual in DNi tests and if typical of the Mambare upper zone material warrants further investigation. 39% of the sample reported to solution.

Graham Brock, Chief Technical Officer for Direct Nickel said "These are pleasing results for the very first leaches conducted on samples from the 2011 exploration programme. Whilst the samples are not necessarily representative of any particular zones they provide encouraging information at this early stage.

Figure 1 Mambare 2011 Drill Program

http://www.rns-pdf.londonstockexchange.com/rns/2231X_-2012-2-10.pdf 

The information in this announcement that relates to Metallurgical Testing is based on information compiled by Graham Brock who is a Fellow of The Australasian Institute of Mining and Metallurgy. Graham Brock is a full time employee of Direct Nickel Pty Ltd and has sufficient experience that is relevant to the processes being tested and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves', and as a Qualified Person within the meaning of AIM's Note for Mining and Oil & Gas Companies of June 2009. Graham Brock has consented to the inclusion of the information in the form and context in which it appears. 

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Glossary of Elements

Al - Aluminium

Co - Cobalt

Fe - Iron

Mg - Magnesium

Ni - Nickel

Si - Silicon