Chromite Confirmed

Eurasia Mining PLC 12 November 2001 PRESS RELEASE EURASIA CONFIRMS HIGH GRADE CHROMITE IN THEIR RUSSIAN ALLUVIALS PROJECT AND INITIATES FEASIBILITY STUDIES First results from the processing of bulk pit samples from the Martian River on the Vissim licence area has successfully recovered high-grade chromite from the alluvial tailings. The clean concentrates produced from two tests graded 50 and52% chromium oxide which is at the higher end of the range required for the production of ferrochrome. The production of a clean saleable product is key to the success of the project. Russia is a major importer of chromite for the production of ferrochrome. The majority of ferrochrome production plants are located in the Urals within easy transport distance from the Vissim site. In addition the processing indicated an economic concentration of platinum Results from bulk pit DT 4 are: Raw concentrate Clean concentrate Grade + 25% impurities recovery 158 kg/m3 61.4% 97kg/m3 @ 52% chromium oxide 41% chromium oxide 295 mg/m3 Pt Further metallurgical recovery testing to determine the optimum processing methods for chromite and platinum recovery for an initial 30,000 cubic metre per month plant will be undertaken during the winter. Conversion of the current exploration licence to a comprehensive licence to permit mining will be required as part of the winter feasibility work. This will proceed in parallel with marketing studies. Drilling at Vissim which began in early October is targeting four specific locations along 8 kilometres of the Martian River that would be suitable for a starter operation. The 18 holes completed to date indicate a 'payzone' thickness averaging about 4.5metres but ranging up to 7 metres and widths from 200 to over 500 metres beneath a thin cover of barren cobbles. The samples confirm the presence of chromite at all locations the accurate recoverable content of which will be determined by physical processing, weighing and assaying. Recoverable platinum values are being determined at the same time. The drilling will provide data on both the volume and the platinum and chromite contents of the tailings as well as providing the samples for metallurgical testing. Alluvial operations have particularly low operating costs largely dependent on the volume treated. For this reason, alluvial operations report grades in terms of milligrammes per cubic metre of precious metals and kilogrammes per cubic metre for industrial minerals like chromite. At this stage both the volumes and the grades on the Martian River appear to be more than adequate to support a full-scale commercial operation. Based on comparable operations and the indicated simple processing route required to recover the chromite and platinum, Eurasia is targeting operating costs below US$1.50 per cubic metre. The currently indicated value per cubic metre of the recovered chromite and platinum at current product prices indicates the potential for a rapid payback even at the pilot scale. Eurasia is therefore initiating feasibility studies during which the capital, operating, marketing and environmental parameters of both the pilot plant and of a larger scale production plant with a capacity of up to 1,000,000 cubic metres per annum will be investigated. Dr Martineau, Executive Deputy Chairman, said, 'The potential for high volume, simple processing and high product quality demonstrated by our initial studies of the Vissim project alluvials are extremely encouraging. If current progress is maintained and approvals forthcoming in a timely manner we can look forward to Eurasia's first operation at this site.'