Significant assay results from Carina drilling

The Directors of Polaris Metals NL announces the receipt of the first drill hole assays from the Carina prospect, part of the Yilgarn Iron Ore Project (YIOP), 60km north of Koolyanobbing in Western Australia.

Drill-hole CA0011 intersected 112m of hematite and goethite mineralisation including:

Reverse circulation drill hole inclined -60° - true width approximately 80% of intersection length

Reverse circulation (RC) drilling commenced at Carina in December 2007, with 12 RC holes completed for a total of 1,510m, as part of an 8,000m RC drilling program.

Drilling intersected massive hematite-goethite mineralisation over a strike length of 1,500m, true width of 80-90m, and vertical depth to 90m. The mineralisation is open along strike and at depth.

Assaying is being undertaken by ALS Laboratories in Perth and results for the remaining Carina holes are expected later this month, which will then allow additional drilling to be scheduled ahead of resource estimation. Polaris has secured the services of a Lane Drilling RC rig (in conjunction with spin-off company Southern Cross Goldfields) for the entire 2008 calendar year to undertake a continuous YIOP drill test program.

The tenor of the initial Carina drill assay results is in close agreement with the surface rock chip sampling conducted earlier in 2007, providing encouragement for other key direct shipping iron ore (DSO) exploration targets that are currently being drill tested. Drilling at YIOP recommenced in January 2008 to complete the initial 8,000m program, aimed at upgrading the 150-200Mt Target of the project to JORC-compliant Resources.

Results are expected for the Chamaeleon, Vela and Musca prospects, also part of the YIOP, in coming months.

Carina lies outside the proposed Mt Manning A-Class Nature Reserve extension and hence mining approvals should not be subject to excessive environmental delay.

Managing Director, Jonathan Lea said the results validated the Company’s confidence in the potential for a significant new discovery in the YIOP area.

“Polaris has been working towards the definition of this project for a number of months and we’re most encouraged that the first assay results appear to support what we believe could be a major new iron ore project,” he said.

“These drill results validate the multi-disciplinary exploration approach used by Polaris and are a credit to the exploration team involved. The potential for other iron ore discoveries on Polaris’ YIOP tenement holding is clearly enhanced by this Carina result.”

Mr Lea said the pattern drilling to establish JORC-compliant resources for the YIOP would run concurrently with the current Pre-Feasibility Study for the project.