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Discovery Metals Limited (ASX:DML) AIM RELEASE 1 September 2008 Boseto Copper Project Bankable Feasibility Study Progress Report Ø Appointment of Resource Consultant and Engineering Partner Ø Acceptance of Terms of Reference for EIA Discovery Metals (ASX,BSE; DML: AIM; DME) has made key appointments of groups who will assist in completing the Bankable Feasibility Study (BFS) for the Boseto Copper Project (Project) and has received the terms of reference for the completion of the Environmental Impact Assessment for the Project. The appointments of the Resource Consultant and Engineering Partner follow a competitive tender process with submissions received from a field of international companies. The successful companies are: Resource & Mining Consultant: Internationally recognised Snowden Mining Industry Consultants (Snowden) has been appointed to undertake Resource Modelling, Geotechnical and Mining Engineering components for the Project. Snowden is very familiar with the Boseto Copper Project, having completed the initial resource modelling work and provided the independent review of the Project's Pre Feasibility Study. Engineering Partner: GRD Minproc has been engaged to undertake the engineering package for the BFS. GRD Minproc has extensive and relevant experience in the design and construction of similar-sized copper plants, as well as recent experience in copper feasibility studies. They have relevant development experience in Sub-Saharan Africa. Both GRD Minproc and Snowden will support the BFS through staff based in both Australia and Southern Africa. The appointment of both firms continues Discovery Metals approach to appointing high calibre groups to augment the fast tracking of the development of the Boseto Copper Project. Environmental Impact Study Terms Of Reference: The Environmental Impact Assessment (EIA) for the Boseto Copper Project commenced in the first half of 2008. As part of the process, Discovery Metals was required to formally agree a Terms of Reference with the Botswana Department of Environmental affairs. This step has now been completed. The EIA is being progressed by a team of consultants from Botswana and South Africa under the direction of SRK Consultants. Discovery Metals' Managing Director, Brad Sampson said "I am confident that the groups who will support us in completing the BFS will deliver outcomes that are robust and optimised. Our strategy of partnering with highly experienced industry professionals should give shareholders great confidence in the quality of the BFS outcomes. Agreement on the Terms of Reference for the EIA is also a significant step. We are on track to complete the EIA at the end of 2008 - well ahead of this becoming a critical path item in the completion of the BFS." "The BFS will be completed in mid 2009 and is a key step in Discovery Metal's goal to produce and sell copper concentrate to the world market from early 2011." Mr Sampson added "At the same time, we are continuing infill drilling of the existing deposits and anticipate further expansion of the Boseto Copper Project resource base." Background: The Boseto Copper Project, located in north west Botswana (Figure 1) currently has a total mineral resource of 49.1Mt @1.2% Cu (Figure 2). It is anticipated that further drilling being undertaken will result in an increase in this resource base. The Pre Feasibility Study for the Project was completed in July 2008 and demonstrated that the Project had an economically-viable base case, with significant upside potential. In July 2008, the Board of Discovery Metals approved the commencement of the Bankable Feasibility Study (BFS) for the Project, targeting first copper concentrate production in early 2011. A 2Mtpa operation is currently envisaged to produce 23,500 tonnes of copper and 780,000 oz of silver annually. The BFS, scheduled for completion mid 2009, will include: § mineral resource and reserve evaluation (in compliance with the guidelines of the JORC code) on three of the Boseto Copper Project's resources prospects - Zeta, Plutus and Petra; § mine design , pit optimisation and production scheduling; § process plant design and associated infrastructure studies; § BFS study level capital and operating cost estimate; § marketing and concentrate off take agreements and; § financial evaluation & modelling based on the results of the BFS. Notes to Editors Discovery Metals Limited was formed as Discovery Nickel Limited in May 2003, changing its name in 2006. Discovery Metals is focused on developing its Boseto Copper Project in north western Botswana. The company aims to create shareholder wealth through discovery and development of economic mineral deposits. The company's major assets are the Boseto Copper Project in North West Botswana and the Dikoloti Nickel Project in north east Botswana. The tenement package consists of 14 prospecting licences covering an area of 12,100 km² within the Kalahari Copper Belt. The Boseto Copper Project is situated within a large area of significant copper-silver mineralisation, which potentially occurs over hundreds of strike kilometres. There are three smaller Australian projects, two of which are joint ventured, with joint venture partners potentially earning in a 51 percent equity. The information in this report as it relates to the Plutus and Petra Mineral Resources for the Boseto Copper Project was compiled by Mr Stefan Mujdrica and Mr Jason Hosken, who are Members of The Australasian Institute of Mining and Metallurgy. Mr Mujdrica and Mr Hosken are full time employees of Snowden Mining Industry Consultants. Mr Mujdrica has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which 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". The information in this report as it relates to the Zeta Mineral Resources for the Boseto Copper Project was compiled by Mr Ferdinando Camisani, who is an Honorary Life Fellow of The South African Institute of Mining and Metallurgy, a recognised overseas professional organisation. Mr Camisani is an Associate of A&B Global Mining. Mr Camisani has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which 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". Mr Mujdrica and Mr Camisani consent to the inclusion in the report of the matters based on information provided by them and in the form and context in which it appears. Information on the company is available on its website: www.discoverymetals.com.au +-------------------------------------------------------------------+ | For further information on this release and Discovery Metals | | generally, please contact: | | Brad Sampson Managing Director | | Ph: +61 7 3218 0200 Mob: +61 438 771 037 | | brad@discoverymetals.com.au | | Nominated Advisor - RFC Corporate Finance Limited, Contact Rob | | Adamson Ph: +61 2 9250 0000 | | AIM Broker - Fox-Davies Capital, Contact Richard Hail Ph: +44 20 | | 7936 5200 | | Australian PR - BBS, Contact Gerard Reilly Ph +61 (7) 3221 6711 | | Email greilly@bbspr.com.au | | UK PR- Conduit PR, Contact Jane Stacey/Jos Simson Ph +44 (0)20 | | 7429 6606/ +44(0)79 2292 3306 | +-------------------------------------------------------------------+ NOTE: For further information contact Brad Sampson Managing Director Tel: +617 3218 0200 Mobile: 0438 771 037 Email: brad@discoverymetals.com.au Rob Adamson RFC Corporate Finance Ltd (Nomad) Tel: +612 9250 0000 Email: Rob.Adamson@rfc.com.au Richard Hail Fox-Davies Capital Ltd (AIM Broker) Telephone: +44(0) 20 7936 5200 Email: Richard.Hail@fdcap.com Further information on the Company is available on its website: www.discoverymetals.com.au ---END OF MESSAGE--- LINK: http://hugin.info/137928/R/1247617/270266.pdf Discovery Metals Limited ISIN: AU000000DML9 Stock Identifier: AIMX.DME
