Magnetic Resources NL (ASX:MAU) Announce An 80% Increase In Landholding Over Iron Targets To 4,750 Km2

Perth, Jan 22, 2010 AEST (ABN Newswire) - Magnetic Resources NL (ASX:MAU) has significantly expanded its search for iron ore close to existing infrastructure in the south west of Western Australia. Magnetic recently announced additional tenement applications, tripling its landholding in the Jubuk area near Corrigin, following the success of an aeromagnetic survey in identifying iron ore targets in an area of poor existing aeromagnetic coverage (ASX release 13 January 2010).

Magnetic has carried out a review of other areas in the south west where the geology appears to be favourable (i.e. potential greenstone sequences and banded iron formations in high grade metamorphic terrane) and where existing wide-spaced aeromagnetics (1,600m) indicate iron ore potential close to good infrastructure.

As a result, Magnetic has applied for exploration licences over numerous potential iron ore targets, including mapped occurrences of banded iron formation, increasing its total ground holding for iron to some 4,750km2. A total of ten banded iron formation occurrences have been identified on the new tenements so far, mostly in the Dalwallinu area.

It should be noted that projects recently acquired are located in areas in the southwest and heading towards the Midwest iron ore province. It is expected that a range of geological and weathering environments will be encountered so these projects will be assessed for both their magnetite and hematite potential. Note that the new northern tenement applications are close to railway lines which open up potential for the company to use additional port facilities to the north of Perth.

Magnetic is currently obtaining quotes to fly high resolution aeromagnetic and radiometric surveys over these broad target areas in order to identify specific targets for follow up sampling and drilling. Magnetic's objective is to continue to seek to identify iron ore that can readily be upgraded to a quality product in areas of good infrastructure and close to ports, thereby enhancing the potential to commercialise any discoveries.

Contact

George Sakalidis Managing Director Tel: +61-8-9226-1777 Mob: +61-411-640-337 Email: george@magres.com.au Roger Thomson Technical Director Tel: +61-8-9226-1777 Mob: +61-419-969-183 Email roger@magres.com.au