Transit Holdings Limited (ASX:TRH) Receives State Approval For Drilling At The Paradox Basin Potash Project In Utah

Perth, June 7, 2011 AEST (ABN Newswire) - Following the 6th June 2011 announcement on Transit Holdings Limited's (ASX:TRH) move to 90% ownership of its operating subsidiary K2O Utah LLC, Transit Holdings ("Transit" or the "Company") is pleased to announce that the company has received approval from the state of Utah for drilling and further exploration on the Paradox Basin Potash Project ("Project") in Utah within two months of filing.

The joint venture is currently preparing the programme and budget for an initial drill campaign that will include the drilling of 4 exploratory wells on the State lease locations as part of the Project's Pre- Feasibility Study.

Now that approvals and the bonding have been accepted the Company can finalise selection of drilling contractor and plan to begin drilling in July/August 2011. Mr Kermit Allen , an engineer and solution mining veteran of over 40 years experience who inter alia oversaw the design and construction of US Strategic Petroleum reserve capacity in salt domes through solution mining, will supervise this drilling program. After the four holes are drilled and results analysed the Company expects to have a JORC compliant statement of resources.

Work will now begin on approvals to drill on federal land to further delineate the resource.

An exploration target of 2.3 billion tonnes of sylvinite potash ore at 32.8%KCl has been delineated within the Project.

The planned drill campaign follows a positive Scoping Study on the Project. Transit and its joint venture partner completed the Scoping Study on the Project based on 2 million tonnes per annum production of KCl from solution mining of the potash deposit.

The Scoping Study demonstrated that the Project has robust financials and the Company is proceeding to a Pre-Feasibility Study which will include drilling of fresh exploratory wells to augment a database of historical drilling.

About the Project

Transit has earned 90% of the Paradox Basin Potash Project ("the Project").

The Project covers applications for 386km2 of highly prospective potash permits in the Paradox Basin in south eastern Utah. The company's focus is on sylvinite, a high grade form of potash ore that is cheaper and more effective to process to a saleable form than any other form of potash ore.

The Paradox Basin Potash Project is located close to the key agricultural regions of the United States and as such is ideally situated to supply fertiliser manufacturers and agricultural cooperatives in the western and south-western United States. The Project also has substantial export potential given its excellent proximity to key US rail infrastructure leading to West Coast ports.

An exploration target of 2.3 billion tonnes of sylvinite potash ore at 32.8% KCl content (20.7% K2O) has been delineated within the Project by independent consultants Agapito Associates Inc. Transit and its joint venture partner have recently completed a Scoping Study on the Project based on 2 million tonnes per annum production of KCl from solution mining of the potash deposit.

The Scoping Study demonstrated that the Project has robust financials and the Company is proceeding immediately to a Pre-Feasibility Study which will include drilling of fresh exploratory wells to augment a database of historical drilling. The identification of substantial subterranean aquifers and opportunities to capture seasonal snowmelt provides confidence in the availability of water for the project, to add to an impressive suite of infrastructure in the region.

The Exploration Target assumes a grade-thickness cutoff of 20% K2O per metre (grade by thickness), below which mineralisation is excluded from the estimate. The Exploration Target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource, and it is uncertain if further exploration will result in the determination of a Mineral Resource under the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code (2004).

The Exploration Target is not being reported as part of any Mineral Resource or Ore Reserve.

Contact

Richard Monti Executive Director Transit Holdings Limited Tel: +61-8-9482-0515 Email: info@transitholdings.com.au http://www.transitholdings.com.au