 Issue of report by Polysius on Shevchenko nickel ore milling, drying, and calcining
 Ore amenability to nickel upgrades of up to 20% were observed during the drying process
 Successful pre-treatment of 35 tonne bulk ore sample at the Polysius testing facility in Germany
 Better than expected results for drying and calcining of the Shevchenko ore
 Proven suitability of the previously selected fines ore based flash drying and calcining process flowsheet

Oriel Resources plc is pleased to announce receipt of the “Report on nickel ore drying, grinding and preheating” by Polysius. The report covers the pre-treatment of the 35 tonne bulk sample of Schevchenko nickel ore that was sent to the Thyssen Krupp Polysius Technologies testing facility in Beckum Germany.

Technical director Nick Barcza said, 'the results support the operating parameters used in the Pre Feasibility Study and give us confidence that the Shevchenko ferronickel project is on track technically and economically."

The testwork assessed, amongst other factors, the co-processing of 10% dolomite as a flux, and the amenability of the ore to upgrading. These upgrading results were very encouraging with up to a 20% increase in nickel content at over 90% nickel recovery by removal of the coarse fraction during the flash drying stage. Polysius report that some variability in the upgrade was observed and further testwork during the DFS will define the overall upgradeability of the ore.

The primary test objective was to demonstrate that Shevchenko ore could be dried and calcined to a loss on ignition (LOI) of less than 2%. This was successfully achieved with values of well below 2% and even less than 1% at 900°C.

This LOI level and pre-heat temperature confirmed a secondary test objective that the type of equipment used, a flash drier and suspension calciner, is suitable for the proposed fines ore based process flowsheet. Much of the Shevchenko ore is fine and the test results indicate that an improved efficiency and operating performance of the DC Arc furnace can be expected.

Additional testwork observations included data on the milling characteristics of the Shevchenko ore, which will assist in the selection, during the Definitive Feasibility Study (DFS) period, of a mill suitable for this ore. A follow-up test to confirm the selection of the optimum mill using the same 450 tonne nickel ore sample to be used for the demonstration scale smelting testwork is planned for early 2005.


The Chairman and CEO, Sergey V Kurzin said, "I am very encouraged by these results. This report marks another milestone following successful smelting testwork in South Africa and confirms that the project is on track. Furthermore, the positive ore upgrading should ensure better than previously expected calcined nickel ore grades into the DC Arc furnace which will enhance the project economics.”

For further information, or to download the entire press release, please visit
our website at www.orielresources.com or contact:

Sergey V Kurzin
svkurzin@orielresources.com
or
Stephen R Dattels
sdattels@orielresources.com

18 Upper Brook Street
London W1K 7PU England
Telephone +44 (0) 20 7514 0590
Facsimile +44 (0) 20 7514 0591