‘We have made excellent progress in a short space of time and will have Voskhod in production in Q3 2008; only three years from acquisition.’

Voskhod Project Overview

Oriel acquired 100% of the Voskhod chrome project in February 2005 for the equivalent of US$15.0 million in cash and the allotment of 9,181,352 Oriel shares, at the time valuing Voskhod at US$25.0 million.

The positive results of SRK Consulting (UK) Ltd’s (‘SRK’) June 2006 feasibility study confirm Oriel’s decision to fast-track development of the Voskhod project and indicate significantly higher production output and economic metrics as compared to the Preliminary Assessment Study (‘PAS’) prepared in September 2005.

Results from the SRK feasibility study are extremely encouraging with an almost 100% increase in the mine’s output from our initial studies. Heinz H Pariser Alloy Metals & Steel Market Research’s (Heinz Pariser) extremely positive market report shows growing ore demand especially in Asia which, in conjunction with our own advanced negotiations with potential off-takers, exceeded our initial expectations and this demand is significantly greater than Voskhod’s production output. This has resulted in the Company decision to increase the output of saleable chrome ore product by 80%, therefore considerably enhancing the project’s economics.

Discovered in 1963, the Voskhod chrome deposit lies within the Khromtau District of the Aktobe Region of north western Kazakhstan and lies 7 km NNE of Khromtau. It is surrounded by a group of existing and exploited mines, yet it has never been worked. A recently reconstructed tarmac road links the town of Khromtau with Aktobe 110 km to the west.

Oriel has made excellent progress in a short space of time and will have the mine in production in Q3 2008; only three years from acquisition. The development of the road, rail and power-supply infrastructure will give Oriel the security of independent and long-term production.

Oriel has been awarded an extension to the Voskhod contract licence area to include the Karaagash deposit which has Russian C2 and P1 classified resources of some 7.8 million tonnes and which has, assuming positive results of a confirmatory drilling program, the potential to provide additional resources for mining beyond a 20 year life.

Voskhod Project Funding

The Company announced in December 2006 that it had closed a US$120 million loan facility for the Voskhod chrome project with Eurasian Development Bank, UniCredit Markets & Investment Banking acting through Bayerische Hypo- und Vereinsbank AG (UniCredit Group) and WestLB AG.  These institutions have agreed to provide loan facilities totaling US$120 million for Oriel’s Voskhod Chrome Project. The Facility consists of two tranches:

• Tranche 1 - US$100 million for the construction, development and operation of Voskhod; and
• Tranche 2 - US$20 million for potential overruns related to capital and working capital costs at Voskhod.