Nickelore: Signs formal option agreement to acquire Papua gold-copper project

(Perth, 16 October 2009)--Nickelore Limited wishes to advise that it has signed a formal option agreement to acquire up to a 51% interest in a gold and copper project in Papua Province, Indonesia (?Papua Gold & Copper Project?). The Company previously announced on 12 August 2009, the signing of a heads of agreement in relation to the Papua Gold & Copper Project.

Under the Agreement, Nickelore has the right to acquire up to a 51% interest in the Papua Gold & Copper Project over a four year period (?the Option?). The Option consideration will consist of a combination of cash payments, share consideration and exploration commitments, which are summarised as follows:

- Payment of US$140,000 cash on execution of the agreement;

- The progressive issue of up to 80 million shares over a four year period, subject to receipt of any requisite shareholder or regulatory approvals; and

- Exploration expenditure of US$5 million over a four year period.

The Option will be exercisable on or about 31 December 2009, subject to Nickelore?s satisfactory completion of the necessary legal and technical due diligence. It is important to note that Nickelore can terminate any further expenditure or share issues at any point after the exercise of the Option if the Company is not satisfied with the exploration performance.

Following execution of the Option agreement, Nickelore is pleased to announce the appointment of Mr Ron Heeks to the Board. Mr Heeks is a geologist with more than 25 years experience in the Australian, Asian and African exploration and mining industry. (end of edited release)