Release: Herald Resources: Excellent intersection at Lae Jehe

(19 May 2008)--Herald Resources Limited is pleased to announce that a highly significant drillhole intersection has just been achieved at the Lae Jehe deposit at the Dairi zinc/lead project in North Sumatra, Indonesia.

Drillhole SOP290D, by making the deepest and one of the most important intersections to date, will further extend the known resources at Lae Jehe. An almost continuous mineralised intersection of 35.6m was made from 763.3m downhole. The lower 13.2m of predominantly massive sulphides, from 788.6m downhole, is interpreted to be the down dip continuation of the M2 horizon; whereas the upper 22.4m zone is interpreted as veined, remobilised suiphides with 2 bands, each 1m wide, of massive sulphides within a shear/fault zone, from 763.3m downhole. The estimated true width of the 13.2m massive sulphide zone is approximately 9m. Assay results for this main massive sulphide intersection should be available in about 10 days time.

The intersection is approximately 200m downdip from SOP282D (17.9m @14.5% Zn, 7.6% Pb) and is 75m vertically beneath the base of the present resources boundary. The inferred fault zone previously shown on the long section as possibly interrupting the down dip continuation of the resources has been removed from the long section as it is now not known where, or even if, this sub-vertical fault zone will actually intersect the mineralised horizon.

The SOP290D intersection will have a very significant positive impact on resources in the vicinity of the intersection, having thrown wide open the overall potential of this area at Lae Jehe. It is anticipated that a revised resources estimate will be announced immediately following receipt of the awaited assay results.

Background
The Dairi Feasibility Study (DFS) is based solely on a 1 Mtpa development of the high-grade Anjing Hitam deposit (Reserves 6.5MT @ 14% Zn, 9% Pb) for an initial mine life of 7 years, although substantial other resources also exist within the project area, e.g. Lae Jehe.

The Lae Jehe prospect, currently the subject of a prefeasibility study, is located about 1.5km north of the main Anjing Hitam orebody and 800m north of the planned concentrator site. Lae Jehe is the most advanced target to provide future mill feed following the Initial 7 year mine life at Anjing Hitam. The Combined Resources at Lae Jehe presently stand (before being re-estimated) at 9.1 Mt at 10.4% Zn, 5.6% Pb. (end of release)

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