Release: Herald Resources: Lae Jehe drill results continue to impress

(21 January 2008)--Herald Resources Limited is pleased to announce positive assay results from recently completed drill holes at the Lae Jehe prospect, located about 1.5km north of the main Anjing Hitam orebody and 800m north of the planned concentrator site in Sumatra.

Lae Jehe is the most advanced target to provide future mill feed following the initial seven year mine life at Anjing Hitam. The combined Resources at Lae Jehe stand at 6.5Mt at 11.3% Zn, 6.1% Pb, (Indicated Resource of 4.6Mt at 11.6% Zn, 6.2% Pb and Inferred Resource of 1.9Mt at 10.6% Zn, 5.9% Pb).

Drill hole SOP278D, at the southern end of Lae Jehe Deeps on section 11000N, intersected 9.60m at 10.7% Zn, 7.1% Pb within the M2 horizon and two narrow intersections of massive sulphides within the Basal Zone of the Julu Unit.

Herald Chairman Terry Allen said today?s results were especially significant because of the location of the intersection at the very southern end of the resource model.

?It is a good indication that further resources for Lae Jehe will continue to be defined in this southerly direction,? said Mr Allen.

A majority of the Resources announced for Lae Jehe are in the M2 horizon.

In the same general area, SOP271D obtained a downhole intersection of 3.3m at 13.5% Zn, 7.1% Pb in the M2 horizon and a downhole intersection of 4.94m at 9.1% Zn, 5.5% Pb in the M4 horizon.

The southern end of Lae Jehe was also targeted with shallow drilling and the two notes completed, SOP26OD and SOP279D, intersected various mineralised horizons all of which are outside of the existing resource model. Of some interest in SOP2600 is the high silver grades obtained in the Jehe Dolostone Vein Type Mineralisation (JVT) vein mineralisation which has not been a prime target in the drilling programmes to date. This is now one of a number of intersections in this same relative position (on the contact between the Julu shales and the Jehe dolostone) which have intersected high silver values. The strike length of this zone is about 500m with an average width of about 4m. The down dip extent is not well defined on all cross sections but is known to be up to about 300m in places. The average grade of silver in this zone, as defined by drilling, is about 75 g/t Ag accompanied by an average 1.0% zinc and 1.7% lead. The metal equivalence of this mineralisation is approximately 4-5% Zn. (end of edited release)