Release: Pelsart Resources: Updates on Mirah gold project and other prospects

(18 February 2008)--The Board of Pelsart is pleased to report the continued high level of development activity on its Indonesian Projects.

? Efforts in the last two months have focused on the consolidation of all basic exploration data generated over 23 years of drilling and geological interpretation for the Mirah Project. The data is being collected and documented in an auditable form to assist with the resource review and mine optimisation work. The previous optimisation study was carried out in 1997 and included a gold price of US$350 per ounce and a silver price of US$5 per ounce. Additional drill log data, not included in the previous work, will be used to improve the geological model. A confirmatory drilling programme is also planned to provide additional data for the resource optimisation, assist with grade control and probe extensions to the ore body at depth.

? Ongoing site activities at Mirah include access road surveys, a sampling programme to target additional prospective exploration targets and upgrading of accommodation facilities in preparation for increased site activities.

? The commencement of the plant refurbishment activity has been temporarily delayed whilst the engineering contracts and the financing arrangement with a global funding bank are being negotiated and finalised. The estimate time to refurbish and make whole the facilities will take between 9 to 12 months and the estimate of funds required to take the project to production is about US$25 million.

? Desktop studies for the Meratus and Kusan Projects are planned to commence by March 2008 in conformance with its Contract of Work programme. (end of release)