initial drilling results

Initial Drilling Results

Hematite iron intersections on southern Eyre Peninsula

Lincoln Minerals Limited (ASX Code: LML) is pleased to advise that the first aircore and slimline RC drilling program has been completed on the Company’s Gum Flat iron ore project, EL 3422, near Port Lincoln on southern Eyre Peninsula, South Australia, and all
assay results have been now received.

Highlights are:

· Hematite-rich banded iron formation containing intersections up to 52.6% Fe

· Large exploration target with at least 5 km strike length of high amplitude magnetic anomalies and associated folded iron formation

· Relatively shallow cover within 20km of existing infrastructure

Eight zones of significant iron (Fe) mineralisation have been defined within a sequence of folded Banded Iron Formation (BIF) and overlying locally pisolitic ferruginous sediments.

These occur along a series of aeromagnetic anomalies with a cumulative strike length totaling ca. 30 km but including 5-6 km of high amplitude magnetic anomalies.

At the Rifle Range Prospect, there were several drill intersections averaging better than 30% Fe. GFAC033 intersected 33m of hematite BIF averaging 42.1% Fe from 18-51m including 18m @ 47.8% Fe from 24-42m.

This was an angled hole so the true depth to the top of
mineralisation, and hence thickness of cover sediments, is only 15-16m. GFAC060, 1.2 km along strike to the south, intersected similar hematite mineralisation including 6m @ 52.6% Fe from 30-36m. The average depth of drilling was 50-60m.

The locations and details of significant intersections with >30% Fe are shown below in Table 1 and Figure 1.

Although no high grade DSO hematite (direct shipping ore) was identified during the inaugural drilling program, the Company and its joint venture partner, Mineral Enterprises Limited of India, are very encouraged by the relatively shallow high grade BIF occurrences in
an area that has never previously been drilled for iron ore yet is within 20km of established infrastructure and port facilities. Subject to certain conditions, Mineral Enterprises Limited will contribute up to $2.5 million in exploration expenditure to earn up to 40% of the Gum Flat Project. Detailed gravity surveys along with deeper RC and diamond drilling will be undertaken over the next few months.

Lincoln Minerals is a South Australian based iron ore, uranium and base metal exploration company with extensive tenement holdings on eastern Eyre Peninsula within the southern Gawler Craton. Eyre Peninsula is one of Australia’s oldest iron ore mining districts and
hematite iron ore has been mined continuously there for over 100 years.

In addition to the Gum Flat iron ore project, the Company has also recently drilled uranium, gold and base metal targets in its Mount Hill and Cckabidnie projects on central Eyre Peninsula but no assay results are yet available.

Further inquiries:
Dr John Parker
Managing Director, Lincoln Minerals Limited
Mob: 0412 517 323 Tel: (08) 8274 0243

Information in this report that relates to exploration activity was compiled by Dr A J Parker PhD, M AIG who is a Competent Person as defined by the JORC code.

Table 1: Aircore and slimline RC drilling results, Gum Flat (MGA Zone 53 map grid)