progress at muremera nickel project

24 April 2008
Company Announcement


PROGRESS AT MUREMERA NICKEL PROJECT

Highlights

• Mineralisation model of Muremera confirmed to resemble that of the Kabanga deposit

• Assay and petrographic results returned for two of the four stratigraphic holes

• Nickel bearing sulphide mineralisation intersected in both holes

• Pentlandite observed in the majority of mineralised samples

• Successful completion of helicopter borne VTEM surveying, covering a total of 5,684 km

The Directors of Dwyka Resources Limited (“Dwyka” or “the Company”) are pleased to announce positive progress at the Muremera Nickel Project in Burundi.

The stratigraphic, assay results and petrographic data obtained from the drilling completed to date indicate that the Muremera bodies have stretches of higher tenor nickel sulphides within them, and that they are part of a flow-through system similar to that at the Kabanga deposit, currently being developed by Xtrata and Barrick in neighbouring Tanzania.

The next Phase of drilling due to commence in July will concentrate further on locating the parts of the system where the higher tenor sulphides may have coalesced and concentrated like they have at Kabanga.

ASSAY RESULTS

Assay results have been returned for two of the four stratigraphic drill holes recently completed on the Muremera B anomaly (D002 and D004). Nickel bearing sulphides are present in both drill holes, with the highlight being a 23.82m intersection in Hole D002 located between 216.14m and 239m returning average assay results of 0.22% Ni and Cu values of up to 0.27%.

PETROGRAPHIC STUDIES

Pentlandite, an important nickel sulphide mineral, was observed in the majority of the mineralised samples examined. Chalcopyrite and Pentlandite intergrowths with nickeliferous pyrrhotite were also observed. The petrographic evidence therefore suggests that the geological conditions are potentially favourable for the existence of high tenor Nickel sulphides similar to Kabanga.

VTEM

Geotech Ltd was contracted to fly the 1st B-field VTEM survey in Africa over the Muremera targets. The VTEM survey of the licence area has successfully been completed with a total of 5,684 kilometres flown at 100m line spacing. The VTEM data is currently being interpreted and should enable direct drilling off the VTEM data.

BHP BILLITON EARN-IN

BHP Billiton has the right to earn up to 50% of the ownership of Danyland Limited, the Dwyka subsidiary which currently owns 100% of the Muremera Nickel Project. It is now expected that the first earn-in hurdle of 10% will be achieved, following the completion of initial exploration activities, towards the end of the Second Quarter, 2008 with an approximate expenditure by BHP Billiton of US$3.16m, which is US$1.96m more than the minimum requirement of US$1.2m.