uranium project

ASX ANNOUNCEMENT

17 JULY 2007



DIORO AND CVRD JOIN FORCES

TO EXPLORE URANIUM PROJECT



Highlights:

• Dioro signs farm in agreement with the second largest mining company in the
world CVRD to explore the Kunderong and Kennedy Projects, Western Australia
• CVRD to spend A$4m over four years to earn 60 per cent of the uranium rights
in the projects
• Recent results of radiometric and magnetic surveys have identified numerous
uranium anomalies at project.
• Airborne electromagnetic survey planned for next quarter




Australian resource company Dioro Exploration NL (“Dioro or “the company”) has signed a
farm in agreement with Rio Doce Australia Pty Limited, a wholly-owned subsidiary of
CVRD,to progress uranium exploration at the company’s Kunderong and Kennedy uranium
projects, located near Newman in Western Australia.



Under the terms of the farm in agreement, CVRD will spend A$4m on exploration at the
project over the next four years, to earn an interest of 60 per cent in the uranium rights, with a
minimum expenditure of A$0.8m prior to withdrawal. Dioro then can elect to contribute to
further exploration or dilute to 80% and be free carried through to the completion of a pre-
feasibility study. Dioro maintains to rights to all other minerals including gold on the
Kunderong and Kennedy Projects.



Dioro will initially manage the uranium exploration and has engaged the services of Peter
Robinson as Project Manager. Peter is a uranium exploration expert with over 36 years of
Australian exploration experience and over 14 years with Australian uranium specific
experience.



The granted Kunderong project (741km2) is pegged over 50km strike length of the
Breshnahan unconformity that is prospective for unconformity style uranium mineralisation.



The region in which this project is located is one of the most prospective areas for this style of
mineralisation and includes two existing mineralized prospects Angelo and Turee Creek
(Noranda) located within 2 kilometres of the Kunderong tenements.



In November last year Dioro uncovered several uranium targets after the completion of an
initial radiometric and magnetic survey at the project. The survey, which covered a total area
of 741km2, identified a number of large radiometric uranium anomalies over the Breshnahan
unconformity and within the calcrete channels draining from these unconformities.




In addition to the survey, the company has also pegged two new tenements, the Kennedy
Project, which covers 1123km2. This project has the potential to host uranium. The Kennedy
Project is located 25km south west of the Kunderong Project.



Exploration is scheduled to commence as early as September with a detailed airborne
electromagnetic survey over the whole of the Kunderong Project and part of the Kennedy
project. This program will provide valuable structural, lithological and geophysical information
that will allow the partners to better target future ground-based exploration.



Unconformity related uranium deposits accounted for in excess of 30 percent of the world’s
total uranium resources and in Australia projects included the Alligator Rivers region in the
Northern Territory and the Rudall River region (including Kintyre) in Western Australia.



Dioro Exploration Managing Director, Rhod Grivas said the farm in agreement was an
outstanding result for shareholders that would enable the company to focus on progressing
its gold projects while providing an entrance for CVRD into Australia’s uranium sector.



“We are delighted to secure a farm-in agreement with one of the worlds largest mining
companies in CVRD. Not only do they have the financial backing and technical personnel to
further advance the Kunderong uranium project, but under the terms of this agreement they
will expend a large sum on exploration – which was very important for us,” Mr Grivas said.



“Australia is well-placed to capitalise on the huge increase in demand for uranium and Dioro
Exploration looks forward to working with CVRD to rapidly advance exploration for uranium at
Kunderong.”



The agreement will enable Dioro to focus on progressing the development of its 49 per cent
owned Frog’s Leg gold project and Penfolds gold and nickel projects which are located in the
goldfields region of Western Australia.





Yours faithfully

DIORO EXPLORATION NL











RHOD GRIVAS

Director





For further information please contact:



Rhod Grivas, Managing Director

Dioro Exploration

Ph: +61 8 9389 8799

David Tasker/ John Williams

Professional Public Relations

Ph: +61 8 9388 0944





Website: www.dioro.com.au







Editors Notes:



About CVRD



CVRD is the second largest mining and metals company in the world, maintaining business
activities in more than 20 countries. The company is the world’s largest producer and
exporter of iron ore and pellets, the world’s second largest producer of manganese and
ferroalloys, and one of the lowest cost producers of aluminum derivatives (bauxite, alumina
and primary aluminum).

With a present day market value of approximately US$ 110 billion, CVRD has been awarded
the following risk classification ratings: BBB, by Standard & Poor's Ratings Services (S&P);
BBB (high), by Dominion Bond Rating Service (DBRS); Baa3, by Moody’s Investors Service
(Moody’s) and; BBB-, by Fitch.

The company has been investing in an extensive portfolio of projects including Greenfield and
Brownfield programs (iron ore, pellets, bauxite, alumina, potash, copper, nickel and coal).
CVRD is also conducting a global multi-commodity mineral exploration program in several
countries.