NickelSearch Limited announced that the full suite of multielement, ultra- fine soil assays previously announced as pending have now been received. This data, together with the results from the recently completed ground gravity survey, has enabled the Company to identify additional high priority greenfield exploration targets at the Company's wholly owned flagship Carlingup Nickel Sulphide Project (Carlingup or the Project), located in Ravensthorpe, Western Australia. Over the wet winter months, NickelSearch has continued its systematic targeting work aimed at discovery of high-grade, Komatiite-hosted nickel sulphide deposits.

The targeting work has been enhanced with the recently received total of 2,715 assays for multielement, ultra-fine soil geochemical results covering most of the 100% owned tenement package and the results of the recently completed ground gravity survey. Integration of this new data and other primary targeting criteria such as high- resolution aeromagnetic data has identified two new greenfield exploration targets (Sprint and Relay) and enhanced an existing target at John Ellis West. All three highlighted greenfields targets occur in the Carling North Trend which also hosts the Lipple and Wadley targets (previously called John Ellis North and John Ellis South, respectively).

This highly prospective corridor has a strike extent of 6km and is characterised by high-Mg komatiites with anomalous Kambalda (Ni/Cr*Cu/Zn) and Ni/Cr fertility ratio responses and PGMs indicative of nickel sulphides at depth. Surprisingly, previous exploration has been restricted to search for nickel laterite only and the few fences of drill holes that cross parts of the target areas were shallow, generally less than 30m in depth. The high priority standout greenfields targets and important targeting elements are: John Ellis West: A strong coincide nt Kambalda ratio, Ni/Cr and PGM geochemical soil anomaly is associated with a magnetic high feature suggesting a thickening of the ultramafic stratigraphy in the area, like RAV8, and may indicate an ultramafic channel facies.

Interestingly the target is flanked by two north-west trending gravity linear features. Sprint: A very strong discrete Kambalda ratio, Ni/Cr and PGM geochemical soil anomaly is associated with an antiformal fold closure seen in airborne magnetics and forms within a north-west structural corridor like RAV8. It is completely untested by previous exploration.

Relay: A strong Ni/Cr and modest Kambalda ratio and PGM geochemical soil anomaly coincide with a pair of tight antiformal fold hinges. Like the Sprint target, they appear to form within a north-west trending gravity structural corridor which also passes through the Sexton and Javelin target areas to the south. The new John Ellis West, Sprint and Relay targets and association with southeast-trending structures and fold hinges is an exciting development for the Company.

These anomalies are now high priority targets that warrant immediate follow-up work. An important observation of the structural setting of some world-class, komatiite-hosted nickel sulphide deposit such as Kambalda and Perseverance in Western Australia is the association with large domes or anticlines. Post-volcanic deformation events resulted in the progressive folding and shearing of the footwall contact, as well as the passive fold thickening of massive and disseminated sulphide orebodies.

Massive sulphides were physically remobilised into multiple generations of fold hinges and shear zones. The role of the southeast-trending structures in nickel sulphide formation at Carlingup is currently poorly understood. It is possible these represent pre-existing structures that were exploited by the ultramafic komatiite magma and may be areas that preferentially form thicker channel facies environments favourable for nickel sulphide formation.

If this is the case, then these structures combined with fold hinges constitute an important targeting element to assist target ranking and prioritisation across the Project. Carlingup Gravity Survey: A detailed ground gravity survey was completed across the Project, to complement the detailed airborne magnetic data, to better understand the regional geology and fundamental structures controlling nickel sulphide mineralisation. A total of 2,268 gravity stations were acquired in the recent survey by Atlas Geophysics Pty Ltd, plus 719 stations from a survey by Traka Resources in 2005 for a total of 2,987 stations covering an area of 14km².

The stations were spaced 50m apart along 100m spaced N-S survey lines. The most striking feature observed in the data is that several southeast-trending structures are interpreted across the area and are supported by similar features on the airborne magnetic imagery. Interestingly, the southeast-plunging nickel sulphide deposit at RAV8 and RAV5 prospect occur closely associated with these structures.

This relationship suggests the southeast structures are fundamentally important for the formation of nickel sulphide orebodies. Exploration - Next Steps: Program of Work application is well advanced, which will allow for the commencement of drill testing shortly at: Sexton to test a strong Kambalda ratio and PGM geochemical anomaly located east of the historical massive sulphide drill intersection of 2m at 1.2% Ni and 0.2% Cu, and RAV8 to test two separate DHEM conductor plates at the potential down plunge extensions at Shoot 1 and Shoot 3. A regional geological mapping program is currently being planned across the Project to improve the Company's understanding of the lithostratigraphic and structural framework of the entire Project area to improve geological targeting. This will assist in the Company's understanding of the role of the southeast-trending structures highlighted above.

Program of Work applications are proceeding for priority target areas at Sexton, Javelin, B1 and Serendipity where the Company intends to drill in the coming months.