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Project Update

13th Oct 2006 09:51

Churchill Mining plc13 October 2006 13 October, 2006 CHURCHILL MINING PLC ("Churchill" or "the Company") South Woodie Woodie Manganese Project - Update Highlights: • 6,600km airborne geophysics programme and interpretive work completed • Structural controls drilling at Enacheddong Creek completed • New VTEM technology to be deployed The Directors of Churchill Mining Plc (AIM: CHL) announce that the Company hascompleted the next phase of exploration at its 100%-owned South Woodie Woodiemanganese project in the East Pilbara region of Western Australia. Churchill commissioned geophysical specialists Fugro to fly a 6,600 kilometreairborne magnetic and radiometric survey over the entire South Woodie WoodieProject at a line spacing of 100m with infill over the Enacheddong Creek area at50 m line spacing. In addition, the Company drilled 10 RC holes for 1,064 metres (on a drillspacing of 50m on lines 150m apart) at Enacheddong Creek to test known outcropsand better understand the geological setting of the prospect. The combinationof the two initiatives has significantly improved the Company's understanding ofthe South Woodie Woodie area, in particular the surface distribution of thebasement rocks that host the manganese mineralisation and also the overlyingregolith that has resulted in its physical and chemical remobilisation.Importantly, the extent of the regolith continues to demonstrate the potentialfor large, buried manganese deposits in the project area. Churchill has produced a new surface geology and bedrock geology map for theentire project area. These maps have been used to identify broad areasconsidered most prospective for manganese. The next phase of exploration is likely to involve the use of versatiletime-domain electromagnetic (VTEM) geophysics in these broad areas to define newtargets for drilling. VTEM is a leading heli-borne technology that can detectconductive mineralization and related structures to depths of 400m belowsurface. Similar technologies have directly helped lead to the discovery offive manganese deposits at the nearby Woodie Woodie mining centre. Churchill has begun negotiations to conduct a survey with Geotech, the Canadiancompany that has brought the cost-effective VTEM technology to Australia; VTEMwas recently flown by ASX-listed Fox Resources. It is understood that there isnow a number of other Pilbara-focused explorers planning to use the technologygiven its multi-commodity application. Results from the proposed survey will be integrated with the new maps producedfrom the magnetic and radiometric data to define specific drill targets. ENDS Enquiries: Churchill Mining Plc Corporate Synergy Parkgreen Communications Paul Mazak/ James Hamilton Olly Cairns Brendan McNamara +61 (0)8 9388 0377 +44 (0) 20 7448 4400 +44 (0) 20 7493 3713 [email protected]@churchillmining.com Notes to editors Churchill Mining Plc listed on AIM in April 2005. It has two projects and inearly 2006 raised GBP5.25 million to acquire and explore the Sendawar coalproject. South Woodie Woodie The South Woodie Woodie project covers approximately 490 square kilometres inthe East Pilbara region of Western Australia. Owned via Churchill Mining'swholly-owned subsidiary, Planet Mining Pty Ltd, the project sits approximately400km southeast of Port Hedland in the highly prospective Pilbara manganeseprovince. Churchill owns the project 100%. To date much of the project areahas never been explored due to the presence of surface cover. Sendawar Churchill Mining's Sendawar project in Kalimantan, Indonesia, covers more than1,000 square kilometres of prospective ground and lies in close proximity to twooperating open-cut mines: Thai miner Banpu's newly commissioned Trubaindooperation, which will shortly be producing at a rate of approximately sixmillion tonnes per annum (tpa); and the privately-owned Gunung Bayan mine whichhas been operating since 1998 and produces approximately 3.4 million tpa. Coalfrom these mines is transported via barge via the Mahakam River to the port ofSamarinda. The Sendawar project is located approximately 50km from the MahakamRiver. In accordance with the AIM Guidelines, Dr Michael G Jones of LithofireConsulting Geologists is the qualified person that has reviewed the technicalinformation contained in this press release. This information is provided by RNS The company news service from the London Stock Exchange

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