NEW DRILLING EXTENDS MINERALISATION AT MAUN COPPER PROJECT IN BOTSWANA

Discovery Metals Limited (ASX: DML, BSE: DML) today announced that new drilling results from its Maun Copper project in northwest Botswana have extended mineralisation at the P Grid Prospect and recorded grades of nearly 3% copper over significant widths at surface.

The results from a further five holes drilled at the P Grid Prospect, one of two key areas of mineralisation at Maun, have confirmed that copper-silver mineralisation extends over 1.5 kilometres of strike and is open to the northeast and southwest.

The new drill results confirm that P Grid is a significant body of copper-silver mineralisation and adds to the copper-silver resources defined at the Zeta Prospect (currently an Inferred resource of 20Mt @ 1.2% Cu, cut-off grade 0.6% Cu), 10km to the southeast of P Grid. Results recently announced for the Zeta Resource have demonstrated the potential to increase both the size and grade of the current Zeta resource.

Highlights

Ӣ Sampling of a surface trench at P Grid returned results of 9m @ 1.9% Cu and 4.2 g/t Ag, including 5m @ 2.9% Cu and 4.9 g/t Ag, and a second interval of 4m @ 1.8% Cu and 14.9 g/t Ag.

Ӣ Drill hole PD009-06 intersected 5.1m @ 1.3% Cu and 15 g/t Ag.

Ӣ The thickest and highest grade intersections occur close to the surface, which along with the moderate dip to the mineralisation, enhance the potential for extraction in an open pit.

Ӣ A zone of thickened and enhanced grade mineralisation, coming to the surface, extends over 500-600m of strike within the overall 1.5km strike length of the P Grid mineralisation.

Encouraging P Grid Results

Discovery Metal’s Managing Director, Mr Jeremy Read, said today the twelve holes and trench sampling completed at P Grid showed that P Grid contains a significant body of mineralisation with a higher grade zone extending to the northeast which is still open.

”The historical drilling at P Grid gave us an indication that a strike extensive body of copper-silver mineralisation could be present at P Grid and our results have shown this to be the case which is very positive,” Mr Read said.

”Enhancing the economics of P Grid is the higher grade mineralisation at surface where a trench returned 9m at 1.9% Cu. This zone is still open to the northeast which is very encouraging and suggests more upside at P Grid,” he said. ”We have engaged external consultants to complete a resource assessment of P Grid, with the aim of defining an second Inferred Copper Resource for the Maun Project, and once this is complete we will follow up with further drilling.”

… Continued

P Grid Trench and Drill Hole Results

The first phase of exploration at P Grid has been completed with the sampling of a surface trench and the drilling of twelve diamond drill holes on 300m spaced drill sections (Figure One). A database containing all current and historical results has been provided to Snowden Mining Industry Consultants who have been retained to complete a resource assessment of P Grid. The initial results for the first seven holes completed at P Grid were released on 22 November 2006. The new drill hole results being released today are for holes PD006-06, PD009-06, PD014-06, PD015-06 and PD016-06.

The objective of the exploration completed to date at P Grid has been to determine the potential to define an initial Inferred Copper Resource, with the ability to be extracted in an open pit. Any resource defined at P Grid would add to the Inferred Copper Resource defined at the Zeta Prospect to the southeast and increase the overall copper resource inventory on the Maun Project. Consequently, the drilling targeted the copper-silver mineralisation at shallow depth. High grade copper-silver mineralisation was known to exist at surface as sampling of a trench by Delta Gold had previously returned copper values up to 8%.

Surface Trench

Sampling of the surface trench immediately south of drill section 34,350N confirmed the presence of high grade copper-silver mineralisation at surface. Two mineralised intervals occur in the trench which returned 9m @ 1.9% Cu and 4.2 g/t Ag (including 5m @ 2.9% Cu and 4.9 g/t Ag) and a second interval of 4m @ 1.8% Cu and 14.9 g/t Ag. The maximum copper value returned over a one metre interval was 7.3%. The 9m intersection appears to be the up dip continuation of the copper-silver mineralisation intersected in hole PD001-06 on section 34,350N.

Section 34,350N

Section 34,350N (Figure Two) occurs immediately to the north of the surface trench and returned similar thick intersections of copper-silver mineralisation as occur in the surface trench. Drill hole PD001-06 returned 17m @ 1.1% Cu and 19 g/t Ag from 40m (including 5m @ 1.7% Cu and 28 g/t Ag). Drill hole PD015-06 was drilled down-dip of PD 001-06 and intersected 4m @ 1.0% Cu and 12 g/t Ag from 164m, indicating that the thickest and highest grade mineralisation occurs close to the surface on this section.

Section 34,650N

Section 34,650N (Figure Three) contains hole PD004-06 which intersected 8m @ 1.0% Cu and 6 g/t Au (including 5m @ 1.2% Cu and 9 g/t Ag) from 31m. Drill hole PD005-06 was drilled down dip of PD004-06 and intersected 5m @ 1.2% Cu and 19 g/t Ag from 163m. As occurs on Section 34,350m the thickest and highest grade mineralisation occurs close to the surface. This suggests there is a zone, extending to the surface, of increased grade mineralisation over a strike length of 500-600m centred on sections 34,350N and 34,650N.

Section 34,950N

On Section 34,950N (Figure Four) the higher grade mineralisation occurs at greater depth than on Sections 34,350N and 34,650N, indicating a possible shallow northeast plunge to the mineralisation. The higher grade mineralisation was intersected in hole PD007-06 which intersected 5.9m @ 1.4% Cu and 13 g/t Ag from 154m. Drill hole PD006-06 intersected 3m @ 0.7% Cu and 3 g/t Ag from 30m.

Section 35,250N

Drill hole PD009-06 (Figure Five) intersected the higher grade copper mineralisation at 158m down hole depth returning an intersection of 5.1m @ 1.3% Cu and 15 g/t Ag. This result again suggests a shallow northeast plunge to the mineralisation. Drill hole PD008-06, drilled up dip of PD009-06 returned 2m @ 1.9% Cu and 14 g/t Ag from 37m.

Further Drilling at P Grid

It is probable that further drilling at P Grid will be completed to investigate the extension of the mineralisation to the northeast and southwest at shallow depth or to further define the thick higher grade mineralisation north and south of the surface trench. The final position of further drilling at P Grid will only be determined after Snowden have completed their resource assessment which is expected to be late in February.

The information in this report that relates to Exploration Results is based on information compiled by Mr. Jeremy Read who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Read is a full-time employee of the Company. Mr. Read has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ”Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Read consents to the inclusion in the report of the matters based on information provided by him and in the form and context in which it appears.