Operations Update

RNS Number:8006N
Oriel Resources PLC
12 February 2008


                                                                        AIM: ORI
                                                                        TSX: ORL
                                                                   PRESS RELEASE
                                                               12 February, 2008

                              Oriel Resources plc

        Ferrochrome production continues while third and fourth furnaces
                          are commissioned at Tikhvin

                  Operations update on the development of the
           Voskhod chrome and Shevchenko nickel projects, Kazakhstan
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The Directors of Oriel Resources Plc ("Oriel" or "the Company"), the
London-based chrome and nickel mining and processing company, are pleased to
announce that the commissioning of the remaining two furnaces at the Company's
Tikhvin ferrochrome smelting plant ("Tikhvin"), Russia has commenced.

We are also pleased to advise of the third drawdown of funds of US$30m
(totalling US$90 million) from the US$120 million loan facility ("the Facility")
for the development of Oriel's Voskhod chrome project ("Voskhod"), as well as
giving an update on the progress of development at the Voskhod chrome and
Shevchenko nickel ("Shevchenko") projects in Kazakhstan.


Ferrochrome Production Continues at Tikhvin
The Tikhvin processing plant, located 200km south east of St Petersburg within
an industrialised zone with immediate access to road and rail transport,
commenced the first of two phases of high carbon ferrochrome ("HCFeCr")
production in April, 2007.

Since that time and after a 10 week ramp up period, the first of four furnaces
has been at full production. The second furnace was commissioned during August,
2007 which, after a similar ramp up period, has also been operating at full
capacity.

The remaining two furnaces have been commissioned and are due to be fully
operational by the end of Q1, 2008. HCFeCr production capacity will then be
148,000t per annum; rising to 180,000t during 2011 as phase two of the project
comes on stream.

Following the completion of construction in December, 2007 and the subsequent
operations of furnaces one and two, the recent and on-going chromite ore
shortage on the global market delayed the immediate commissioning of the third
and fourth furnaces. Due to heavy purchasing by the Chinese, a severe global
chromite ore shortage was evident during December, 2007. With the corresponding
increase in ore prices, compared to the ferrochrome price, it was deemed the
immediate purchasing of ore stocks to feed the furnaces was not in the best
interest of the Company. By January, 2008 ore prices had stabilised and, with
the rising ferrochrome price, Tikhvin management was able to procure feed ore at
more reasonable prices.

Tikhvin's 2007 HCFeCr production totalled 28,770 tonnes with 19,214 tonnes sold
and delivered to the European market. Sales were primarily to Glencore
International A.G. and secondly to DCM DECOmetal GmbH, at an average price
received per pound of chrome of US$1.34 delivered fob Klaipeda, Lithuania,
generating Tikhvin's first revenue from current working projects of
US$37,599,000.

The smelter's initial demand for beneficiated chromite ore is being satisfied by
imported material until the Q3, 2008 when production from our Voskhod mine is
due to commence and integration is realised. From late 2008 onwards, Tikhvin's
first-stage ore demand will be met from approximately one-third of the planned
Voskhod mine production.

The ferrochrome produced at Tikhvin will contain approximately 70% to 71%Cr
metal (using Voskhod ore). The smelter comprises four semi-closed submerged arc
AC furnaces with full capacity of 22.5MVA each (at 180,000t per annum HCFeCr)
and four gas cleaning plants.


Voskhod Chrome Project Development
The Board is pleased to provide an update on mine development at Oriel's Voskhod
chrome project which is still on target for first production Q3, 2008.

During December 2006, Oriel closed a US$120 million debt financing with the
Eurasian Development Bank (Russian/Kazakh Government joint venture), Bayerische
Hypo- und Vereinsbank AG (UniCredit Group) and WestLB AG. These three
institutions have provided loan facilities totalling US$120 million for the
further development of Voskhod.

As reported during April 2007, the Mining Contract and the Process EPCM & Lump
Sum contracts were successfully concluded with Central Asia Mining (a joint
venture between Byrnecut Mining, Australia and Vostokshakhtstroy, a local Kazakh
contractor) and DRA International, South Africa, respectively.

* The mining contractor, Central Asia Mining, has completed the 185m long box 
  cut, mine portal, installation and installation of the intake ventilation 
  system.

* The primary ventilation shaft has reached a depth of 110m and due to reach 
  final depth of 205m by the end of May.

* Development of the decline face has reached 1,020m from the surface portal, 
  of which 840m has been completed in hard rock using roof bolts and shotcrete 
  support.

* Site infrastructure required for the construction and initial mine
  development has been installed including temporary power, roads, temporary
  offices, fuel tank farm and concrete batching plant.

* Plant construction is advancing with the process building steelwork now 
  erected.

* Earthworks for the plant building, tailings dam, railhead and railhead access
  road is at an advanced stage, as is the installation of the 25MW permanent 
  power supply.

* Satellite communications system has been installed.

* Permanent explosives magazine has been constructed and licensed.

* Main personnel camp in the nearby town of Khromtau has been up-graded to 
  accommodate more than 100 staff and contractors.

Oriel is pleased to announce that on 11 February, 2007 the Company completed the
third drawdown (US$30 million) of funds from Voskhod's US$120 million loan
facility for the further development of the chrome project. The initial drawdown
of US$40 million took place during July 2007 and a further US$20 million was
drawn down in December 2007.

The US$120 million Facility comprises:
* US$60 million loan provided by EDB; and
* US$40 million seven-year loan and a US$20 million cost overrun facility
  provided by WestLB and HVB/UniCredit.


Shevchenko Nickel Project Development
As previously announced (11 October 2007), after reviewing results of extensive
technical and economical comparative analysis of all appropriate technologies
for the development of the Shevchenko Nickel Project, Oriel chose to proceed
with continuous atmospheric tank leach technology, as it provided significantly
better economic and technical performance compared to the other technologies.

Leach tests provided up to 90% nickel recovery on screened and upgraded
Shevchenko ores, while favourable acid consumption rates were also achieved
during testwork. A readily available, local supply of sulphuric acid has been
sourced at competitive rates further supporting the expectation of low operating
costs. Given the low cost availability of acid and the favourable leach
dynamics, cash operating costs are expected to be in the 2nd quartile of the
world's nickel producers cost curve.

Oriel intends to implement a Phase 1 commercial development of Shevchenko to
produce a nickel mixed hydroxide product ("MHP"). Plant construction is expected
to begin in Q2 2008, leading to the commencement of Phase 1 commercial scale MHP
production during H2 2009.

Baran Engineering & Projects Ltd., a subsidiary of Baran Group Ltd. ("Baran"), a
global provider of engineering, technology and construction services, was
selected as project manager and is currently working with Oriel on finalising
capital estimates and the implementation schedule of Phase 1 commercial
development, the results of which are expected mid March, 2008.

Dr Sergey V Kurzin, Executive Chairman of Oriel commented:

"I am extremely pleased with the progress the Oriel team has achieved across our
three projects. From the aggressive and continuing development of the now
operational Tikhvin plant and the solid steps taken by the team to develop the
Shevchenko resource, to the impressive achievements being realised at the
Voskhod mine site. The Company remains on target to attain integration through
Voskhod and Tikhvin during Q3, 2008. Oriel's management is also evaluating the
construction of additional ferrochrome plants to utilise and optimise the excess
of Voskhod chromite production.

"The completion of Oriel's third drawdown of funds from Voskhod's loan Facility
enables us to continue to develop on track what will soon become a world class
chromite mine."


ENDS
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For further information please contact:

Dr Sergey V Kurzin, Executive Chairman, Oriel Resources plc
Tel: [phone]

Nick Clarke, Managing Director, Oriel Resources plc
Tel: [phone]

Randy Reichert, COO, Oriel Resources plc
Tel: [phone]

Gavin Dallas, Marketing and PR, Oriel Resources Plc
Tel: [phone]

Michael Padley / Michael Spriggs, Bankside Consultants
Tel: [phone]

Keith Schaefer, Vanguard Shareholder Solutions
Tel: + 1 604 608 0824

www.orielresources.com
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