Project Update

RNS Number:7363N
Oriel Resources PLC
17 June 2005

17 June, 2005



                         Oriel Resources plc ("Oriel")

   Oriel confirms excellent progress on Shevchenko nickel and Voskhod chrome
                             projects in Kazakhstan

Oriel Resources plc ("Oriel") announces today that world recognised
metallurgical organisation Mintek has issued its detailed final report ("the
Mintek report") on the large, demonstration-scale smelting campaign of the
Shevchenko ferronickel ores. The campaign, which was successfully completed at
the end of March 2005, was conducted as part of the definitive feasibility study
(DFS) being managed by Bateman, the international engineering group.

In addition, Oriel has received confirmation of growing demand for its Voskhod
chromite ore due for production during 2007.

Executive Chairman, Dr Sergey V Kurzin said; "I am delighted that all our
milestones are lining up in the right direction."

Shevchenko

Key findings of the Mintek report (dated 15 June 2005):

*                     The nickel ore samples from the Shevchenko deposits in
Kazakhstan have been successfully smelted in an extended demonstration-scale
campaign using the selected DC arc furnace technology

*                     The primary objective of 90% recovery of nickel into
ferronickel was achieved and even exceeded in some instances

*                     A nickel grade of 20% product in the ferronickel can be
produced from the Shevchenko ores.

*                     The flexibility of the process to accept the expected
range of ore types and blends has been confirmed

*                     Successful determination of key process and operating
parameters that have confirmed the design of the commercial-scale furnaces

*                     The establishment of these key process relationships will
allow the economic optimisation to proceed as planned

As part of the study the campaign smelted 193 tonnes of calcined ore to produce
approximately 11.3 tonnes of ferronickel. The successful results for the
smelting of the bulk ore samples from the Shevchenko nickel project were an
essential part of confirming the design of the plant.  Also, the results
determine a saleable product after the usual refining processes.

Bateman who oversaw the smelting campaign confirms that the data provides the
required parameters for the design of the smelting furnaces for Shevchenko.

Sustained periods of stable furnace operation were achieved and accurate
material and energy balances over the campaign were measured, which therefore
allowed the determination of reliable process relationships. This approach has
also successfully generated the necessary process data for input to the economic
optimisation of the overall project. The most important parameter is the nickel
head grade, however the relationships between parameters such as the other
components in the ore, namely SiO2, MgO and Fe2O3 and the recovery of nickel and
the grade of the ferronickel have also been determined. This information will
permit the further refinement of the economic optimisation based on the ore
resource data.

The preliminary feasibility study completed in September 2004 indicated a
pretax, pre-royalty net present value ("NPV") (discount rate 10%) of $489
million and an internal rate of return of 26.6% based on a maximum pre
production capital exposure of $346 million, and an operating cost of $1.53/lb
nickel.

The DFS that commenced in November 2004 is expected to be finalised by September
2005.

Voskhod

The highlights of the Heinz Pariser Alloy Metals and Steel Research marketing
report dated June 2005 ("the HP Report") on the demand for chromite from the
Voskhod Chrome Project  were:

*                     Kazakhstan's two largest neighboring countries China and
Russia would be the ideal destinations and markets

*                     Chrome ore consumption in China and Russia to grow at 6%
per annum 2005-2010

*                     Prices for Kazakhstan high grade chromite ore such as
those Voshkod can produce, ranged from US$142 to $200 per tonne in Q1 2005.

Oriel previously reported that a preliminary assessment study ("PAS") carried
out by Geoincentre, a technical institute based in Almaty, gave an estimated NPV
(discount rate 10%) of US$122 million using US$80 per tonne of ore.

Oriel is currently finalising its PAS on the Voshkod Chrome deposit.  Soviet
drilling (non 43-101 compliant) developed a resource of 18.7 million tonnes of
46.2% chromite ore (Cr2O3).

Confirmation and infill diamond drilling at the project site is in progress with
some 2,600 metres completed.

The HP Report studied each of the following in detail: chromite uses; production
and supply; trade statistics; demand; and price trends. The HP Report stated: "
Operating parameters such as energy cost and employment are very favorable and
with the chrome demand moving steadily to the "East" in China and Asia,
Voskhod's location is a significant advantage."

Kazakhstan is the second largest producer of chromite ore in the world, and
Voskhod is located some three kilometres from the single largest chromite mine
in the world, Donskoy GOK, operated by KazChrome.

The Voskhod deposit is at depths of 98 metres to 440 metres below surface and
consists of one large lens with up to 9 smaller footwall protrusions.
Infrastructure in the region is well developed with a long history of mining
centered on the town of Chromtau and the deposit has road, rail and power links,
all within a few kilometers.

Oriel expects to commence production of chromite ore from an underground mine
during 2007.

Dr Sergey V Kurzin, Executive Chairman, commented:

"The Voskhod study confirms that the ore has nearby demand in Russia and China,
the two fastest growing chromite markets in the world and we are in preliminary
discussions with several potential buyers, with the aim of securing offtake and
other means of collaboration for our chrome product."

Mr TR Curr (BSc; MSc) is Manager Pyrometallurgy Division at Mintek and is a
qualified person in accordance with definitions set out in National Instrument
43-101 and he has consented to this announcement and reference to his report
herein.

Mr Heinz Pariser (BEc) is the author of the HP Report and he is a qualified
person in accordance with the definitions set out in National Instrument 43-101
and he has consented to this announcement and reference to his report herein.

                                    - Ends -


For further information, please contact:

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

Dr Nic A Barcza, Managing Director, Oriel Resources plc
Tel: [phone]

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

Jonathon Brill/Billy Clegg, Financial Dynamics
Tel: + 44 (0) 20 7831 3113

Vanguard Shareholder Solutions
Tel: [phone]

NOTES:

The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.

The information contained in this release is not for dissemination to the US.





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