Shevchenko Update

RNS Number:5358F
Oriel Resources PLC
11 October 2007



                                                                        AIM: ORI
                                                                        TSX: ORL

                                                                   PRESS RELEASE

                                                                11 October, 2007


                 Oriel Resources Plc ("Oriel" or the "Company")

                Oriel chooses atmospheric acid leach process to
         unlock the value of the Shevchenko Nickel Project, Kazakhstan
________________________________________________________________________________


Oriel Resources plc ("Oriel", or the "Company") (AIM:ORI TSX:ORL), the
London-based chrome and nickel mining and processing company, is pleased to
announce the results of its extensive comparative analysis of all appropriate
technologies for the development of the Shevchenko Nickel Project, Kazakhstan.
The Company has chosen to proceed with continuous atmospheric tank leach
technology, as it provided significantly better economic and technical
performance compared to the other technologies.


 *  Leach tests give up to 90% nickel recovery on screened and upgraded
    Shevchenko ores;
 *  Favourable acid consumption rates in testwork;
 *  Sulphuric acid readily available at competitive rates from Glencore
    International AG ("Glencore"), sourced from Kazzinc operations,
    Ust-Kamenogorsk, Kazakhstan;
 *  Oriel to implement Phase 1 commercial development of Shevchenko to
    produce a nickel mixed hydroxide product ("MHP");
 *  Low operating costs - expectation is that given the low cost availability
    of acid and the favourable leach dynamics, cash operating costs will be in
    the 2nd quartile of the world's nickel producers cost curve;
 *  Construction of Phase 1 commercial processing expected to begin Q2 2008,
    or as soon as practicable after completion of relevant engineering studies;
 *  Phase 1 commercial scale production of a nickel mixed hydroxide product
    ("MHP") aimed to commence H2 2009.

Baran Engineering & Projects Ltd., a subsidiary of Baran Group Ltd. a global
provider of engineering, technology and construction services, ("Baran") has
been selected as Project Managers and will work with Oriel on finalising capital
estimates during November 2007 and to implement Phase 1 commercial development.

Background to Comparative Analysis

In March 2007 Oriel commissioned Baran to carry out a technical and economic
assessment of process options available for a nickel production facility at
Shevchenko. Baran reviewed the following options:

1.  Ferronickel ("FeNi") production using the conventional Rotary Kiln
    Electric Arc Furnace (RKEF) process design and compared to the Direct Current
    ("DC") arc furnace flow sheet used in the feasibility study of December 2005
    compiled by Bateman Minerals and Metals, South Africa, ("Bateman").

2.  Atmospheric tank leaching based on a process flow sheet developed by
    Oriel's hydrometallurgical consultants (in collaboration with Oriel) as well as
    extensive bench-scale test work at Mintek, South Africa. The selected flowsheet
    incorporated "tried and tested" conventional unit operations developed in
    similar projects and the process design was developed by Hydromet, South Africa
    with detailed modelling by Dr Mike Dry, Canada.

3.  Heap leach based on the technical knowledge of and extensive pilot
    column test work at Mintek and preliminary engineering design and costing study
    of a heap leach plant by GBM Minerals Engineering Consultants Ltd, UK ("GBM").

High Pressure Acid leach ("HPAL") technology was not considered as Shevchenko
laterite ores display favourable leach kinetics at low process intensity and due
to the high capital costs, operating complexities and other well publicised
problems experienced at existing operations.


Further Details on the Assessment of Atmospheric Tank Leaching

Since late 2006 Oriel has continued bench-scale atmospheric test work at Mintek,
South Africa, which has covered extensive tank and continuous column leaching
(representing heap leaching) of the three mineral types (limonite, nontronite
and saprolite) found in the Shevchenko nickel laterite ore deposit. The stirred
tank leaching results carried out at solids to liquid ratio of 30% at a
temperature of 90 degrees Celsius achieved extremely positive levels of nickel 
extraction of 80% to 90% in 12 to 14 hours residence time.

The results of these tests formed the basis for Baran's leaching study and were
incorporated into a model of the overall process flow sheet which was used to
examine the technical feasibility of the circuit. The results were used to
calculate reagent and utility consumptions (acid, limestone, magnesia, lime,
water, fuel, gas) and these values were used in conjunction with indicative
consumable costs to calculate the variable portion of the projected operating
cost. Reagent and energy consumption data will be used as the inputs to the
design of the continuous pilot-scale operation to commence Q1 2008 and the
subsequent Phase 1 commercial-scale plant.


Oriel has a competitive advantage to develop a leaching operation in Kazakhstan
as the Company will be supplied with sufficient sulphuric acid from Kazzinc
operations in Kazakhstan. In addition, the selection of a hydrometallurgical
process to unlock the value of Shevchenko ensures the project is not dependant
on electrical energy costs which are expected to rise significantly in the
coming years. Oriel recently completed a long term off-take agreement with
Glencore to market a significant proportion of the Company's Voskhod Chrome
Project's annual 900,000 tonnes of beneficiated chromite ore product, commencing
Q3 2008.

Oriel has taken the decision to pursue the final testwork and construction of a
commercial plant based on extensive testwork and the technical and economic
assessment managed by Baran and supported by a number of experienced
consultants. An agitated ambient pressure tank leach operation to produce nickel
into a MHP or further into a metal is considered the most appropriate technology
to unlock the potential of the Shevchenko nickel laterite. Baran, as appointed
Project Managers, will immediately commence work on the process flowsheet design
sufficient for local permitting to be obtained and for construction to start on
site in Q2 2008 and will report back to Oriel during November 2007 on the
selected plant through-put, production capacity, capital and operating cost
estimates for the plant.

Batch and pilot scale tank leaching and nickel recovery testwork to produce both
a mixed hydroxide product and metal is planned for completion by Q2 2008 and
will be conducted at the South African facilities of Mintek. This testwork will
confirm the design parameters for the commercial-scale plant and demonstrate the
performance characteristics of the plant, based on the process flow sheet
developed.

Tank leaching of nickel laterites is considered to be an appropriate solution to
the treatment of the Shevchenko ore. Tank leaching is widely practiced in the
Platinum Group Metals Industry (5 plants installed in USA, Finland, Zimbabwe and
South Africa), it is fundamental to the Xstrata process (1 plant installed
Australia) and is practiced by all the Central African cobalt heterogenite
processes (5 plants installed, Nkana, Chambishi, Luilu, Shituru and Kabwe and 4
in design Nikanor, Tenke Fungurume, Kolwezi Tailings and Kalukundi) where the
process dynamics of tank leaching are well understood.

During Q4 2006, in conjunction with consultants specialising in the leaching of
nickel ores and heap leaching of base metals, Oriel commenced an extensive
programme of test work to evaluate the potential of atmospheric leaching of the
Shevchenko ore as an alternative to smelting, as suggested in the January 2006
feasibility study completed by Bateman. This test work programme followed on
from very encouraging bottle roll tests which indicated nickel extraction of
over 90% in approximately 30 days and with sulphuric acid consumptions that
compared favourably with results presented for other nickel leaching projects.

In addition, encouraging beneficiation results from recent ore screening work
completed in Kazakhstan by Kazmechanobr will be followed up in order to develop
the most appropriate ore preparation flow sheet design that would precede the
leaching stage in the Phase 1 commercial-scale plant. The upgrading tests on the
ore increased the Ni grades to 1.3% Ni, which greatly improves the project
economics.

Dr Sergey V Kurzin, Executive Chairman of Oriel commented:

"I am extremely pleased with what the Oriel team and our consultants have
achieved. The Company has expended considerable time and energy on extensive
research into discovering which technology is most suited to process
Shevchenko's ores. Shevchenko has the potential to become a world class nickel
producer through our choice of process option which combines low operating cash
costs and relatively low capital costs. We have now taken the first solid steps
to develop this resource and take advantage of the growing global stainless
steel demand."


ENDS
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Notes to Editors:

Oriel Resources was formed in July 2003 with Dr Sergey V. Kurzin as Executive
Chairman and CEO and is a London-based chrome and nickel mining and processing
company with its Ordinary Shares and Warrants admitted to trading on London's
Alternative Investment Market (AIM) and its Ordinary Shares listed on the
Toronto Stock Exchange (TSX). The Company's primary focus is on the
identification, acquisition, exploration and development of advanced chrome,
nickel, and other alloying opportunities in the countries of the FSU, including
The Republic of Kazakhstan and The Russian Federation. The Oriel group currently
has three projects, namely the Tikhvin ferrochrome smelter project, Russia, the
Voskhod chrome project and the Shevchenko nickel project, both situated in
north-western Kazakhstan. Following the results of recent feasibility studies
for the Russia and Kazakh-based projects and given the current high demand for
chrome and nickel products, the directors are fast-tracking the Voskhod chrome
project into production while further developing the Shevchenko nickel project.
The Tikhvin ferrochrome smelter project near St Petersburg, Russia commenced
operations in April 2007.


Shevchenko Mineral Resources

The resource infill drilling, geological modelling and mine optimisation plan
has increased the overall project life considerably and it is projected to be 47
years based on mining the resource in 24 years.

The AusIMM JORC and Ni43-101 compliant resource is estimated as follows:

                    Measured & Indicated Resources (JORC Compliant)
Cut Off Grade                  Tonnes ('000)                              Ni
     0.6%                         107,398                                0.84%
     0.8%                          50,637                                0.98%


Location and Geology

The Shevchenko nickel deposit was discovered in 1952 and is located within the
Kostanai district of Kazakhstan, some 50km south-west of the town of Zhitiqara.
The deposit is accessed by part bitumen, part hardcore road across the steppe
from Zhitiqara to the village of Shevchenko which lies a few kilometres to the
west of the deposit. Oriel owns 90% of the project and has a Mining Contract
with the Government of the Republic of Kazakhstan which allows for full
exploitation of the deposit, for the full 24 years with the right of extension.
Socio-economic studies show that the project will bring much needed employment
to the region and will be welcomed by the local population.


Infrastructure

The project area is extremely well served with main utilities such as power
(500kV transmission lines), gas (pipeline linking Russia and Kazakhstan) and
main rail line linked to the extensive rail system available throughout CIS,
Russia and into China from the nearby town of Zhitiqara.
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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]


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


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


Robin Birchall / Ryan Gaffney, Canaccord Adams Limited
Tel: [phone]


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

www.orielresources.com



                      This information is provided by RNS
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