Mumbwa Revised JV Agreement Signed

    RNS Number : 4586L
  Blackthorn Resources Ltd
  12 January 2009
   

    BLACKTHORN RESOURCES LIMITED

    12 JANUARY 2009

    MUMBWA REVISED JOINT VENTURE AGREEMENT SIGNED
    AND ADDITIONAL MUMBWA DRILLING RESULTS

    KEY POINTS
    * Revised Joint Venture agreement with BHP Billiton finalised.
    * Results from recent drilling intersected copper mineralisation in hole S36-003.
    *     Best mineralised interval identified with copper values generally above the 0.25% cut-off include the following drilled
thicknesses:
    *     29 metres @ 0.36 % Cu between 366 to 395 metres,
    *     * including 2 metres @ 0.96 % Cu between 366 and 368 metres.
    *     Additional sampling is proposed to extend the sampled zones of this hole.


    JOINT VENTURE AGREEMENT

    Blackthorn Resources Limited ("Blackthorn Resources") is pleased to advise that the revised Joint Venture agreement ("JV agreement") has
been signed by both Blackthorn Resources and BHP Billiton.

    The signing of the JV agreement marks the completion of a process that was first announced on   5 August 2008 when Blackthorn Resources
informed the market that a "term sheet" summarising the key commercial terms and conditions of a revised agreement had been signed. 

    The revised agreement is in line with the "term sheet" conditions. It is comprehensive and brings positive benefits to both parties
including:
    *     Additional time for extra drilling phase 
    *     Additional concept study 
    *     Potential for Blackthorn Resources to have up to 150% of its costs in the first three Phases reimbursed subject to BHP Billiton
exercising its options to fully fund future phases of the project 

    Managing Director Scott Lowe said "A great deal of work has gone into finalising the detail of this revised JV agreement in the months
since the "term sheet" was agreed. Signing a detailed, legally binding document is a positive demonstration of the continued commitment of
both parties to this exciting project. While much work remains to be completed, early results and the interpretation of data have been very
encouraging and we see real potential in this asset. Our business relationship with BHP Billiton is in good shape and we look forward to
working together on assessing the economic viability, as well as the scope and scale of the Mumbwa Project".


    MUMBWA PROJECT DRILLING RESULTS

    Blackthorn Resources is pleased to provide assay results received from hole S36-003, drilled as part of the Mumbwa Phase 3 drilling
programme.  

    The Mumbwa Joint Venture Project is being explored with 50:50 partner, BHP Billiton, for Iron Oxide Copper-Gold ("IOCG") style
mineralisation. Phase 3 drilling commenced in early 2008, and involved drilling 18 cored holes for a total of 8,000 metres, which is being
fully funded by Blackthorn Resources.  

    Interpreted drill intersections for hole S36-003 are presented below. 

    These reported intersections represent drilled thickness and are calculated based on "cut-off" grades of 0.25% copper (Cu) and 0.25g/t
gold (Au). True width intersections were not quoted in these results as additional interpretation is required to correllate data from
adjacent drill holes.

    Results for drillhole S36-003
    * 1 metre @ 0.57 % Cu between 244 and 245 metres.
    * 1 metre @ 0.28 % Cu between 265 and 266 metres.
    *     4 metres @ 0.26 % Cu between 299 to 303 metres.
    *     4 metres @ 0.38 % Cu between 316 to 320 metres.
    *     3 metres @ 0.44 % Cu between 339 to 342 metres.
    *     29 metres @ 0.36 % Cu between 366 to 395 metres,
    *     including 2 metres @ 0.96 % Cu between 366 and 368 metres.

    S36-003
    Hole S36-003 provided some encouraging results which correlate with the model for the existence of a large IOCG mineralised system at
Mumbwa. These results represent assays from the 11th hole drilled from the 18 hole programme, with assays for pending holes to be released
upon receipt of results. Of the 11 holes, 10 have reported mineralisation above cut-off levels. It is anticipated results will continue to
be received until mid April 2009, with the addition of some infill sampling.

    While the sampled zones have identified mineralisation along the drill hole, further examination of the core has identified other zones
which merit additional analysis, and further sampling of this hole is planned.

    Drillhole S36-003 is located on the western side of the target area, and situated approximately 500 metres  north from hole S36-001,
drilled and reported in 2007 as part of the Phase 2 programme.

    S36-003 was core drilled at an angle of 70 degrees towards the east (090 degrees), for an end of hole depth  of 432 metres.  It was
proposed to drill to 400 metres depth, however this hole was extended beyond the proposed end of hole depth as mineralisation was identified
at the proposed termination depth.  A total of 284 samples of drill core and quality control samples were submitted for preparation and
analysis by AH Knight Group.  

    Diagrams and table of results from hole S36-003 are available on the Company website                              
www.blackthornresources.com.au.

 ATTRIBUTION  The information in this report which relates to Exploration
              Results at the Mumbwa JV Project has been reviewed and approved
              for release by Mr Michael J Robertson, MSc, Pr.Sci.Nat., MSAIMM
              who has 20 years experience in mineral exploration, and who is a
              full-time employee of MSA Geoservices, and has sufficient
              experience in relation to the style of mineralisation and type
              of deposit under consideration to qualify as a Competent Person
              as defined by the "Australasian Code for Reporting of
              Exploration Results, Mineral Resources and Ore Reserves" (The
              JORC Code 2004 Edition) and as a Qualified Person under the AIM
              Rules. Mr Robertson has consented to inclusion of this
              information in the form and context in which it appears. 

    Note: 
    Gold and copper assays are performed by ISO/17025 accredited Alaska Assay Laboratories (a Member of the Alfred H. Knight Group) in
Alaska, using hot aqua regia atomic absorption spectroscopic (AAS) analyses for copper and conventional fire assay procedures with AAS
finish on 30g aliquots for gold. Multi-element inductively coupled plasma mass spectroscopic (ICP-MS) analyses are currently subcontracted
to ACME Analytical Laboratories Ltd in Vancouver.  

    Quality Assurance/Quality Control (QA/QC) program forms part of the drilling, sampling and assay program on the Mumbwa Project.  This
program includes chain of custody protocol as well as systematic submittal of certified reference materials, duplicates and blank samples
into the flow of samples produced by the drilling. 

    Should you require further information please contact:

    Scott Lowe
    Managing Director
    Ph: + 61 2 9357 9000

    Fiona Owen
    Grant Thornton UK LLP
    Ph: [phone]


    www.blackthornresources.com.au


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