Operational Update and Suspension of Trading in Shares

 
TIDMMVA 
 
AIM 
Release 
                             30 January 2009 
 
 
                   Minerva Resources Plc (AIM:MVA) 
               ('Minerva Resources' or 'the Company') 
 
       Operational Update and Suspension of Trading in Shares 
 
The Directors of Minerva Resources  plc ("Minerva Resources" or  "the 
Company") are pleased to announce that a Sale and Purchase  Agreement 
has been  signed for  the  disposal of  its wholly  owned  subsidiary 
Palladex Limited (Samoa) and its subsidiaries Palladex Geotechservice 
LLC, Kyrgyzstan, and the Representative office of Palladex Limited in 
Azerbaijan to their management for the consideration of US$79,208 and 
the repayment of loans to the  value of US$420,792. The Company  will 
write off the  outstanding loan amount  of US$852,494 in  conjunction 
with  the   above  transactions.   Palladex  Limited   and   Palladex 
Geotechservices LLC  provide geotechnical  and drilling  services  to 
exploration and mining companies in the Krygyz Republic, the Republic 
of Kazakhstan and the  Republic of Azerbaijan. In  the year ended  30 
September 2007 the business had attributable profits of GBP114,137. 
 
The  funds  achieved  through  the  agreement  will  provide  Minerva 
Resources with additional short term working capital. As mentioned at 
the time of the placing on 17 September 2008, the Company anticipated 
that it would need to raise further funds in the first quarter  2009. 
Whilst the proceeds will  allow the Company  to meet its  liabilities 
and commitments until late quarter one 2009, the Company will require 
further funds to continue to operate. 
 
The resource drilling  programme at  Tulu Kapi will  be completed  in 
early February.  The data  from the  drilling programme  needs to  be 
compiled, assessed and  a resource calculation  undertaken, which  is 
expected to be  carried out  over the  next two  months. During  this 
time, all other exploration activities will be minimised. 
 
Given the  current  very  difficult  climate  for  small  exploration 
companies to raise  money on  the equity market,  the Directors  have 
resolved to enter  into a  Company Voluntary  Arrangement ('CVA')  to 
enable a longer  timeframe to seek  the necessary additional  funding 
required to continue operating the Company as a going concern. Should 
the creditors and members vote in  favour of a CVA, the Company  will 
be protected  for  a  longer period  from  creditor  pressures.   The 
Directors and  management  are  looking at  all  avenues  for  future 
funding arrangements or other strategic options. 
 
The disposal of Palladex  Limited is conditional  on the approval  of 
shareholders in  accordance  with  Rule  15  of  the  AIM  Rules  for 
Companies. A general  meeting of shareholders  has been convened  for 
Wednesday 25th  February  to approve  the  disposal. A  circular  and 
notice of General Meeting is  being sent to shareholders shortly  and 
includes proposals to sub-divide the  Company's share capital and  to 
adopt new  articles  of association.  It  will be  available  on  the 
Company's website at www.minervaresources.com 
 
The disposal is a related party  transaction under the AIM Rules,  as 
one of the  purchasers is  a Director of  the Company's  subsidiaries 
Palladex  Limited  and  Palladex  Geotchservice  LLC.  The  Directors 
consider, having consulted with its nominated adviser, that the terms 
are fair and reasonable insofar as its shareholders are concerned. 
 
In light of the Company's intention to enter into a CVA, the  company 
has requested a suspension, with immediate effect, of its shares from 
trading pending clarification of its ongoing financial position. 
 
The company will provide an update on the proposed CVA in due course. 
 
For further information please contact: 
 
Terry Ward 
Minerva Resources plc 
Tel: [phone] 
[e-mail] 
web: www.minervaresources.com 
 
Nick Rome 
Bishopsgate Communications Ltd 
Tel: [phone] 
[e-mail] 
 
James Joyce / Sarang Shah 
W. H. Ireland 
Tel: [phone] 
[e-mail] 
 
 
Notes to Editors 
Minerva Resources plc is a UK based mineral exploration and 
development company quoted on London's Alternative Investment Market 
(AIM:MVA). The Company is intent on delivering shareholder value by 
increasing and developing its mineral resources in a socially and 
environmentally responsible manner. 
 
The main focus is resource development in Ethiopia where the Company 
has first-mover advantage on prospective ground on the Arabian-Nubian 
shield. Key projects include the gold resources at the Tulu Kapi, 
Gudeya-Guji, Guji and Dina Prospects and the Yubdo Platinum Mine, 
located in western Ethiopia, some 560km west of Addis Ababa. 
 
Tulu Kapi was mined in the 1930s by an Italian company. In the 1970s, 
the United Nations Development Programme mapped and drilled Tulu 
Kapi. Tan Range Exploration carried out soil sampling, further 
mapping and drilling in the 1990s. These two phases of work confirmed 
mineralisation extending over a strike length of 1.5km. 
 
Minerva Resources has completed 30 diamond drill holes to date, at 
Tulu Kapi, on its resource drilling programme on a 600m section, 
after encouraging Minerva Resources ground mapping, data 
reinterpretation and excellent scout drilling results. 
 
Scout drilling programmes have been completed at the Gudeya-Guji, 
Guji and Dina gold prospects, which are located in close proximity to 
Tulu Kapi. The drilling has shown mineralised intersections on all 
three prospects. 
 
The results from the drilling on Tulu Kapi, which are shown in the 
latest drilling report announcement on the Company's website, 
www.minervaresources.com, and the satellite prospects and their close 
proximity point towards a new gold province with the potential for 
the establishment of a 'one treatment plant - multiple feed 
scenario'. 
 
The Company is examining the potential to expand the small scale 
platinum production operations at Yubdo, some 25km from the Tulu Kapi 
Project. A pilot gravity recovery plant has been installed, a 
metallurgical research programme has been initiated and further 
exploration activities have commenced on the 9km by 1.5km surface 
expression of the orebody. 
 
In Sierra Leone, the Company holds gold, platinum and diamond 
exploration licences, which will for the most part continue to be 
developed by existing Joint Venture partners. 
 
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