Clean-up Plant Permit Granted

RNS Number:5897B
Van Dieman Mines plc
07 August 2007

                                                                   7 August 2007

                              VAN DIEMAN MINES PLC
                                   (AIM: VDM)

               Central Concentrate Clean-up Plant Permit Granted
                         A Key Step Towards Production

   * Operational permit granted: development approval expected in the next 2
     weeks that will allow commissioning of Central Concentrate Clean-up Plant

   * Key step in being able to commence production from the Scotia Mine later
     this year

Van Dieman Mines plc (AIM: VDM), the AIM listed mining company which is
developing its 100% owned tin - sapphire mines in Tasmania, Australia, has
received a permit for the operation of its Central Concentrate Clean-up Plant
from the Department of Tourism Arts and Environment (DTAE). In the next two
weeks Van Dieman expect the Dorset Council to issue the development approval
which will enable the Central Concentrate Clean-up Plant to be commissioned and
to commence processing stockpiled bulk sample concentrates produced from the
operation of the pilot plant.

The stockpiled concentrates derived from the bulk sampling are estimated to be
in the order of 100 tonnes. Initial processing of these stockpiled concentrates
over the next three months will enable the company to fine tune the clean-up
circuit and will result in the production of an estimated 10 to 15 tonnes of tin
and 6,000 to 10,000 carats of corundum. This material is expected to yield
somewhere in the vicinity of 1,000 to 2,000 carats of sapphire. It should be
noted that some of these concentrates have been already sorted for their gem
component and that material is currently with our USA partner, Columbia Gem
House (CGH). Some gold dore is also expected to be produced, this will also be
forwarded to CGH for sale.

The Central Concentrate Clean-up Plant will then be used to treat concentrates
from the proposed start up of the Scotia Mine, which is expected to produce an
estimated 700 tonnes per annum of tin and 1.5 million carats of mine rough gem
quality sapphire annually when in full production. The start up of the Scotia
Mine is scheduled to commence later this year.

Clive Trist, Managing Director, Van Dieman Mines, commented:

"The concentrate clean-up plant has been assembled and is currently pre-
commissioning in preparation for commencing processing later this month. We will
then ship tin concentrates to Thaisarco in Thailand, our long-term off-take
partner, which will gives us immediate cash flow and allow us to continue to
market our sapphires and spinel to potential customers in the USA ahead of the
start of production at the Scotia mine later this year."

ENQUIRIES:

VAN DIEMAN MINES plc                  Tel: [phone]
Clive Trist, Managing Director        Email: [e-mail]

GRANT THORNTON CORPORATE FINANCE      Tel: [phone]
Fiona Owen

FOX DAVIES CAPITAL LIMITED            Tel:  [phone]
Richard Hail, Corporate Finance

BANKSIDE CONSULTANTS                  Tel: [phone]
Michael Padley / Louise Davis

Background on Van Dieman (AIM: VDM)

VDM is in the process of developing its alluvial tin, sapphire and accompanying
mineral deposits in the northeast of Tasmania, Australia where it owns 15
exploration and retention licenses. Exploration and development planning consent
is now complete for VDM's Scotia tin and sapphire mine which is scheduled to
move to first production later this year. When in full production the Scotia
Mine will produce annually an estimated 700 tonnes of tin and 1.5 million carats
of mine rough gem quality sapphire

NOTES:

1.        Central Concentrate Clean-up Plant Description

The Central Concentrate Clean-up Plant is an essential part of the overall
production circuit. It allows the company to upgrade the main treatment plant
concentrates to grades that will attract bonus payments rather than penalty
payments. The crude concentrates from each mine, a tin concentrate assaying
approximately 70% tin and a "Mine Run" gem concentrate, will be transported to
this facility located in the township of Gladstone. The facility contains two
process lines, specifically:

A.      The mine run gem concentrates are dried in a gas fired rotary drier and
then passed through a "Rare Earth" magnetic separator. This process produces a
tramp metal component, a spinel component which is retained for subsequent gem
processing and a corundum rich product that is then hand processed and sorted to
a high grade concentrate containing non-gem corundum and gem quality sapphire.

B.       The tin concentrates delivered from the treatment plant and running at
grades of around 70% tin are passed across a Holman (Wilfley) shaking table.
This process produces a gold concentrate, a +74% tin concentrate, a low grade
tin bearing middling and a tin free sand tailing. The gold concentrate is
smelted to a 90% gold dore bar which is forwarded on to CGH in the USA for sale
or use in jewelry products. The high grade tin concentrate is dried and bagged
in 1.5 tonne bulker bags for shipment to the Thaisarco smelter in Phuket,
Thailand. Tin bearing middlings are returned to the main plant for reprocessing.

2.        Mine Run Gem

Is a term used in this instance to describe a concentrate containing all
corundum (including sapphire) plus any associated semi-precious gem minerals
such as spinel, topaz and zircon.

3.        Corundum

Is the generic mineral name for the group of minerals having the composition
Al2O3 and comprising the gems sapphire and ruby. In this case the Company
reports that 20% of the recovered corundum comprises gem quality sapphire.

4.        Gold Dore

Unrefined gold and silver bullion bars which will be further refined.


The information in this report is based on information compiled by the
Operations and Exploration Director Neil Kinnane (FAusIMM, CPGeo). Mr Kinnane is
an executive director of Van Dieman Mines and a Fellow of the Australasian
Institute of Mining and Metallurgy.


                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
MSCEAAPKELKXEFE