Project Update

RNS Number:7469C
Van Dieman Mines plc
24 August 2007


                                                                          

                              VAN DIEMAN MINES PLC


                                 PROJECT UPDATE

                   JORC resource in-situ value A$1.3 billion


Van Dieman Mines plc ("Van Dieman" or "the Company"), the AIM listed mining
company which is developing 100% owned tin and sapphire mines in Tasmania,
announces an update regarding its Tasmanian projects. The in-situ value of the
revised JORC resource is in excess of A$1.3 billion*.

At the Annual General Meeting of Van Dieman Mines plc presentations were given
to shareholders, these are available on the Company's website
www.vandiemanmines.com.

The reserve base is being reviewed continually as additional data is received.
In order to comply with the JORC code, the grades and pricing for the ancillary
products to the tin resource, primarily sapphires and spinel, are conservative.

The Company has also formed a joint venture with Columbia Gem House, V.
Columbia, to market the gem stones. The sapphire market in the USA is growing
and world prices for gem stones with provenance are currently increasing.

JORC Resources Statement

JORC                   Volumes (mn bcm)             Tin              Sapphire
Resource
Measured             Overburden     Ore       Grade    Contained    Contained
                                            (kg/bcm)   (t Sn02)      (mn cts)

Scotia                  24.86       5.32      1.30       6,916         10.64
Ringarooma              33.18       6.04      0.89       5,396         12.08
         
Total                   58.04      11.36                12,312         22.72

* based on a tin price of US$12,000/tonne and a sapphire price of US$16.00/gram


The first mine to commence production, around the turn of the year, is expected
to produce approximately 9,700 tonnes of tin and 21 million carats of rough, gem
quality sapphires. The gem stones will be sold to the 50/50 joint-venture
company, V. Columbia, at market prices. Van Dieman will also share the profit
generated by V. Columbia.

When the second mine, Endurance, comes on stream in 2008 production is expected
to double.

The current projects, Scotia and Endurance/Pioneer (Ringarooma) have measured
resources of 39 million m(3) with an estimated in situ value of A$480m. In
addition, the Company has the Great Northern Plains project with measured and
inferred mineral resources of, again, 39 million m(3) and, Offshore Resources of
199 million m(3), containing estimated 27,800 tonnes of tin. This has the
potential to double the output in 2009. The estimated in-situ value of the
inferred and measured resources of the Great Northern Plains are A$470m and of
the Offshore Resources A$440m.


Exploration and development

Over the past year as new data has been analysed the resource base has increased
significantly, as shown in the table above.

Stage 1 of mine development will be completed later this year when the Scotia
Mine comes into production followed by Endurance in the second half of 2008.
Stage 2 is the development of the Great Northern Plains where the measured and
inferred resource is expected to be upgraded in mid-2008. In addition, we expect
to be in a position to produce JORC estimates of the resources at the Pioneer,
Monarch, Wyniford, Boobyalla and Offshore tenements during 2008. The Directors
estimated planned development programme is set out in the presentations
available on the Company's website.


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

"I am very pleased with the progress that we have made in developing the
resource base. We have one mine about to commence production with two others
scheduled to come on-stream in 2008 and 2009.

"We are continually adding to our knowledge of the resource, which now has an
in-situ value of over A$1.3 billion, and expect to be in a position to further
increase the JORC figure later this year".

                                                                 24 August 2007

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 / Libby Moss



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. Thaisarco, the Thai tin smelter and refiner,
has agreed to take the Company's entire expected tin concentrate output of
1,350-1,500 tonnes contained tin per year once both the Scotia and Endurance
mines are in production. Agreements are also in place for the marketing of the
sapphire and spinel production.


The technical content of this press release has been reviewed by a Director of
Van Dieman Mines plc, Neil Kinnane, who has over 40 years experience in geology,
exploration and mining and is a Fellow of the Australasian Institute of Mining
and Metallurgy (AusIMM), Chartered Practising Geologist, Member of Geological
Society of America, Member of Geological Society of Australia, a recognised
professional association.


ENDS



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