Project Update

RNS Number:0489I
Van Dieman Mines plc
20 November 2007

                              VAN DIEMAN MINES PLC

                                   (AIM: VDM)

   *Treatment Plant Site Works Commence at Scotia Mine
   *Treatment Plant in transit from the USA
   *Earthmoving equipment delivered to site

Van Dieman Mines plc (AIM: VDM), the AIM listed mining company which is
developing its 100% owned tin - sapphire mines in Tasmania, Australia, is
pleased to announce that the primary treatment plant is currently in transit
from the USA and despite continuing un-seasonal, inclement weather the Company's
Gladstone staff continue to make excellent progress with pre-construction site
works.

The main access road to the Scotia treatment plant and workshop site and the new
culvert crossing of the Pig & Whistle lagoon are all but completed save for
minor drainage works and signage.

An Aboriginal Heritage site inspection has been completed and the consultant has
approved the area for all works listed under the DPEMP approval.

The primary treatment plant, in transit from the USA, is scheduled to arrive in
Tasmania during the week of November 19 2007. Work has commenced at the
treatment plant and workshop site at the mine and arrangements are well advanced
to complete pouring of the concrete footing pads in readiness for the treatment
plant whose delivery to site is scheduled to commence at the end of November.

The remaining units of the earthmoving fleet have been delivered to site. This
will allow the crew to commence ore pre-stripping and dam wall construction
during November/December while the treatment plant is being erected. From mid
December, on an ongoing basis, ore will be stockpiled adjacent to the treatment
plant site to provide feedstock for commissioning of the treatment plant in
February, with full production expected to be achieved during March.

Delays are being experienced with mains power connection. The power line
easement has been cleared and the erection of power poles is scheduled for the
end of November. The company is working closely with the supply authority,
Aurora Energy, to expedite their stringing of overhead cable and installation of
the supply sub-station in time for plant start up.

                                                                20 November 2007

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

"Despite un-seasonal weather in October, progress with site works at Scotia has
kept to schedule and delays in the conduct and receipt of Aboriginal Heritage
assessments have not affected works progress. Delivery of the remaining
earthmoving units will allow the crew to commence ore pre-stripping and dam wall
construction.

We are working closely with Aurora to ensure connection to the power grid in
time for start up. However we have all the stand-by generators on site and will,
if necessary, utilise those for short term power supply.

Orders have now been placed for the conveyors and while these will not be
delivered until late March production is not expected to be delayed, as it will
be achieved from ore stockpiled in the interim for that purpose."

ENQUIRIES:

VAN DIEMAN MINES plc                 Tel: [phone]
Clive Trist, Managing Director       Email: [e-mail] or
                                     [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 in full production
will produce annually an estimated 700 tonnes of tin and 1.5 million carats of
mine rough gem quality sapphire.

A six-year contract is in place with tin smelter and refiner, Thaisarco, for the
off-take at prevailing LME prices of the Company's entire tin concentrate output
from the Scotia and Endurance mines expected to be 1,350 - 1,500 tonnes of
contained tin per year. A joint venture marketing agreement is also in place for
the marketing of the sapphire and spinel production

NOTES:

1. DPEMP: the Development Plan and Environmental Management Plan required to be
lodged and approved prior to commencement of mining activities

The technical content of this announcement 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 recognized
professional association.



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