Resource applications

RNS Number:6365I
Van Dieman Mines plc
17 February 2005


                         VAN DIEMAN MINES PLC (AIM:VDM)

Van Dieman lodges applications for additional tin and sapphire resources in
Tasmania, Australia

Van Dieman ("Van Dieman" or "the Company") successfully raised #3.32m on
admission to AIM in London during November 2004 and is now devoting these funds
towards the development of mining operations at its alluvial tin and sapphire
resources in Tasmania. The Company is pleased to announce significant progress
in expanding its tin and sapphire portfolio, following applications lodged for
three new Exploration Licence Areas adjoining its main minerals tenements in NE
Tasmania, Australia. Van Dieman's AIM listing is the Company's sole public
listing globally.

Highlights

   * The additional resources in the three new tenement areas applied for
     form potentially important extensions to the existing tin and sapphire
     resources to be exploited by Van Dieman on its key Scotia and Endurance
     licence areas.

   * Boobyalla, the largest (24 sq.km) of these new tenements, contains three
     old alluvial tin mine workings that were the subject of extensive previous
     exploration programmes.

   * The Mayfield tenement (16 sq.km) adjoins the Company's Scotia resource.
     Recent work undertaken by Van Dieman has confirmed that the main tin and
     sapphire bearing lead continues northwards through this new tenement from
     the existing Van Dieman resource.

   * The three blocks (14 sq.km) within the Central Ringarooma tenement are
     strategically located, serving to protect future extension for Van Dieman
     and potentially adding substantially to the defined mineral resources at 
     its existing projects.

   * Van Dieman's strategy for the next two years centres around establishing
     stable mining operations at Scotia and Endurance, optimising minerals
     extraction and processing and establishing reliable outlets for the mine
     production at premium pricing.

   * The Company also intends to complete exploration in zones around the
     resources at Scotia and Endurance and then to commence exploration of its
     adjacent Great Northern Plains tenements to confirm their economic viability
     for mining.

Commenting today on this news and on progress since Van Dieman's admission to
AIM, Clive Trist, Managing Director, said:

"Van Dieman is now on course to develop tin and sapphire production from its
existing assets by Q4 2005 and this remains our primary commitment, as set out
in our prospectus at the time of our AIM listing. These licence applications
will help to underpin Van Dieman's long term strategy and derive further value
for the Company's shareholders".

                                                               17 February, 2005
For more information
Clive Trist, Van Dieman Mines                 Tel: [phone]
Laurence Read/ Leesa Peters, Conduit PR       Tel: [phone]
                                              E-mail: [e-mail]

BACKGROUND INFORMATION

VAN DIEMAN MINES PLC

Van Dieman owns, through its 100% subsidiary Van Dieman Australia, thirteen
exploration licences which lie within the north east Tasmanian tin region that
stretches from the Blue Tier granite massif in the south through to the north
and north east coasts and into offshore Bass Strait of Australia. This region
has been a significant contributor to the overall production of tin and precious
stones in Tasmania. Historical records up to 1980 indicate that in excess of
40,000 tonnes of tin has been recovered from the region, most of it from
alluvial operations.

An independent technical review confirmed resources in excess of 100 million
cubic metres at three of the licences - Scotia, Central Ringarooma and great
Northern Plains. Of this 51.2 million m3 is in the measured category, (11.5
million m3 in Scotia and Ringarooma; 39.7 million m3 in Northern Plains) and
27.5 million m3 are in the inferred category.

The Company will use the funds raised in its recent AIM flotation to commence
production by Q4, 2005 at the tin and sapphire bearing - Scotia and Central
Ringarooma licences, estimated to have a 15 year mine life. This will be
followed by the development of the Fosters Marsh resource (34.1 million m3) and
by additional exploration programmes over the Great Northern Plains licence. The
Company's alluvial mineral resources encompass a number of discrete project
areas - Endurance and Pioneer form part of the Central Ringarooma area and are
"stand alone" projects whilst others including the Scotia, Great Northern Plains
and Offshore licences are linked together such that they each form one part of a
major resource area.

After allowing for project and supplier funding and use of equipment leasing and
financing facilities the Company estimates that the total cost of putting the
Scotia and Central Ringarooma deposits into production will be #1.4m. Plant and
equipment estimated at #5.4m will be debt funded from operating leases and /or
dry hire of equipment and initial discussions with plant hire companies and with
the potential lenders of debt finance have been undertaken.

Van Dieman's strategy for the next two years centres around establishing stable
mining operations at Scotia and Endurance, optimising minerals extraction and
processing and establishing reliable outlets for the mine production at premium
pricing. The Company also intends to complete exploration in zones around the
resources at Scotia and Endurance and then to commence exploration of the Great
Northern Plains tenements to confirm economic viability for mining.


TENEMENT APPLICATIONS JANUARY 2005

ELA 57 / 2004 - BOOBYALLA PLAINS

This tenement encompasses an area of 24 sq.km immediately adjoining to the west,
the tin and sapphire resource areas of the Great Northern Plains (Fosters and
Braithwaites). The tenement contains three old alluvial tin mine workings, Dry
Gut, Dugard's and Delta that were the subject of previous exploration programmes
conducted by Endurance Tin Mining, Rio Tinto Australia and the Utah Development
Company. The latter group carried out the most comprehensive programme drilling
some 27 holes for 460 metres and this information is now in the Van Dieman data
bank.

The Utah geologists reported that they believed the area around Dugard's
workings could contain a dredgable resource of some 23 million cubic metres at
grades of around 175 gm / m3 SnO2

ELA 58 / 2004 - MAYFIELD

This tenement encompasses an area of 16 sq.km immediately to the north and
adjoining the Scotia resource. Recent work undertaken by the company in
converting paper data bases into a GIS electronic format has shown that the
Scotia - Scoloch Tin and Sapphire bearing lead did not enter the Great Northern
Plains marine embayment via the Braithwaites resource area. Instead it flowed
more northwards and entered the marine embayment midway down the western side of
the Fosters resource zone.

By applying for this tenement Van Dieman has secured a postulated extension
which could add a substantial volume of Tin and Sapphire bearing material to the
Scotia and Fosters resource base.

ELA 59 / 2004 - CENTRAL RINGAROOMA

This tenement has been taken as three separate blocks totalling some 14 sq.km.
These comprise specifically:

   * BLOCK 1 - MONARCH

     This section encompasses an area of 4 sq.km immediately adjoining the south 
     west and southern sections of the Monarch Project area (EL 10 / 2000)

   * BLOCK 2 - ENDURANCE

     This section encompasses an area of 4 sq.km immediately adjoining to the 
     west of the Endurance Mine measured resource (EL 11 / 2000)

   * BLOCK 3 - PIONEER

     This section encompasses an area of 6 sq.km immediately adjoining to the 
     west and south west of the Pioneer Project area (EL 12 / 2000)


The locations of these three new tenements are shown on the map
(please see pdf link);

http://www.rns-pdf.londonstockexchange.com/rns/6365i_-2005-2-15.pdf


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            The company news service from the London Stock Exchange

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