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Emperor signs Indonesian Alliance Agreement

Tuesday, August 21st, 2007

Emperor Mines Limited reports that it has signed an Alliance Agreement with a group of Indonesian and Australian investors to explore a large gold-silver-copper project in eastern Java.
The Alliance Agreement between Emperor Mines, Indonesian company PT Indo Multi Niaga and BVI company IndoAust Mining Limited sets out the framework for entering into a Joint Venture Agreement and undertaking further exploration on a property of approximately 116km2 located in the Southeastern portion of Java.
The agreement paves the way to a full Joint Venture Agreement, which would see Emperor spend up to A$5million over five years, to earn a 51% interest in the project. An option exists for Emperor to earn a further 19% interest in the project by funding additional exploration. Emperor may then fund Feasibility studies to a capped amount, subject to certain conditions including the obtaining of relevant permits and licences.
Emperor Mines Limited Executive General Manager – Exploration and New Business, Malcolm Norris, said that the property has been previously explored and drilled by Golden Valley Mines and by Placer Dome during 1999/ 2000, with highly encouraging results.
“Historical drilling has defined a broad zone of approximately 2km x 2km of near surface Au-Ag mineralisation at the site, which will be the focus of ongoing drilling activity under the Alliance Agreement during the remainder of 2007 and early 2008,” Mr Norris said.
“We undertook diligence reviews of this prospect and the associated alliance agreement in June and July of this year, and are pleased to have now confirmed our position as an alliance partner in the project.
The Au-Ag system is interpreted as an upper level high-sulphidation system, overlying a porphyry copper system. Previous drilling results include:
– 278.6m @ 0.53g/t Au, 29 g/t Ag, which includes 24m @ 1.55g/t Au, 106g/t Ag;
– 87m @ 1.81g/t Au & 12.66ppm Ag, which includes 15m @ 6.24g/t Au, and;
– 48m @ 1.9g/t Au.
The porphyry system, which outcrops adjacent to, and below, the drilled gold-silver system is mineralised with rock chip sampling returning results of 47m @ 1.29%Cu and 1.71 g/t Au.
Mr Norris said that on-site preparations for further drilling are complete and drilling will commence as soon as possible.
Additional targets and zones of Cu-Au anomalous stream sediment samples exist in areas adjacent to the drilled zone and these will be further explored with a view to defining additional drill targets as soon as possible.
Emperor Mines Chief Executive Officer, Brad Gordon, said that the project was an exciting opportunity for the company, and formed an important part of the company’s plans to rebuild its asset portfolio.
“This project is consistent with Emperor’s plans to expand into the South-East Asian region, and while still focusing on gold as the major metal target, does provide diversification into silver and copper,” Mr Gordon said.
“The project is now at an advanced exploration stage and through this agreement we will accelerate work on the project to determine defined resources as quickly as possible,” he said.

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