Magnetic Resources (ASX:MAU) Quarterly Report For The Period Ending 30 September 2009

Perth, Nov 2, 2009 AEST (ABN Newswire) - Magnetic Resources (ASX:MAU) is pleased to present its September 2009 quarterly activities report.

Magnetic Resources is continuing to test gold, iron, nickel and uranium targets on its extensive holdings in the wheatbelt (southern Yilgarn Craton) region of WA. Magnetic is continuing to rationalise these holdings as it focuses on the best targets.

URANIUM

During the quarter Magnetic Resources applied for exploration tenure over four new areas prospective for uranium mineralisation totalling 340sq km, bringing Magnetic's uranium-focussed land position to 752sq km.

SEABROOK (Magnetic 80%, earning up to 100%)

Following early encouragement from sampling for uranium, sampling of lake sediments and lake margins has continued within the expanded project area. This sampling has extended the area of uranium anomalism on exploration licence E77/1291.

Magnetic's sampling has been recently extended across the Bronte (E77/1673, Magnetic 100%) and Deborah East (E77/1675, Magnetic 80%) tenements. The results of this sampling have yet to be received.

Application has been made for approval to undertake reconnaissance air-core drilling over uranium targets on several of the salt lakes and their margins. Discussions regarding the environmental permitting of this work are continuing.

MOUROUBRA (Magnetic 100%)

Mouroubra (E59/1614) is situated 50km south of Paynes Find covering airborne radiometric anomalies on the eastern side of Lake Moore.

Reconnaissance sampling has returned anomalous values of 870ppb U in ground water within the Lake Moore drainage system in a similar setting to Seabrook. The strong radiometric anomalies, together with the anomalous uranium geochemistry indicate potential for significant uranium enrichments within reducing environments associated with the Lake Moore drainage system. Follow up sampling to test the nature and extent of the uranium anomaly is being planned.

MUNBINIA (Magnetic 100%)

Munbinia (E59/1615 and E59/1623), is situated about 50km west of Mt Magnet. The tenements cover the junction of two interpreted palaeo-channels, each with anomalous airborne radiometric responses. Significantly, the radiometric responses coincide with extensive areas of mapped calcrete. Calcrete can form a favourable host to shallow, high grade secondary uranium mineralisation.

Preliminary sampling has been carried out with analysis of these samples currently in progress.

JUMPING JACK (Magnetic 100%)

Jumping Jack (E59/1616) is situated 75km west of Mt Magnet. Airborne radiometric data show a substantial area of uranium anomalism located just north of an area of mapped calcrete and surrounding a small lake which may represent a meander in a palaeo-channel system. Meanders can create favourable areas for accumulation of organic material which may result in the precipitation of uranium from solution to form shallow secondary uranium deposits.

Magnetic is planning to complete a reconnaissance sampling program during the next quarter, to assess the potential for shallow secondary uranium mineralisation.

IRON ORE

The Jubuk iron ore project area near Corrigin has been significantly increased, to cover additional magnetic target identified in the surrounding area. The wide-spaced nature of the regional aeromagnetics in this area suggests there may be potential for other metamorphosed, coarse grained magnetite occurrences associated with magnetic anomalies. Magnetic plans to complete a detailed aeromagnetic survey over the expanded tenement area to identify specific target areas. The aeromagnetic coverage currently available was acquired in the 1970's with a flight-line spacing of 1.6km.

magnetite prospect have been received. The samples used for the preliminary testwork were taken from four discontinuous chip sampling traverses mostly taken across the strike of the outcropping coarse-grained, recrystallised Jubuk banded iron formation. The four samples were taken within a strike length of 1.4km.

The sample results (average 37.9% Fe over 64m length) indicate significant widths of magnetite-bearing iron formation correlating with a strong magnetic anomaly outlined by ground magnetic surveys. Magnetic is targeting 200-300 million tonnes of coarse grained magnetite-bearing iron formation within the central 10km zone of the stronger magnetic anomalies. This target tonnage is based on surface sampling, aeromagnetics and ground magnetic surveys. The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource at this stage.

The results indicate that a high iron product with low phosphorus content can be achieved and that some of the near surface magnetite appears to be weathering to other iron oxides, reinforcing the need to obtain fresh rock samples for further testing.

A programme of RC and diamond drilling is being planned once cereal cropping has been completed towards the end of the year.

Magnetic recently signed a land access agreement over the central part of the area of interest, paving the way for this drilling to proceed. As previously reported, Magnetic has qualified for a state government grant of A$45,000 towards exploratory drilling at Jubuk, supporting the merit of this iron ore target.

GOLD

Magnetic has reached an agreement with Pacific Ore Limited (ASX:PSF) on two granted exploration licences at Tampia North near Merredin and on two granted exploration licences and one exploration licence application near Lake Grace, WA (PSF ASX release 20 August 2009).

The Tampia North tenements, where Magnetic holds an 80% interest with rights to earn a 100% interest, cover a 30km strike on an interpreted shear zone where gold anomalies and indications of gold mineralisation have been outlined by geochemical sampling and shallow drilling.

The Lake Grace and Holland Rocks tenements, where Magnetic holds a 100% interest, cover a cumulative 60km strike length of an interpreted shear zone where geochemical sampling has identified several gold-anomalous areas and where limited historical drilling reported a best intersection of 1m @ 34g/t Au from 94m.

Under the terms of the agreement Pacific Ore may earn a 51% interest in the 320sq km tenement package by expenditure of A$550,000 within three years. Pacific Ore must spend a minimum of A$150,000 on the tenements before having the right of withdrawal. A programme of follow up geochemical sampling and drilling is being planned, after completion of cropping on these broad acre farm areas.

For the complete Magnetic Resources Quarterly Report for the period ending 30 September 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/61684-ASX-MAU-467252.pdf

Contact

George Sakalidis Managing Director Tel: +61-8-9226-1777 Mob: +61-411-640-337 Email: george@magres.com.au Roger Thomson Technical Director Tel: +61-8-9226-1777 Mob: +61-419-969-183 Email roger@magres.com.au