Magnetic Resources NL (ASX:MAU) Quarterly Report For The Period Ended 31 December 2009

Perth, Feb 1, 2010 AEST (ABN Newswire) - Magnetic Resources NL (ASX:MAU) is pleased to provide a Quarterly Activities Report for the period ended 31 December 2009.

IRON ORE

JUBUK (Magnetic 100%)

The Jubuk iron ore project area near Corrigin has been significantly enhanced during the quarter with the receipt of testwork, the completion of a large regional airborne magnetic and radiometric survey and commencement of drilling.

As previously announced, (ASX release 5 January 2010), Magnetic has completed an airborne regional magnetic and radiometric survey over the 650sq km Jubuk project area. This survey totalled 4,628 line-km at 100m or 200m line spacings. Preliminary interpretation of the data has defined five main target areas covering 70km of potential iron formations.

Target 1 encompasses the Jubuk outcropping, coarse grained, recrystallised banded iron formation (BIF) which covers a strike length of 1.4km and forms a prominent hill.

The prospective iron targets have now been extended to 12km in length. Modelling of the ground magnetic data obtained during the previous quarter has been carried out to refine drilling targets. A ten-hole, 1,200m programme of RC/diamond drilling program to test the priority Jubuk area has commenced.

Target 2 is located only 2km west of the Jubuk Target 1 and contains 17km of potential iron targets. One iron target is 9.5km long and up to 350m wide.

Preliminary sampling is planned here, prior to drilling in the near future.

Target 3 located 5km south east of Target 2 contains 5.6km of potential iron targets.

Preliminary sampling of any outcropping units is also envisaged. The tenement and access agreements encompassing Target 1, Target 2 and Target 3 have been granted and signed respectively, paving the way for follow up activities in the short term.

Target 4 is approximated 8km west of Target 2 and contains 11.2km of potential iron targets one of which is 5.5km long and 200m wide.

Target 5 is 5km north of Target 1 and contains 10.3km of prospective iron targets, one of which is 3.7km long and contains two separate zones 200m in width.

The eastern end of Target 3 is approximately 15km from the Corrigin railway line and Target 5 is approximately 15km south of the Quairading-Bruce Rock railway line, highlighting the proximity of this project area to established infrastructure.

DAMPLING SPRING AND HARRIS (Magnetic 100%)

Access agreements covering the main target areas have been signed. Modelling of ground magnetic data over the target aeromagnetic anomalies has commenced, in order to define drilling targets in these soil covered areas. The target area at Dampling Spring is some 6km in length while at Harris the zone of interest extends over a strike length of about 4.5km.

NEW ACQUISITIONS (Magnetic 100%)

Following the success of the aeromagnetic survey in identifying specific iron ore targets in an area of poor existing aeromagnetic coverage at Jubuk, Magnetic carried out a review of other areas where the geology appears to be favourable (i.e. potential greenstone sequences and BIF in high grade metamorphic terrane) and where existing wide spaced aeromagnetic data indicate iron ore potential close to good infrastructure.

As a result, Magnetic has applied for tenements over numerous potential iron ore targets, including mapped BIF occurrences, in the region extending from Lake Grace to Dalwallinu, increasing its ground holdings for iron to some 4,750sq km. Field reconnaissance and preliminary sampling of the BIF occurrences is about to commence.

Magnetic is currently obtaining quotes fly high resolution aeromagnetic and radiometric surveys over these broad target areas in order to identify specific targets for follow up sampling and drilling. Magnetic's objective is to continue to seek to identify iron ore that can readily be upgraded to a quality product in areas of good infrastructure and close to ports, thereby enhancing the potential to commercialise any discovery.

URANIUM

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

Geochemical sampling has identified a second 2km-long anomalous uranium zone approximately 5km SW of the previously reported uranium anomaly and in a similar drainage setting (ASX release 26 November 2009). The soil anomaly ranges from 15ppm to 40ppm uranium compared to a background of 7ppm uranium. Environmental and OH&S permitting for proposed drilling of these targets has now been received and is now anticipated to commence in February.

Geochemical sampling is in progress on other several uranium targets identified at Seabrook.

26 MILE ROCK (Magnetic 100%)

Geochemical sampling has been completed to assess a 5km-long radiometric anomaly situated on a salt lake margin and analytical results are awaited.

GOLD

As reported in the previous quarter, 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 .

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. Soil sampling to define drill targets has commenced on properties where access agreements have been obtained.

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. Negotiations are in progress with landowners for access in the Lake Grace and Holland Rocks tenements and sampling is planned to commence in the near future.

CORPORATE

During the quarter Magnetic placed 5,895,000 fully paid shares at an issue price of 16.5 cents per fully paid share, raising A$972,000 before costs (ASX release 23 October 2009). The shares were placed to a combination of sophisticated and professional investors.

For the complete Magnetic Resources Quarterly Report for the period ended 31 December 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/62189-ASX-MAU-478332.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