Pluton Resources Limited (ASX:PLV) Announces Irvine Island Assay Results

Melbourne, May 26, 2010 AEST (ABN Newswire) - Pluton Resources Limited ("Pluton") (ASX:PLV) has received final assay results from drill holes ID6B and ID12B from the current Phase II drilling program on Hardstaff Peninsula, Irvine Island, Western Australia (E04/1172).

Summary

- Vertical drill hole ID6B intersects 18m @ 46.63% iron in the target Yampi Member.

- Two intersections of 28m @ 25.3% iron and 16m @ 25.7% iron are returned from the overlying Wonganin Sandstone in drill hole ID6B.

- Vertical drill hole ID12B intersects 17m @ 46.8% iron (including 7m @ 53.3% iron) in the target Yampi Member

- Three intersections of 19m @ 27.2% iron, 8m @ 26.1% iron and 12m @ 26.3% iron are returned from the overlying Wonganin Sandstone.

- Resource model update for the Yampi Member and Wonganin Sandstones pending.

Background

Phase II drilling on Irvine Island is targeting an extension to an Inferred Resource of 54Mt @ 49% iron (Fe) identified from drilling in 2008. Phase II drilling is targeting a total of >100Mt at Hardstaff Peninsula of mixed grade Direct Shipping Ore and feed ore for beneficiation, and up to a further 30Mt of predominantly Direct Shipping Ore from the Isthmus region.

Phase II drilling is primarily targeting iron mineralisation contained within the Yampi Member. This is the same rock unit that is mined on the adjacent Cockatoo and Koolan Islands.

CSIRO test work has shown that additional concentrate can be produced from rocks overlying the Yampi Member. These rocks are referred to the Wonganin Sandstones. The Wonganin Sandstones were originally considered as waste, but feed materials grading between 25.4% iron and 32.2% iron have yielded concentrates of >66% iron (Fe).

The iron mineralisation contained within the Wonganin Sandstone is now considered as an additional resource target to the Yampi Member.

Conclusion

Results from the Yampi Member in drill holes ID6B and ID12B continue to confirm that iron mineralisation in the target Yampi Member increases in thickness towards the west when compared to the intersections reported previously in drill holes ID29 and ID 33 located on the eastern side of Hardstaff Peninsula (see announcement dated March 19, 2010).

Five intersections from the overlying Wonganin Sandstone return iron grades that would be suitable as feed ores for concentration as indicated by previous CSIRO test work results. Higher feed grades can ultimately result in higher mass recoveries and lowered costs during iron concentration.

Levels of impurities other than silica remain universally low.

Drilling on Irvine Island is continuing. Samples have been submitted for drill holes ID6A and ID6C. These holes are located in the western area of the Hardstaff Peninsula and outside the current Inferred Resource area of 54Mt @ 49% iron (Fe). Assay results are pending.

Said Managing Director, Mr Tony Schoer, "We continue to drill well outside of the current Inferred Resource envelope. Our results to date indicate that we are on track to reach our target of >100Mt for the Yampi Member at the Hardstaff Peninsula. It is particularly encouraging that we are seeing increasing volumes suitable to produce a high quality concentrate."

"Work has commenced with Australian Mining Consultants to update our existing resource model. We look forward to releasing an updated resource for the Yampi Member and our maiden resource estimate for the overlying Wonganin Sandstone."

For the complete Pluton Resources Limited announcement including Result Tables, please view the following link:

http://www.abnnewswire.net/media/en/docs/62955-ASX-PLV-336863.pdf

Contact

Mr. Tony Schoer Managing Director and Chief Executive Officer Mob: +61-411-232-711 Email: tschoer@plutonresources.com