Equatorial Resources Limited (ASX:EQX) Commences Drilling At Mayoko-Moussondji Iron Project

Perth, Mar 31, 2011 AEST (ABN Newswire) - Equatorial Resources Limited (ASX:EQX) is pleased to advise that drilling has commenced at the Company's 100% owned Mayoko-Moussondji Iron Project in the Republic of Congo. The Company has contracted Partners Drilling International from South Africa to perform shallow Reverse Circulation and Diamond drilling to focus on weathered itabirite zones with the potential to host "hematite cap" mineralisation that is expected to overlay a large magnetite rich itabirite ore body.

The initial drilling program will target potential "hematite cap" mineralisation at the Company's Makengui Prospect. Makengui is one of five main prospects at Mayoko-Moussondji which total more than 46km of potential iron strike identified from the airborne geophysics program conducted in late 2010.

The Makengui Prospect is 12km long, up to 2km wide and lies 500m from the existing bulk haulage railway line that connects the project to the port at Pointe-Noire. Rock chip samples collected at Makengui have graded as high as 60.5% Fe and indicate significant zones of hematite enrichment.

The drilling program is focused on identifying the potential for direct shipping ore ("DSO") to enable the rapid development of a start-up project based on the Company's access to the existing rail and port infrastructure.

Equatorial's Exploration Target at Mayoko-Moussondji has been estimated at 2.3 to 3.9 BILLION TONNES1 of iron mineralisation at an expected grade of between 30% to 65% Fe. This target comprises of:

- Potential enriched "hematite cap" iron mineralisation estimated to range between 500 to 900 MILLION TONNES1 at a grade of 40% to 65% Fe; and

- Primary itabirite iron mineralisation estimated to range between 1.8 to 3.0 BILLION TONNES1 at a grade of 30% to 45% Fe.

Equatorial has worked closely with resource industry consultants CSA Global ("CSA") to design the drill program. A team of CSA geologists, highly experienced in African resource projects, are now on-site at Mayoko-Moussondji assisting Equatorial's geological team in overseeing the drill program.

Mr John Welborn, Managing Director and CEO, said "We are delighted drilling has commenced at Mayoko-Moussondji where we have the potential to identify significant quantities of direct shipping ore that can be transported on existing infrastructure to world markets. This marks the start of an extensive drilling campaign that will continue all year and will be expanded as additional drill rigs become available.

In a period of less than nine months since acquiring the Project we have made enormous progress in our goal of defining and developing a globally significant iron project."

For the complete Equatorial announcement including figures, please view the following link:
http://www.abnnewswire.net/media/en/docs/535561.pdf

Contact

John Welborn Managing Director & CEO Tel: +61-8-9322-6322 Email: info@equatorialresources.com.au http://www.equatorialresources.com.au