Adamus Resources Limited - Project Development Update



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    PERTH, Western Australia, March 29 /CNW/ - Adamus Resources Limited
("Adamus" or the "Company") (ASX and TSXV: ADU) continues to advance its
Southern Ashanti Gold Project ("Project") by assessing its near term
production capacity whilst further enhancing its gold resources.

    Feasibility Progress

    Adamus is continuing to progress its feasibility study into the
development of the Project and the results of the base case study are
currently in review, with the Company targeting completion of the feasibility
study by the end of April 2007. On completion, the Company will report the
feasibility study results. Activities in relation to resettlement and crop
compensation will be ongoing.

    Exploration Program

    In conjunction with completing its feasibility study, the Company is also
undertaking an extensive exploration program, including 30,000m of drilling,
for the remainder of 2007. The exploration targets are identified in the
Project Overview (refer Appendix 1
http://files.newswire.ca/407/SouthernAshantiGold.doc). The immediate focus is
at Anwia and Anwia South.

    Anwia - The current drill program, targeting deeper mineralization at the
Anwia Deposit, is nearing completion and the latest results will be released
as soon as they become available. The program is designed to extend and infill
mineralization on the margin of higher gold price pit designs. Recent results
included an intersection of 15m @ 24.4g/t gold at a vertical depth of only
115m, which clearly highlights the potential for further mineralisation beyond
the current resources.

    Anwia South - Immediately following completion of the Anwia program, the
Company will commence a new phase of exploration activity at the Anwia South
Project (refer Appendix 2
http://files.newswire.ca/407/SouthernAshantiGold.doc). A drill program at
Bokrobo (Atom prospect) will aim to extend the strike length and down-dip
extents of mineralisation and permit an initial estimate of gold resources. At
the nearby Aliva and Abosso areas, a first-pass RC drill program will test
targets delineated by soil geochemistry and trenching. The Company has also
commenced a soil sampling program in the northern half of the Anwia South
Project, an area that has previously not been targeted by the Company.

    Ghana Electricity Grid

    The majority of electricity supplied to the power grid in Ghana is
generated by the Volta river hydroelectric scheme. Low water levels at the
Akosombo dam have resulted in the disruption of this supply to domestic,
industrial and mining companies throughout Ghana, during the past number of
months.
    The Company is aware of reports from several operators in Ghana currently
experiencing power curtailments to their operations, resulting in the need for
alternative power generation to satisfy their demands. In some instances up to
50% of required power is being generated on site at a significant increase in
operating costs. A four-party consortium of gold producers is currently in the
process of installing an 80MW diesel-fuelled electricity generation facility
to continue to maintain supply to their respective operations at normal
levels. Operating costs are expected to be significantly higher than utilising
grid power.
    Adamus' Project is located within close proximity to the Ghana power
grid, which the Company intends utilising for electrical power to the Project.
The Company is in the process of evaluating the potential impact of the power
shortage situation on its feasibility study. Relevant factors include future
rainfall, the projected frequency of future outages and the timing and
eventuality of Ghana government alternative supply initiatives, including the
West African Gas Pipeline and Bui hydroelectric scheme.
    Further study is being undertaken to more accurately assess the specific
risk to Adamus and evaluate mitigation strategies. This includes examining the
feasibility of commissioning self-sufficient power facilities to support full
scale development and ongoing operations.
    Detailed information on all aspects of the Company's activities can be
found on the Company's comprehensive website www.adamusresources.com.au.

    Kind regards
    ADAMUS RE

SOURCES LIMITED Ian Cunningham -------------- COMPANY SECRETARY The TSXV does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Information in this announcement pertaining to exploration results was compiled by Gary Brabham, a director of Adamus, who is a Member of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists and has more than 5 years experience in estimation of recoverable resources in gold deposits. He qualifies as a "Qualified Person" under Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Gary Brabham has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the JORC Code. Gary Brabham consents to the inclusion in the announcement of the matters based on this information in the form and context in which it appears. The TSXV does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Caution Regarding Forward Looking Statements Statements regarding Adamus' plans with respect to its mineral properties are forward-looking statements. There can be no assurance that Adamus' plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Adamus will be able to confirm the presence of additional mineral deposits, that any mineralization will prove to be economic or that a mine will successfully be developed on any of Adamus' mineral properties.

For further information:

For further information: Ian Cunningham, Company Secretary, +61 8 9322
5943, ian@adamusresources.com

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ADAMUS RESOURCES LIMITED

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