BLIA MINE : 23 Aug 2011 Mongolian Exploration Programme to Commence

ASX ANNOUNCEMENT

23 August 2011 MONGOLIAN EXPLORATION PROGRAMME TO COMMENCE


Highlights

? 1,400m drilling campaign to commence this week within the Bayanburd Copper Gold licence

? Results expected end of October

? Programme aimed to test existence of a primary source of copper and determine extent and concentration of mineralisation

Blina LLC (Blina), the Mongolian subsidiary company of Blina Minerals NL (Blina Minerals) (ASX: BDI), is pleased to announce that drilling operations will commence this week on the Bayanburd Copper Gold licence in Bayankhongor Province of Central Mongolia. Two drill rigs are on site and the crews are currently moving into the field.The central portion of the licence area received intense geological inspection in 2008, at which time a Central Zone of strong copper/gold mineralisation was noted. Flanking the Central Zone to the east and to the west are two other areas of diffuse mineralisation which are poorly understood at this time and, as such, the work to date focussed on the three zones of mineralisation identified in 2008. Following a month and a half of intense rock chip sampling, structural mapping work and a review of the results of an earlier geophysical programme, drill sites have been defined and drilling will commence on these areas first. Once results of these holes are known the company will refine its drilling programme.The drilling programme has allowed for 1,400m of diamond drilling and will look to identify the geological controls around the mineralisation as part of efforts to identify a primary copper source.The property is located some 500km to the south east of Ulaanbaatar. Locally the site is located 39km south of the Provincial Capital of Bayankhongor, and 15km south of the County seat. Access and infrastructure are excellent, the national power grid passes through the property, and the local population is pro-mining.Once the results of the drilling programme are known, the Board of Blina will assess the project?s standing and potential ahead of deciding whether it will exercise its right to own 51% of the project for a sum of US$400,000 and whether to spend more money on further exploration in 2012, to acquire an even greater percentage of ownership in the project.

BLINA MINERALS NL ABN 25 086 471 007

Level 3, 52 Kings Park Road West Perth Western Australia 6005 PO Box 806 West Perth WA 6872

T +61 8 9426 9888 F +61 8 9426 9899 E general@blinaminerals.com.au W www.blinaminerals.com.auFigure 1 ? Project locationAbout the Kharganat Copper Gold Project

On 14 May 2011, Blina Minerals concluded a Binding Term Sheet with a Mongolian Company - BSI LLC (BSI) - to explore a prospective Copper Gold property in Mongolia. BSI is the sole holder of the licence area located in the territory of Ulziit Soum, Bayankhongor. If Blina Minerals acquires an interest in the licence area, it will be held through a joint venture company which in turn owns the licence and licence area.Through this Binding Term Sheet, Blina Minerals has negotiated an interest in a property formally known as the Kharganat Copper-Gold Prospect (Project). The Project?s licence area is located in the Bayankhongor region of Mongolia, some 500km to the south west of Ulaanbaatar - the capital of Mongolia. The Bayanburd (12628X) licence area covers some 21,091 hectares.The property is prospective as the surface expression of the copper mineralised linear stock work veining may indicate the existence of a deeper porphyry type system. The property has been prospected by Russian Geologists in the 1940?s on areas which contained old Chinese workings. The eastern part of the Tuin Gol River was covered by 1:500,000 scale geologic-hydro geological mapping by Russian explorers in 1940. During 1:1,000,000 scale geological mapping in the Bayankhongor region, Russian geologists visited this region in 1963 and provided a geological sketch map of the area. In 1966, the region was covered by 1:100,000 scale geological mapping by German geologists who identified the Tsagaan Tsakhir Uul granitoid related gold deposit and several other mineralised zones, ore showings and geochemical anomalies of gold and copper. The Kharganat prospect area

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was covered by 1:200,000 scale geological mapping and prospecting by Russian and Mongolian geologists in 1984. During this geological investigation, several gold, tungsten geochemical anomalies and few copper, gold, silver ore showings were identified in the Bayanburd licence area. The region was recommended for detailed geological investigations, specifically for placer gold. Further geological mapping and prospecting by Mongolian geologists in 1984 identified a few small gold and copper ore showings as well as some geochemical anomalies. In autumn 2007, BSI carried out a reconnaissance survey on the exploration licence area, using regional geological mapping and prospecting, associated with rock chip sampling. As a result of these reconnaissance surveys, geologists from BSI identified several intensive copper-gold mineralization zones in the Bayanburd exploration licence area and recommended these for detailed exploration. The main mineralised area was named ?Kharganat? copper-gold prospect in the Bayanburd licence. In early 2008, the companycarried out detailed exploration on the Kharganat prospect, covering 34km2 area (8.97km by 3.9km), using detailed geological mapping and prospecting, geophysical and geochemical survey, petrographic and mineralogical techniques.EndsFor further information, contact:Mr Alistair Croll ? Managing DirectorTel: +61 8 9426 9809

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