Braemore Resources - acquisition of portfolio of Nickel Sulphide projects

BRAEMORE RESOURCES PLC

("Braemore" or the "Company")

Acquisition of Portfolio of Nickel Sulphide Projects

Braemore Resources plc (AIM: BRR), announces that it has exercised an option at nominal cost to acquire a 90% interest in each of seven sulphide nickel projects in South Africa from the Company's major shareholder, Atomaer Holdings Pty Ltd ("Atomaer").

The Managing Director of the Company, Mr Clayton Dodd, said that the transaction is the second stage in Braemore's strategy of identifying, acquiring, evaluating and developing projects that, in the opinion of the Directors, have the potential to host substantial quantities of nickel.

One of the sulphide nickel projects in the portfolio is reported in "Mineral Resources of South Africa" by the Council for Geoscience to have a large inventory of metal in a low-grade disseminated sulphide deposit containing nickel and copper. The publication by Geoscience also reports a large low grade nickel copper sulphide deposit approximately 12 km from that project which is included in the portfolio.

"The Company plans to proceed immediately with an evaluation of these projects, including an initial phase of drilling upon grant of mineral rights", Mr Dodd said.

The nickel sulphide projects are the subject of applications for mineral rights under the Mineral and Petroleum Resources Development Act ("Act").

Over the last 2 years, Braemore's parent company, Atomaer, has been engaged in the identification, evaluation and acquisition of areas with identified sulphide nickel mineralization and resources through applications for minerals rights arising under the new Act and Mining Charter in South Africa.

The portfolio of nickel sulphide projects is held in project companies which have acquired interests in seven project areas with in-situ sulphide nickel mineralization identified from previous exploration by companies including Anglo American Prospecting Services (Pty) Ltd, Anglovaal Limited, and Newmont in the 1970's.

The sulphide nickel projects are subject to an agreement between Atomaer and Amber Mountain Investments (Pty) Ltd ("Amber") which provides for Amber to retain a 10% interest in each project free carried to commercial production. The 90% interest of each project company in each project will be diluted by up to 26% on commercial terms to provide for participation by historically disadvantaged South Africans in accordance with the Act and Mining Charter.

Mr Dodd said that Braemore decided to exercise its option to purchase those project companies at a nominal cost in accordance with agreements entered into by Braemore and approved by shareholders in July 2005.

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