ASX and Media Release

29 January 2009

INITIAL INFERRED RESOURCE OF 13.8 Mt @ 53.9% Fe AT CARAMULLA SOUTH

KEY POINTS

?                     Initial 'Inferred Mineral Resource' of 13.8Mt @ 53.9% Fe at Caramulla South

?                     Strategic location, bordering BHP Billiton's tenements and only 19km from BHP Billiton's Jimblebar iron ore mine and rail head

?                     Additional positive drill results, received after completion of the resource estimate, include:

                                34.6m @ 57.65% Fe from 2m (WRKDD001)

                                18.7m @ 58.28% Fe from 31.6m (WRKDD002b), and

                                26m @ 56.32% Fe from 20m (WRKRC237)

The directors of Pilbara explorer, Warwick Resources Limited (ASX:WRK) are pleased to announce an initial Inferred Mineral Resource^[1] at its 100% owned Caramulla South iron ore project as follows:

Caramulla South Project - Inferred Mineral Resource at 50% Fe Cut-off

Caramulla South lies approximately 60km to the east of Newman in Western Australia's Pilbara region and is strategically located midway between BHP Billiton's large Jimblebar iron ore mine and railway and Ferraus Ltd's emerging Davidson Creek project (Figure 1).

This follows the announcement in September 2008 of an initial Inferred Mineral Resource of 11.7Mt @ 57.5% Fe for the Company's Jimblebar Range project, located 13km to the west of Caramulla South.

Warwick Resources' Managing Director Bruce McQuitty said that the initial 13.8Mt Inferred Mineral Resource at Caramulla South was a significant addition to the Company's iron ore resource base in the Newman region.

"Caramulla South is the second resource to emerge from the Company's strong portfolio of iron ore projects near Newman. We expect to undertake further resource estimates in the first half of 2009".

"The Company is well placed financially to continue to explore its exciting portfolio of exploration projects and to take advantage of exploration and consolidation opportunities in the region", Mr McQuitty said.

The Caramulla South deposit consists of two shallow zones of iron mineralisation, each approximately 1,000m long by 150-200m wide, located at either end of a 4km long east-west striking strip of Marra Mamba Formation near the northern margin of the exploration licence (Figure 2). The western zone is outcropping, while the eastern zone lies between 12m and 47m below surface, beneath a layer of detrital iron. Both zones of mineralisation dip shallowly to the north.

The mineralisation is mostly "hardcap" material - a hard, vuggy, dense near-surface layer of goethite-haematite which characteristically has a lower iron grade but a superior lump to fines ratio than the softer, deeper Marra Mamba mineralisation (Figure 3).  The Company intends to investigate the potential for cost beneficiation techniques, such as dry screening, to improve the iron grade of this resource.

The Caramulla South resource estimate was prepared by Bosta Pratama, who is a full time employee of Quantitative Group (QG). QG are an internationally recognised, independent consultancy group specialising in resource evaluation. This estimate was prepared under the supervision of, and with technical review by, Chris De-Vitry¹ who is a full time employee of QG. Chris De-Vitry acts as the competent person for the resource estimate while Bruce McQuitty² acts as the competent person in respect of the geological interpretation and data quality on which the estimate is based, as well as for reporting of exploration results. Details of the estimation methodology are contained in Annexure 1.

Resources were estimated from the results of 60 RC drill holes for a total of 2,577m. The drilling pattern is approximately 100-200m x 30m. The collar locations of the drill holes are shown in Figure 2.

In addition, results have recently been received from RC and diamond drilling undertaken at Caramulla South during the latter half of 2008 (see Table 1 for a full list of results and Table 2 for drill hole collar details). This drilling was designed to infill areas of low drill density and to target extensions to the eastern zone. Significant intersections include:

                34.6m @ 57.65% Fe from 2m depth (WRKDD001);

                18.7m @ 58.28% Fe from 31.6m depth (WRKDD002b);

                26m @ 56.32% Fe from 20m depth (WRKRC237);

                30m @ 54.51% Fe from 8m depth (WRKRC238); and

                20m @ 54.62% Fe from 38m depth (WRKRC230).

These results have not been incorporated into this resource estimate and will be included in the next resource update. The net effect of the recent drill results is expected to be a small increase in both tonnage and grade.

Further results from drilling undertaken last quarter on the Company's iron ore projects are expected to be released to the market progressively over forthcoming weeks.

For further information, please contact:

Bruce McQuitty

Warwick Resources Limited

Phone: 08 9481 8181 / Mobile: 0409 929 121

Email: bmcquitty@warwickresources.com.au

Website: www.warwickresources.com.au

^[1] This estimate is classified and reported in a manner compliant with the JORC code and guidelines (JORC, 2004).

Please follow the links below to view Figures 1, 2, & 3:

Figure 1: Location of Caramulla South and Warwick's other iron ore projects near Jimblebar:

http://www..purplecom.com.au/_content/documents/1057.JPG

Figure 2: Location of modelled resource shells and drill holes at Caramulla South:

http://www..purplecom.com.au/_content/documents/1058.JPG

Figure 3: Caramulla South drill core - typical vuggy "hardcap" Marra Mamba iron mineralisation:

http://www..purplecom.com.au/_content/documents/1059.JPG

Table 1: Caramulla South Drill Results

Hole IDs prefixed "WRKRC" are Reverse Circulation Percussion (RC) drill holes. Hole IDs prefixed "WRKDD" are diamond drill holes.  # denotes hole terminated in mineralisation. * denotes hole terminated before reaching target depth. NSR = no significant result.  RC drill samples were collected as 2m riffle split composites. Samples of halved HQ₃ diamond drill core ranged from 0.2m to 1.5m in length.  All samples were analysed by X-Ray Fluorescence Spectrometry (XRF). Loss on Ignition (LOI) values were determined using Thermo-Gravimetric Analyses at 1000^oC. Results are reported on a dry sample basis. Intersections have been calculated using 50% Fe lower cut-off and up to 2m internal dilution. True widths are estimated to be between 80% and 100% of downhole widths.

Table 2: Drill Hole Collar Details

    Coordinates are MGA Zone 51 (GDA) projection.

About Warwick Resources Limited

Warwick Resources (ASX:WRK) is an emerging iron ore explorer with a diverse asset portfolio near Newman in the Pilbara region of Western Australia which is host to world class iron ore mines. The Company's projects have a combined area of 1,200km?. Since listing on ASX in February 2007, the Company has rapidly identified significant iron ore targets on its existing tenure and has recently acquired further iron ore prospective ground. Through its relationship with Peak Drilling, the company has access to drill rigs to aggressively explore its projects. Pilbara iron ore producer Atlas Iron Ltd (ASX:AGO) is Warwick's largest shareholder with a 19.4% stake.

Warwick's iron ore projects near Newman are:

Jimblebar Range contains an Inferred Mineral Resource of 11.7Mt @ 57.6% Fe, with low levels of impurities (2.2% Al₂O₃, 0.06% P). The deposit consists of two zones of haematite-goethite mineralisation which extend from near surface to over 70m depth. The deposit is located only 8km from BHP Billiton's large Jimblebar iron ore mine and railway.

Caramulla South contains an Inferred Mineral Resource of 13.8Mt @ 53.9% Fe. The deposit consists of two shallow zones of hardcap Marra Mamba iron mineralisation, each approximately 1,000m long by 150-200m wide, located near the northern margin of the exploration licence. The deposit is located 19km to the east of BHP Billiton's Jimblebar iron ore mine and railway and borders on BHP Billiton's tenements to the north..

Western Creek contains a 3km long outcrop of Marra Mamba Formation with iron enrichment. RC drilling by BHP/Renison Ltd JV in the early 1990's obtained significant iron ore intersections from shallow depths, including 36m @ 59.2% Fe and 21m @ 59.2% Fe. The project also contains CID and enriched BIF targets.

McCamey's South adjoins BHP Billiton's McCamey's Monster mining lease and contains Marra Mamba iron ore targets.

Woggaginna has extensive areas of surficial iron enrichment, developed over banded iron formation confirmed by detailed mapping and sampling.  Grades up to 63.0% Fe and low contaminants indicate DSO potential.

Jimblebar CID - a 3km long mesa from 75m to 150m wide capped by pisolitic iron mineralisation. An initial drill traverse completed across the CID demonstrated that the channel contains up to 7m of iron-rich pisolite grading to 57% Fe. Phosphorous levels are very low, ranging from 0.020% to 0.025%.

Ten Mile CID is a recently identified channel iron target over 3km in length and up to 400m wide, with potential for further mineralisation beneath shallow cover. Initial rock chip sampling returned grades up to 58.5% Fe.

Grassroots Iron Targets - Areas of surficial iron enrichment, developed over banded iron formation, have been mapped at Black Hills. Multiple targets for channel iron mineralisation have been identified on the Company's tenements.

Please follow the link below to view letter from the Quantitative Group's Mr Chris De-Vitry to Mr Bruce McQuitty:

http://www..purplecom.com.au/_content/documents/1060.pdf

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