Breakaway Resources Limited (ASX: BRW)

RESULTS FOR NICKEL Sulphide Extensions AT Keller Creek Ni-Cu CompLex, EAST KIMBERLEY

Breakaway Resources Limited (ASX: BRW - "Breakaway") is pleased to announce the assay results for a limited Reverse Circulation (RC) drilling programme undertaken at Keller Creek which is located approximately 7 kilometres northwest of Panoramic Resources Ltd's operating Savannah Nickel Mine. The majority of holes intersected massive to disseminated sulphides within the poorly explored nickel - copper sulphide system hosted by the Keller Creek mafic to ultramafic intrusion. Keller Creek forms part of the East Kimberley Nickel Project in which Breakaway owns a 60% interest with Thundelarra Exploration Limited holding the remaining 40%

The assay results are summarised in the following table:

The drill results confirm the occurrence of broad nickel-copper-cobalt system in which the mineralisation is mainly concentrated towards the base of the Keller Creek intrusion. The drill results confirm that the known mineralisation covers an area measuring 600 metres and over 300 metres down-dip on the northwestern margin of the intrusion.  The margins of the system have not yet been defined and there is every probability that it could be more extensive.  Also there is every potential for zones of greater sulphide concentration which remain to be discovered.

Follow-up downhole TEM geophysics carried out on selected holes has identified several additional conductors which are under evaluation.

The East Kimberley Project is a joint venture in which Breakaway owns a 60% interest. The Savannah (formerly Sally Malay) nickel deposit, which has a published Proved and Probable Reserve of 3.13 million tonnes at 1.57% nickel, 0.63% copper and 0.08% cobalt, lies on a small excision of tenements owned by Panoramic Resources within the Project area.

Commenting on the results, Breakaway's Managing Director Peter Buck said, "The drilling confirms that the Keller Creek intrusion represents a broad Ni-Cu-Co system which has only undergone limited drilling and is yet to be closed off".   Mr Buck continued, "Keller Creek represents one of only several known Ni-Cu-Co systems in the region and, in keeping with similar systems elsewhere in the world, could easily host zones where the mineralisation has formed in increased concentrations". 

"The results will be evaluated to understand the broader potential and further work requirements will be developed in conjunction with Breakaway's other nickel exploration commitments".

ENDS

Competent Persons Statement:

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Peter Buck (Managing Director) and Mr David Hutton (Exploration Manager), both full time employees of the Company.  Mr Buck and Mr Hutton are members of the Australasian Institute of Mining and Metallurgy (AusIMM) and have sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2004 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

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