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Macarthur Minerals Announces 57% Increase in Inferred Resource Estimate for Lake Giles DSO Projects

Macarthur Minerals Limited (TSX VENTURE:MMS) has released a 57% increase in the Hematite-Goethite Inferred Mineral Resource estimate for its Lake Giles DSO projects located in Western Australia.

The Inferred Resource estimate has increased to 18 million tonnes at 55.5% Fe based on the last resource statement of 11.5Mt at 55.2% Fe (Press Release Dated November 9, 2010).

The Mineral Resource estimate increase is due to the inclusion of Central and Banjo-Lost World projects where 4.8Mt at 55.2% Fe and 5.5Mt at 55.7% Fe have been estimated respectively. The resource increases have been based on the recently completed Stage 9 programme and mineral estimates have been modelled by independent mining consultancy group CSA Global Pty Ltd ("CSA") using the Company's geological interpretation.

Macarthur Minerals Director, Mr Alan Phillips stated, "This is an outstanding outcome and has far exceeded our objective of delineating 10mt. The increased tonnage has reduced the discovery cost per tonne to a mere 20 cents. We are making significant progress in our goal of bringing Lake Giles into initial production through our DSO resource."

Additional Targets and Opportunity to Increase DSO Mineral Resources

Macarthur Minerals has numerous targets and opportunities that may further increase the DSO resource base by extending the drilling program on known resources and drilling numerous untested targets that have been mapped.

Quality Assurance and Quality Control (QAQC):

Intersections reported have been verified by the company's QAQC protocols. All samples from drill holes are prepared by Amdel and SGS Laboratories and pulverised to 90% passing 75 microns then analysed for the iron suite using XRF.

QUALIFIED PERSON

Mr. Chris Allen, BSc(Hons),MBA, MAIG who is a full-time employee of CSA and is an Independent Qualified Person, has reviewed and approved the above technical information relating to Mineral Resource estimates contained in this release.

Mr. Andrew Spinks B.App.Sc, Grad.Dip (Mining), a member of AusIMM, and a consultant geologist, is a Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), in charge of the exploration on the Lake Giles project.

Source:

Macarthur Minerals Limited

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