Pallinghurst Resources Releases Feasibility Study Confirming One Of World's Largest Unmined Manganese Deposits

HAMILTON, Bermuda - 22 June, 2009 - Pallinghurst Resources (Guernsey) Limited (Ticker: PALLRES.BH) is pleased to announce that Tshipi é Ntle Manganese Mining (Pty) Ltd ("Tshipi") has received its feasibility study on the Tshipi Kalahari Manganese Project ("the Project").  Pallinghurst, together with its co-investors, hold 49.9% of Tshipi with Pallinghurst currently owning an effective 10% stake in the Project.

Extensive exploration of the property has defined resources of 161 million tonnes (SAMREC compliant) mineable by open pit methods. The ore resources are shallower than expected, and are low in phosphorus and other deleterious elements. A further 110 million tonnes are expected to be accessible through underground mining methods, increasing the total resource to 271 million tonnes.

The feasibility study, carried out by Turgis Consulting (Proprietary) Limited, envisages the creation of a large open pit manganese mine to produce two million tonnes per annum of "Mamatwan" type manganese ore, grading 37%. The study confirms that the Project is economically robust, with production costs in the lowest industry quartile.

Pallinghurst Chairman Brian Gilbertson said: "The Kalahari Basin is one of the world's important mineral provinces, and hosts 80% of the world's manganese reserves.  It is from here that the bulk of the ore essential for world steel production will be sourced for centuries to come.  Happily, the feasibility study has shown our project, in the heart of the basin, to be large, robust and of long life".

The Project is located in an area benefiting from established road, power and rail infrastructure and has sufficient water resources for open pit mining. Tshipi will build its own 4MVA power plant and plans to construct a dedicated high-speed rail loading facility.

Tshipi is engaging with Transnet and participating in the Manganese Export Capacity Allocation process. In terms of this process, Transnet will allocate existing rail and port capacity to current and new manganese producers. Tshipi has been confirmed as meeting Transnet's initial requirements for the Long Term Allocation Process. In addition, alternative transport solutions are presently undergoing detailed evaluation.

It will take approximately one year to produce the first saleable manganese ore after the formal "go decision".

Pallinghurst CEO Arne H. Frandsen said: "We expect the project now to move rapidly to a formal "go decision" as access to transport and port capacity is finalised.  This is clearly a very attractive asset which will unlock significant value for all our stakeholders as well as potentially create some 400 new jobs". 

For further information please contact:

Pallinghurst Resources          

Arne H. Frandsen                   +44 778 752 1871

College Hill                             

Johannes van Niekerk            +27 82 921 9110

Guernsey          
18 June 2009 

                                                                
BSX Sponsor: First Bermuda Group Limited

Michael Schroter, First Bermuda Group                    (441) 295-1330