Rose Petroleum plc

Acquisition of the North Alice Extension Project, Lisbon Valley, Utah


VANE Minerals Plc is pleased to announce that its wholly-owned uranium subsidiary, VANE Minerals (US) LLC ("VANE (US)" or "the Company"), has signed a 5 year renewable lease agreement on 18 lode claims (approximately 350 acres) in the Lisbon Valley Uranium District of south-eastern Utah. The claims, which make up the North Alice Extension Project, are located on and adjacent to the North Alice Mine, formerly held and operated by Homestake Mining Company ("Homestake"), which produced about 2.5 million pounds of uranium oxide ("U3O8") before closing in the early 1980's due to the falling price of uranium.

The south-eastern part of the claim group covers the northwest portion of the North Alice Mine workings (including a sealed vent shaft) where the limited data available at this stage indicates that resources appear to be in place. In addition, the property covers an area which has had substantial drilling, including delineation drilling, completed by Homestake during the early 1980's.

The Lisbon Valley has historically produced in excess of 78 million pounds U3O8 and includes the Rio Algom Lisbon Mine/Mill complex which is located one mile to the northeast of the North Alice Extension Project on the down-thrown side of the Lisbon Fault. The Lisbon Mine itself produced in excess of 18 million pounds of U3O8 until being mined out and currently is in reclamation.

Mineralisation in the North Alice Extension Project occurs in stratabound units on the up-thrown side of the Lisbon Fault at depths of 700-800 feet. The Company is presently attempting to acquire additional data on the areas of mineralisation that were drilled late in the exploration history of Lisbon Valley, circa early 1980's. At the same time, the Company is drafting a Notice of Intent to Drill to submit to the Bureau of Land Management to initially drill 25 confirmation holes. Drilling is expected to start in the second quarter of 2007 depending on approval. A drilling contractor has already been identified for this drilling campaign.

Matthew Idiens, Director of Corporate Developments commented, "The Company's geologists believe the North Alice Extension Project has substantial resources and excellent exploration potential. This acquisition further strengthens our uranium portfolio and we are encouraged by the historical uranium production of the Lisbon Valley area which provides evidence that this region is highly mineralised. An aggressive drilling programme will commence as quickly as possible as we aim to increase our uranium resources."

Minas Charay

As reported in our interim results, a 26-hole drilling programme carried out at Minas Charay did not confirm the large low-grade target and was only successful in delineating a narrow high-grade precious metal vein system. Accordingly, this project was assigned lower priority with all financial obligations being terminated pending renegotiation with the local owner of the mineral rights to this property.

The Board has decided not to proceed with the renegotiation as it was unable to agree satisfactory terms and it wishes to concentrate its efforts on exploitation of, and additions to, its uranium portfolio and the operation of the successful Diablito mine. As previously noted, the Board feels that the Mina Charay project's unfavourable results will not have a material effect on the company.

Kristopher K. Hefton, Chief Operating Officer VANE Minerals (US) LLC, BSc Geology, who meets the criteria of a qualified person under the AIM rule guidance for mining, oil and gas companies, has reviewed and approved the technical information contained within this announcement.

All historical data has been sourced from publicly available 43-101 reports