Rose Petroleum plc

Arizona Breccia Pipe Uranium Exploration Update


VANE Minerals Plc ("VANE" or "the Company") is pleased to provide an update on its breccia pipe uranium exploration activities in northern Arizona, operating as VANE Minerals (US) LLC, its wholly-owned uranium subsidiary.

The schedule of the drilling programme for the Miller, Big Red, and Red Dike Pipes has been modified in order to complete the work obligations required by the State of Arizona within the stated time constraints of the exploration permits. Exploration programmes are required to be completed within one year of approval. Due to limited rig availability,and adverse weather one of the three drill holes planned for the Miller Pipe was completed and the rig was then moved on to Big Red, followed by Red Dike, in order to satisfy those work commitments.


Miller Pipe Project

Hole 691-1 was completed to a depth of 1445 feet (441m). The hole was designed to offset, 60 feet (18m) to the northeast, the mineralised zones encountered in holes 1640-3 and 1640-5 drilled by Energy Fuels Nuclear, Inc in the 1980's. Hole 691-1 deviated 44 feet (13m) northeast from the collar and out of the pipe and was barren of uranium mineralisation. The geological results indicate the high-grade mineralisation encountered in the old holes is contained in the annular ring fractures of the pipe and that hole 691-1 is outside the annular rings. Further exploration drilling will focus on the annular rings as well as the pipe interior and the next hole is planned for the inferred western portion of the pipe, which has not yet been tested. Annular ring mineralisation accounted for substantial uranium tonnage in other pipes in the district, particularly the Orphan Mine, which historically produced 5 million pounds of uranium oxide ("U3O8"), in addition to mineralisation in the pipe cores. Drilling will resume at Miller when the rig is released from the other VANE projects.

Big Red Pipe Project

Hole 696-1 was completed to a depth of 1144 feet (349m). The hole was located in the inferred centre of the pipe based on historic drilling data. The hole intersected the pipe from the collar to some point above the Coconino Sandstone formation (above 600 feet (183m)) and from there remained outside the pipe to its completed depth. The log showed weak anomalous gamma radioactivity. Favourable alteration was observed in core and drill cuttings in the formation at and below the expected level of uranium deposition. Both the gamma log and alteration are highly encouraging indications that the pipe has undergone a mineralising event and could contain a uranium deposit. Based on results, the pipe centre is estimated to be located north of hole 696-1.

The rig was moved to the Red Dike project to satisfy the permit agreement work requirements, as stated above, and a second campaign of drilling on the Big Red Pipe is now planned.

Red Dike Pipe Project

Drilling on hole 698-1 is in progress. Drilling production on this hole has been slow due to difficult drilling conditions encountered in the upper part of the hole. This zone is at present being cased and drilling will resume on completion.

Matthew Idiens, Director of Corporate Development commented "The potential mineralised ore zone of a pipe is, as a result of the high grades found, relatively small and therefore it can take a few drill holes to intersect the zone properly. As an example, 3m lbs U3O8 at a grade of 0.7% could be contained in approximately 255,000 tonnes. Therefore we are encouraged by the results obtained so far, none of which diminish our view of the favourability or potential of any of the targets drilled. Since the 1980's, VANE is only the second company to drill on the south rim for breccia pipes and the third company to initiate drilling in the breccia pipe district. With this in mind we aim to use the experience and expertise gained in this region to continue to expedite the programme further and we are excited about the prospects of additional drilling on these targets."

Kristopher K. Hefton, Chief Operating Officer VANE Minerals (US) LLC, BSc Geology, who meets the criteria of a qualified person under the AIM Rules - Guidance for Mining, Oil and Gas Companies, has reviewed and approved the technical information contained within this announcement.