Heron Resources advancing Kalgoorlie nickel project

Kalgoorlie-based nickel player have continued to advance the project with completion of core drilling and screening of samples.

Also, Heron and Inco, one of the world's largest nickel companies, have signed a nickel sulphide agreement term sheet to help develop its nickel sulphide exploration programme.

PLEASE FIND HIGHLIGHTS OF MARCH 2006 QUARTERLY RESULTS BELOW.
Nickel Laterite Development

-Inco Limited continues to advance the Kalgoorlie Nickel Project and has completed the core drilling component of Step 1 under the KNP Farm-in and Joint Venture Agreement.

-Heron receives strong upgrade results from fine screening test work that it completed on drill samples from the Highway Project.

-Heron commences evaluation of nickel cash flow options outside the KNP on 100%-owned Heron tenements, with column leach testwork programs underway to evaluate nickel laterite heap leach options.

-Heron commences infill resource drilling at Big Four, Ghost Rocks and Goongarrie Hill North to extend the KNP resource base, drilling 100 holes for 4,059m and confirming good siliceous upgrade mineralisation.

Nickel Sulphide Exploration

-Heron and Inco sign a Nickel Sulphide Agreement Term Sheet.

-Heron continues to advance its nickel sulphide targets in the Kalgoorlie district, with targets for EM surveys defined at Ghost Rocks, Trans East and Cowarna Downs.

Corporate

-Recruitment of a Regent CEO being finalised, ahead of copper-gold IPO, focus on Olympic Dam style IOCGU targets in the Warburton copper province.

-Finalising Balladonia Uranium asset divestment strategy, focus on large contiguous landholdings with proven uranium mineralisation models.

-Finalising Ochre Iron Ore asset divestment, focus on province consolidation with ensuing production opportunities.

For further information please visit www.heronresources.com.au