EXPLORATION INITIATIVE TARGETING PHILLIPS FIND MINING CENTRE

?Barra to target new multi?pit production at Phillips Find Mining

Centre

?Planning for new exploration initiative complete

?Depth extensions and links between Newminster and Newhaven

Deposits to be tested

Barra Resources Limited (ASX Code: BAR) is pleased to announce that planning is complete for a targeted exploration program at the Company?s Phillips Find Project, designed to extend known mineralisation, grow known deposits and establish a viable mining operation at the Phillips Find Mining Centre.

With gold prices reaching new highs, the Phillips Find Mining Centre presents an immediate opportunity to establish a profitable production hub around the Newminster gold deposit based on the existing Indicated Resource of 52,600t @ 2.99g/t Au and an Inferred Resource of 25,900t

@ 2.70g/t Au. The combined total for both the Indicated and Inferred Resources being 78,500t

@ 2.90g/t Au for 7,300 ounces of gold down to a depth of 75 metres.

The Company believes that known plunging shoots and structural targets surrounding Newminster and the previously mined Newhaven and Bacchus Gift deposits has the ability to develop the Phillips Find Mining Centre into a medium to long term mining operation.

Initially with shallow aircore and deeper Reverse Circulation drilling, the Company will focus on growing the resource base at Newminster and Newhaven while testing structural targets between existing deposits.

Since listing in 2000, the Company has focussed its attention regionally at Phillips Find, pursuing new discoveries which have borne the Diablo, Bob Hope and Warlock Prospects.

With access to the nearby Greenfields mill being provided by the Company?s major shareholder, mining investment group FMR Investments Pty Ltd, Barra is ideally placed to capitalise on healthy margins available from open pit material with relatively short trucking distances.

A detailed exploration program and budget is currently being prepared which will be announced in the near future.

Gary Berrell

Chairman

Barra Resources Limited (ABN 86 093 396 859) Ground Floor, 30 Richardson Street, West Perth, Western Australia 6005

Telephone: (08) 9481 3911 Facsimile: (08) 9481 3955

The information in this report which relates to the Newminster Mineral Resource is based on information compiled by Gary McCrae, a full time employee of Minecomp Pty Ltd and who is a member of the Australasian Institute of Mining and Metallurgy. Gary McCrae has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the March 2005 Edition of the ?Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Resources Committee, the Australian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and the Mineral Council of Australia.? Gary McCrae consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

The information in this report which relates to Exploration Results is based on information compiled by Gary Harvey who is a Member of the Australian Institute of Geoscientists and a full-time employee of Barra Resources Ltd. Gary Harvey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the

2005 Edition of the ?Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore

Reserves?. Gary Harvey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

It should not be assumed that the reported Exploration Results will result, with further exploration, in the definition of a Mineral Resource.

Barra Resources Limited (ABN 86 093 396 859) Ground Floor, 30 Richardson Street, West Perth, Western Australia 6005

Telephone: (08) 9481 3911 Facsimile: (08) 9481 3955