Caeneus Minerals Ltd. announced receipt of the final assay results from its Phase 1 reverse circulation (RC) drill program over the historical Highway Ni-Co-Cu-Pd deposit in the highly prospective Goldsworthy Greenstone Belt, in the Pilbara region of Western Australia. The Company's recently completed drilling programme has provided a valuable insight and in-depth understanding into the geochemical and structural controls on the core Ni-Co-Cu-Pd mineralisation and the higher grade solely copper intercepts identified within the metasediment footwall. In particular, core Ni-Co-Cu-Pd mineralisation appears to be tightly constrained within a hanging wall layered schist which provides the Company with confidence that the reported significant mineralisation encountered at shallow depths should also be present at greater depths where this same host lithology continues.

A geological interpretation of the wide and shallow mineralisation at the Highway deposit is shown in cross sections AA' and BB'. Strategic Metallurgy Pty Ltd, an experienced Perth based nickel flotation expert, has now been engaged by the Company to conduct a characterisation and flotation testwork programme on a representative sample of fresh sulphide cuttings from the Phase 1 drill program at Highway. The primary objectives of this testwork is to: Conduct a mineralogy assessment, Determine feed characteristics, Determine flotation response and base metal and PGE recoveries, Investigate the option to produce separate copper and nickel flotation concentrates by sequential flotation, Provide a commercial base-line flow sheet.

This metallurgical work is considered comprehensive and will support the ongoing development and further assessment of the project. The results of this test work is expected to be completed in September. The Company is also pleased to confirm that a new drilling programme will commence contemporaneously with the metallurgical studies.

Commencing in late July-August, a further 5000 m RC drill program tender has been awarded to Impact Drilling Services where a follow up resource definition program will concentrate on infilling the deposit to a 50 x 50 m grid spacing which will provide sufficient data for the estimation of a JORC 2012 maiden resource. This larger follow-up program is expected to be completed in September with assay results starting to be received in late November. Approval for the Highway regional targeting Program of Work (POW) is still underway with the company aware of a current backlog within the Department of Mines Industry and Regulation (DMIRS).

Regional target T1 continues to remain a high priority follow up drill target for the Company. Historical drilling in 2007 by the Segue Resources & Mithril Resources JV highlighted the following intercepts: RC07HW025 (Hole ended in mineralisation). 14m @ 0.10% Co from 152m, Including 1m @ 0.18% Co from 152m, 64m @ 0.33% Cu from 80 m. This drillhole result is isolated and a follow up fence line of drill holes is required to determine the width and extent of the Co-Cu mineralisation which is situated directly along strike from the main Highway ore body.

Whilst the proposed resource definition drilling remains of paramount importance and priority, the Company expects to further evaluate T1 later this year.