January 24, 2008

Viking Deposit: Extension to Depth DDH A218: 3.0m @ 4.7% Ni Within 17.0m @ 1.4% Ni

SYDNEY, Australia, Jan. 24 /PRNewswire-FirstCall/ -- At the Avebury Mine, drill hole A218 has intersected 3.0m @ 4.7% Ni within a thick zone of mineralisation assaying 17.0m @ 1.4% Ni, 100m below the base of the current Viking Resource (Figure 1 and 2).

A wedged hole A218B off the parent hole intersected a similar zone assaying 2.3m @ 2.1% Ni within a thick zone assaying 19.3m @ 0.8%. DDH A218 also intersected additional mineralised zones in Central Viking (8m @ 1.2% Ni) and South Viking (assay results pending).

Both A218 and A218B clearly demonstrate the depth extension of the thick, continuous Avebury style mineralisation well below the base of the current Viking Resource.

A218 lies 200m east along strike from A053 which intersected 14.0m @ 2.5% Ni. The Viking Resource zone remains untested below these two drill holes. A 218 and A053 are very important intersections, not only for their high grades but also for the width of mineralisation. The high grades, wide mineralised zones and large areas surrounding these intersections combine to present an exciting opportunity for major resource extensions in this area.

The intersections, while highly significant, are not by themselves sufficient to enable the Company to report an increase in resources. However, they are encouraging in the context of the possibility of a major resource extension at Viking which would compliment other similar resource extension opportunities at North Avebury, East Avebury and Pontiac, all of which will be rigorously pursued in the near future. Anticipated success in these areas will provide a sound foundation for the expansion options of the Avebury operation which are currently under investigation.


This latest intersection below the Viking Resource zone vindicates our stated optimism regarding continued growth in the Avebury resource base, which could underpin future major expansion of the Avebury operation.

Our optimism is based on a highly professional assessment of resource potential by our mine geoscientists.

Drill hole A218 (17m 1.4% Ni) lies 100 metres beneath the Viking resource zone. It is 200 metres east of drill hole A053 (14m 2.5% Ni). There are no other drill holes in between or below these holes.

This represents a wonderful opportunity for the identification of major extensions of the Viking resource, due to the combination of thick multiple zones of mineralisation and higher than average grades.

We believe that over the medium to long term your Allegiance team will continue to deliver cost effective, positive exploration results - such is the potential and the promise of the Allegiance Province.

The other exciting point to note about these results is that the resource extension opportunity below Viking is but one of a number of similar opportunities at Avebury, including eastern extensions of North Avebury, depth extensions of Pontiac, and strike extensions of East Avebury.

   Tony Howland-Rose   MSc, DIC, FGS, FIMMM, FAusIMM, MAICD, FAIG, CEng   CHAIRMAN    Allegiance Mining NL   P: +61-2-9397-7777   F: +61-2-9397-7778   W: http://www.allegiance-mining.com.au/  

Allegiance Mining NL

CONTACT: Allegiance Mining NL, P: +61-2-9397-7777, F: +61-2-9397-7778

Web site: http://www.allegiance-mining.com.au/