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FOR IMMEDIATE RELEASE                                                                                               29 January 2010

Rusina Mining NL

("Rusina" or the "Company")

QUARTERLY REPORT

FOR THE PERIOD ENDED 31 DECEMBER 2009

The Company announces that is has released its Quarterly Report to the ASX today. A copy of the document is available from the Company's website - www.rusina.com.au and as a link to this announcement.  

    http://www.rns-pdf.londonstockexchange.com/rns/3765G_-2010-1-29.pdf

 

    http://www.rns-pdf.londonstockexchange.com/rns/3765G_1-2010-1-29.pdf

 

HIGHLIGHTS DURING THE QUARTER

• Heap Leach Trial Site officially opened 

• Crushing of all ore completed 

• Second tranche of placement to UK institutions approved and completed

• DSO shipments to re-commence

RUSINA CORPORATE

In late October a general meeting of shareholders approved the second tranche of the placement undertaken by the Company in mid September. A total of 21,000,000 new shares were approved to be issued at a placement price of 5.25 pence. This was in addition to 37,760,800 shares issued under the Company's 15% placing limit during September.

In November the Company held its Annual General Meeting at which all resolutions were passed on a show of hands. 

At the end of the quarter the Company's cash on hand was $4.95m. In addition, receivables owed by our joint venture partner on the Acoje nickel heap leach project totaled US$0.8 m.

A total of 8,600,000 unquoted options expired unexercised during the quarter. There were 2,888,040 new unquoted options issued with an exercise price of 11 cents and a term of 2 years. 

The total number of ordinary shares on issue as of the end of the 2009 calendar year was 302,963,515.

ACOJE HEAP LEACH TRIAL AND TEST CENTRE

The Acoje nickel heap leach trial pad and pilot plant was officially opened on 9 December by Australian Ambassador to the Philippines, Rod Smith. 

This is the first pilot plant in the Philippines to trial heap leaching technology on nickel laterites.  

The trial heap will be constructed at the same height as the full commercial operation and is designed to prove the heap percolation and leach rates on a full scale basis as well as demonstrating the rain control methodology. In addition the trial facility will showcase the clean, safe and environmentally friendly nature of the process to the government and local stakeholders.

The crusher was commissioned and the 3,000 tonnes of nickel laterite ore, a mixture of limonite and saprolite, was completed within the required specifications of 95%<50mm on the first pass.

All electrical work on the agglomerator, binder plant and associated monitoring equipment has been completed and the agglomerator and associated conveyers are now fully commissioned. All water and reticulation equipment required for agglomeration and stacking is in place and will commence pressure testing during late January.

The downstream processing plant concrete pad has been completed with shed erection due to commence shortly. The Resin in Pulp, Ion Exchange and Centrifuge installation is scheduled to commence in late February.

Leaching will commence once the pad has been stacked and irrigation pipes placed over the heap. An HDPE raincoat will cover both the pad and the ponds. 

DIRECT SHIPPING ORE (DSO) AGREEMENT

DMCI Mining ('DMCI') has notified the Company that it is intending to resume operations at Acoje in the first quarter of 2010. DMCI have received buyer interest for higher grade nickel laterite ore and will seek to undertake selective shipments from the Santa Cruz purpose built loading facility.

Subsequent to quarters end the Company modified the existing DSO agreement with DMCI to enable the mining to recommence. In accordance with the terms of the modified arrangement, DMCI shall continue to be responsible for all mining, marketing, transport and capital costs of up to 200,000 tonnes high grade ore (>2%Ni) at a fixed operating cost whist providing a 50% share of profits to Rusina on a shipment by shipment basis. There is an agreed minimum profit before a shipment can take place.

In addition, the modified arrangement includes a substantially reduced fixed incremental cost¹ for lower grade ores, again on a minimum agreed profit on a ship by ship basis. This modified arrangement greatly reduces the risks to both DMCI and Rusina in the volatile DSO market whilst taking advantage of favourable marketing conditions as they arise.

Contacts:        Mark Hanlon        Rusina Mining                 Tel: +61 8 9226 1111

                        Roland Cornish     Beaumont Cornish           Tel: +44 (0) 207 628 3396

For further information please visit our website - www.rusina.com.au

 ¹Incremental cost - where the low grade mining costs are covered by the high grade removal and therefore only trucking and shipping costs are charged to the low grade.

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