Baobab Resources plc (AIM:BAO) ('Baobab' or 'the Company'), is pleased to announce the interim results of metallurgical test work being carried out on vanadiferous titano-magnetite ore from the Massamba Group prospects within its Tete project.

Summary

• Stage 1 beneficiation test work at a 106µm grind and 800 Gauss low intensity magnetic separation (LIMS) has produced a high mass yield concentrate assaying 56% iron and 0.7% V2O5.

• Low concentrate grades of titanium (<9%), silica (0.5%) and other deleterious elements.

• At current market prices, the value per tonne of concentrate is estimated at US$80 iron plus vanadium credits.

• Non-magnetic residue containing 22% titanium may be a marketable byproduct.

• Improved concentrate grades are expected from Stage 2 beneficiation test work.

• Stage 2 beneficiation test work is underway.

• Drilling is planned to confirm the extent of mineralization in the Massamba area as indicated by recent aeromagnetic interpretations and field mapping (refer to AIM announcement dated 18th June 2008).

• The Tete project has excellent proximity to critical infrastructure, including hydroelectric power and a railway linking the area with the port of Beira.

• Tete is a major mining investment centre with Vale and Riversdale in the process of opening up the Moatize and Benga coal fields

Commenting today Damian Connelly, director and principal consulting engineer of Mineral Engineering Technical Services, who carried out the test work, stated that 'the initial results are very encouraging and meet the general specifications required by end-users. It is reasonable to expect a further upgrade in the concentrate as the beneficiation test work progresses.'

Brett Townsend, the Company's acting Managing Director, commented:

'The ore benefication results are very exciting. A strike length in excess of 8 kms of magnetite bodies has been interpreted from geophysical anomalies in the Massamba group. A drilling program is now warranted to define the titano-magnetite resources of the Massamba area which has the potential to host very large tonnages of ore amenable to producing a saleable iron concentrate.'

The Tete project is located immediately north of the Provincial capital of Tete and comprises three contiguous Exploration Licences that straddle the central portion of the Tete Mafic Complex, covering an area of approximately 632km2. The Licences contain 5 known vanadiferous titano-magnetite deposits: Singore, located approximately 30km due north of Tete; and the cluster of prospects known collectively as the Massamba Group, located 55km north-northeast of Tete. Rock chip sampling from Massamba Group returned average grades of 49% Fe, 21% TiO2 and 0.3% V.

Baobab Resources plc (BAO:AIM) is an AIM-listed company exploring for a variety of commodities in Mozambique. – Press Release