NICKEL MINING – LionOre to expand Black Swan

WESTERN AUSTRALIA - Toronto's LIONORE MINING INTERNATIONAL is making plans to expand production at its Black Swan nickel-gold mine by 50%. The operation will then produce over 13,000 tonnes of nickel annually. The expansion will also reduce operating costs and double open pit reserves.

The project includes both an expansion of the existing pit and a boost to plant capacity to 2.15 million tonnes/year from 600,000 tonnes/year. Pre-production capital costs are estimated to be approximately US$52 million. Plans call for commissioning the larger plant in the third quarter of 2006, with full capacity reached before the end of next year.

The Black Swan mine is 80%-owned by LionOre. Located near Kalgoorlie, the project has an underground mine, open pit and nickel sulphide flotation plant. The company recently released updated resource figures for the pit. They include indicated mineral resources of 9.69 million tonnes at 0.72% Ni and probable reserves of 8.70 million tonnes at the same grade.

Further information on Black Swan and LionOre's other projects is available at www.LionOre.com.