Kagara Limited (ASX:KZL) Einasleigh Copper Project Resources Table

Perth, Australia (ABN Newswire) - Kagara Limited (ASX:KZL) advises that as announced on 19 October it will proceed to complete the proposed acquisition of Einasleigh Copper Project in North Queensland from Copper Strike Limited (ASX:CSE) after the transaction was approved by CSE shareholders on 14 October 2011.

The Project comprises Indicated and Inferred resources of 15 million tonnes @ 0.84% copper at Kaiser Bill and 1.1 million tonnes at 2.9% copper at Einasleigh containing 158,000 tonnes of copper. In addition to the copper deposits, Einasleigh also hosts four lead-zinc deposits containing over 250,000t of zinc, which will be the focus of extensional and exploration drilling in the coming 18 months. The Company plans a thorough evaluation of work done to date within the 450 sq km tenement package to highlight areas for further investigation.

For the Einasleigh Copper Project Resources Table, please view:
http://media.abnnewswire.net/media/en/docs/70249-ASX-KZL-563045.pdf

JORC Competent Person's Statement

This report, so far as it is pertains to ore, mineralization and resources, is based on information compiled by and as reported upon by Mr Joe Treacy, an employee of Kagara Ltd, and who is a member pof the Australian Institute of Geoscientists and has over five years experience which is relevant to the style of mineralistaion and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2004 Edition of the the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Treacy consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

About Kagara Limited:

Kagara Limited is an S&P ASX 200 Australian resources group and one of Australia's lower cost producers of zinc, copper, lead and nickel.

The Company's base metals operations centre on the Mt Garnet-Chillagoe region of north Queensland, with three underground mines, one open pit mine and three processing facilities and a substantial production profile targeting copper production of 23,000 tonnes in FY2011 and zinc production of 100,000 tonnes in FY2012.

Production is also underway at the Lounge Lizard Nickel Project in Western Australia at a targeted nickel ore production rate of 50,000 tonnes per annum.

In addition, Kagara holds an extensive portfolio of high quality development and exploration assets, including the world-class Admiral Bay zinc-lead-silver-barite deposit in Western Australia, capable of delivering long term growth for the Company's shareholders well into the future.

Source:

Kagara Limited

Contact:

Joseph Treacy
Executive General Manager Minerals & Business Development
Kagara Limited
Tel:  61-8-9481-1211