Discovery Metals (DME) – Quarterly Report

HIGHLIGHTS

Boseto Copper Project – Pre-Feasibility Study
Current project mineral resource of 49 million tonnes @ 1.2% Cu
Pre-Feasibility Study completed in July and key results announced
The Board of Discovery Metals Limited has approved the commencement of a Bankable Feasibility Study which is targeted for completion in mid 2009
PFS base case delivers an economically robust project with significant upside potential

Exploration & Infill Drilling
Discovery Metals secured an additional seven 100% owned prospecting licenses in Botswana covering 5,700 square kilometres. The new tenements are an extension of the company’s 6,400 square kilometre, 100% owned tenements bringing the total tenement holding on the Kalahari Copper Belt in north west Botswana, to 12,100 kilometres
Assay results from Reverse Circulation (RC) drilling at the Quirinus prospect (15 kilometres from current resources) were received including 4 metres @ 1.7% Cu and 13 g/t Ag, and 6 metres @ 0.9% Cu and 14 g/t Ag, including 2 metres @ 1.5% Cu and 25 g/t Ag.
Announced in July, the infill drilling results increase Plutus prospect strike length by 1,000 metres to 8,500 metres while remaining open to the south west

Corporate Activities
Mr Ribson Gabonowe, a Botswana citizen, was appointed to the company’s Board.
The company’s Botswana copper project was re-named “Boseto Copper Project”.

At the end of the quarter, Discovery Metals held AUD $5.6 million in cash.

For more information please go to www.discoverymetals.com.au