Company Information for Vulcan Resources Ltd

ASX-VCN; FRANKFURT-VUA; OSLO BORS-VCNR

www.vulcanresources.com.au

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ASX; VCN

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Company Statement

Vulcan Resources Limited is an emerging base metals development and exploration company in Finland.

The Company’s primary focus is the development of its 100% owned Kylylahti copper-cobalt project located in eastern Finland which has a Resource of 7.85 million tonnes grading 1.17% copper, 0.24% cobalt, 0.22% nickel, 0.49% zinc and 0.70 g/t gold.

Projected production over a mine life of a minimum of 10 years is 800,000 tonnes per annum to produce an average 9,000 tonnes per annum (18 million pounds) of copper, 12,000 ounces of gold in copper concentrates, 1,900 tonnes per annum (4.2 million pounds) of cobalt, 1,400 tonnes per annum (3.1 million pounds) of nickel and 3,800 tonnes of zinc (8.4 million pounds) in bulk concentrates.

The project is fully permitted and site works will commence in mid 2008.

Vulcan is also a successful nickel explorer at its 95% owned Kuhmo Nickel Project where there is a Resource containing 30,000 tonnes of nickel metal.

Vulcan also has extensive vanadium, nickel-copper and platinum group element exploration projects in northern Finland.

Current Operations

Kylylahti Copper-Cobalt Project
The mine, concentrator and associated facilities will be located near the town of Polvijärvi in Eastern Finland, some 20 kilometres from the town of Outokumpu. Polvijärvi is some 400 kilometres north-east of the capital Helsinki and is accessible via a 40 minute flight to nearby Joensuu. Infrastructure and labour supply in the area are excellent.

A definitive feasibility study on the 100% owned Kylylahti Copper Project was completed in April 2008. The Definitive Feasibility Study was managed by SNC-Lavalin Australia Pty Ltd and was subject to review and optimisation prior to release.

The proposed surface infrastructure and orebody lie within a granted mining lease. A number of claims are also held for exploration potential. The mining lease to the north of Kylylahti which holds the shallow extension is held by Mondo Minerals and Vulcan has acquired the base metal rights within this lease.

Kuhmo Nickel Joint Venture
The Kuhmo Nickel Joint Venture (“Kuhmo Project”) contains a number of Archean komatiite-hosted nickel sulphide deposits and a large number of highly prospective exploration targets within the Karelian Craton of eastern Finland. The Kuhmo Project is 95% owned by Vulcan Resources Limited (“Vulcan”) and is a joint venture with Polar Mining Oy (“Polar”). The project has approximately 50 square kilometres of strategic landholding that extends between the regional centres of Kuusamo in the north and Kuhmo in the south.

The Karelian Craton is a typical Archean granite-greenstone terrain with greenstone belts comprised of ultramafic, mafic and felsic volcanic rocks and minor sedimentary rocks. The ultramafic rocks host massive and disseminated nickel sulphide mineralisation similar to well endowed Archean greenstones in Australian and Canada.

Haukiaho
The Haukiaho property is located near Posio in northern Finland and is related to the Koillismaa Layered Igneous Complex (KLIC), which is one of the numerous mafic layered intrusions emplaced in the Fennoscandian Shield some 2.4-2.5 Ga ago. The igneous stratigraphy of the KLIC is generally divided into some 50–250 metre thick marginal series hosting very extensive but generally low-grade nickel-copper-platinum group elements-gold mineralisation and up to 3,000 metre thick layered series. The lower and middle portions of the layered series are composed mainly of norites and gabbronorites and the upper portion comprises leucogabbros, anorthosites and vanadium-enriched magnetite gabbros, which can reach up to 200 metres in thickness. The Syöte and Porttivaara vanadium projects of Vulcan as well as the past Mustavaara vanadium mine, which is located only some 5 kilometres south-east of the Haukiaho mineralisation, are related to the magnetite gabbro horizons.

A scoping flotation test by Lakefield was done from a 50 kilogram sample collected from large mineralised boulders on the Haukiaho property. The feed grade was 0.25% nickel, 0.37% copper, 0.57 g/t palladium, 0.23 g/t platinum and 0.31 g/t gold. The best result of the test series returned 64% nickel and 89% copper recoveries into a concentrate grading 5.0% nickel and 9.7% copper. The lower total nickel recovery was a result of the presence of non-sulphide nickel, which will not be recovered by flotation. Precious metals recoveries were 80.1% for platinum, 79.8% for palladium and 65% for gold.

Vulcan’s Vanadium projects and Finnish steel mills

Finland is located in the middle of the Fennoscandian Shield, which is the largest exposed area of Precambrian rocks in Europe and is geologically similar to other shield areas hosting world-class mining camps especially in Canada and Western Australia.

The Early-Proterozoic layered intrusions located in northern Finland and in north-western Russia constitute a significant chromium, platinum group element, vanadium and nickel province also in global scale. The only known layered intrusions in Western Europe with any significant potential for these commodities are located in Finland. These fertile intrusions can be divided into two age groups, the 2,440 Ma and the 2,050 Ma layered intrusions, which host slightly different type of mineralisation.

Layered intrusions are emplaced through the cratonised Archaean basement and possibly earliest Proterozoic supracrustal rocks between the Archaean basement complex and the overlying (younger) Proterozoic supracrustal sequence emplaced in sheet or sill like chambers. Soon after their emplacement, intrusions were broken by vertical movements and split into a number of structural blocks. The consequent uplift and erosion period removed upper parts of most intrusions blocks and their original roof rocks and in some blocks erosion went so far that only lowest stratigraphical levels ('roots') have preserved. At same time the 2,050 Ma layered intrusions located in northern and eastern Finland were emplaced through the locally rifted Archaean crust. The tilting of intrusions and their roof and footwall units in their present attitude took place in the Sveco-Karelian orogeny roughly 1900-1800 Ma ago.

Vanadium mineralisation is typically associated with magnetite gabbros representing the upper stratigraphic units of layered intrusions. In the Porttivaara block of the Koillismaa layered igneous complex the magnetite gabbro layer was mined as vanadium ore by Rautaruukki Oy in 1970's and 1980’s. Other significant vanadium bearing magnetite gabbro horizons are related to Syöte, Koitelainen and Akanvaara intrusions as well as to the Monchegorsk and Imandra intrusions in north-west Russia. Vulcan has acquired a significant land holding on the vanadium resources related to Porttivaara, Syöte, Koitelainen and Akanvaara layered intrusions.

Geographical Spread

Finland is mining-friendly country within the European Union that offers the exploration industry a favourable investment and operating environment with significant potential for new discoveries - many commodities are still very much under-explored. Finland is also close to major markets and has processing facilities for many minerals.

Board of Directors and Key Management

Board of Directors
Mr Barry Eldridge	(Chairman)
Dr Alistair Cowden	(Managing Director)
Mr Heikki Solin	(Non Exec. Director)
Mr Michael Blakiston	(Non Exec. Director)
Ms Fiona Harris	(Non Exec. Director)
Mr Eric Hughes	(Chief Financial Officer/Company Secretary)
Mr Anthony Begovich	(Group Finance Manager and Company Secretary)

Mr John Brodziak	(Project Manager - Kylylahti)
Mr Campbell Baird	(General Manager Operations)
Mr Jarmo Vesanto	(General Manager Finland)
Mr Nicholas Walker	(Exploration Manager)
Mr Seppo Tuovinen	(Mining Manager Finland)
Mr Bradley Brown	(Engineering Manager)

Company Address

Ground Floor
1 Altona Street
West Perth, Western Australia, Australia 6005


Telephone:	+61 8 9485 2929
Facsimile:	+61 8 9486 4933
Email:	admin[at]vulcanresources.com.au
Website:	http://www.vulcanresources.com.au

Additional Address/Key Contact

PO Box 1081
West Perth
WA 6872

Finland Office
Kummunkatu 34
FIN-83500 Outokumpu
Finland
Telephone: +358 (50) 410 9552
Facsimile: +358 (13) 830 228
Email: jvesanto@vulcanresources.com.au

Capital

224.5m shares
22.6m options

Annual General Meeting

November

Year End

June 30

Nominated Brokers

Hanson Westhouse LLP

Nominated Advisors