South Boulder Mines Ltd (ASX; STB) announces that Dr Chris Gilchrist has agreed to join the Board’ as a non-executive Director with immediate effect.

Dr Gilchrist is an internationally renowned mining executive with over 30 years experience gained at senior management and director level within a variety of operating mining companies. Dr Gilchrist has significant experience in potash and has successfully built large mining operations in Africa. Since December 2010 he has been managing the Colluli Definitive Feasibility Study (DFS) and travelling to Eritrea extensively. The DFS is due to be complete in 2013 with production scheduled for 2016 or sooner.

Dr Gilchrist is currently a director of the consulting firm Gilchrist Mining Ltd, based in Ireland, and has previously served on the boards of Kenmare Resources plc and Cleveland Potash Limited.

CEO and Managing Director Lorry Hughes commented on the appointment.

“Chris joining the Board of South Boulder is a very positive development for the Colluli Project and fits well with our expansion plans. His experience is highly regarded in the potash industry and invaluable as

South Boulder transitions from developer to potash producer. His expertise covers all facets of the mining life cycle including feasibility, mineral processing, capital raising, contract negotiation, project management, ramp-up and operations. Dr Gilchrist is based in Europe which gives us a permanent presence in the key financial centre for African mining projects.

This is a great endorsement for the Company and the Colluli Potash Project in South Boulder being able to secure such a high calibre Director. ”

Ends

Please find below an excerpt from an interesting article by Dr. Alex Cowie in ‘Diggers and Drillers’ about South Boulder Mines, Eritrea, the Red Sea and the future potential of potash in terms of increasing global demand for fertilizer products needed to improve crop efficiency and agricultural output.

I’ll be up front about this. South Boulder is a speculative investment.

It may not be for the faint of heart. Its potash deposit is still in its infancy. And it’s two or three years until production. It’s also based in one of the riskier parts of Africa, Eritrea: a country that still disputes its border with Ethiopia.

So why have I bypassed my usual insistence on low-sovereign risk countries?

Because this potash deposit is too good to miss.

South Boulder is at early exploration stage of its 100% owned Colluli potash project. Progress has been very fast here. Drilling started on the edge of the Red Sea just six months ago, and the company has already announced its first resource figure of 548 million tonnes of potash. Let me put that in context. It is already almost half the size of Potash Corp’s 1132-million-tonne resource… currently the largest in the world. Not bad for half a year’s work.

But what is even more remarkable is that this 548-million-tonne figure only factors in THREE of the 17 holes drilled so far. The other 14 are being tested right now. And the results will be factored into a new resource figure that you can expect to see before the end of March.

The company believes the resource figure will grow much higher, as they more than doubled the upper range of the exploration target to 1250 million tonnes. Whether this happens or not remains to be seen. But it would make it the largest deposit in the world. Is it really possible? Let’s just say I reckon they’re being conservative! If you take into account that three holes has enabled a JORC compliant 548 million tonnes (Mt) inferred resource, you could infer 17 holes gets you to over 3100 Mt.

Of course, nothing is ever that simple in mining. But even if you halve that estimate – to be safe – you’re still looking at 1550 Mt. And that still exceeds Potash Corp’s figure. And the company is planning a lot more drilling yet.I need to point out that most of this will be in inferred category, which is only the first hierarchy of resource classification. More good drilling results between the current holes will be needed to upgrade it to a ‘measured’ resource that you could be more confident of.

The 17 drill results so far have been very consistent. But this is typical of a deposit created by an ancient sea bed drying out. Millions of years ago this was an inlet of the Red Sea.

The land changed and the inlet was cut off from the sea. So it dried up into a twenty metre thick layer of potash, which then got covered over by a shallow layer of rock.

So it’s not like a gold or copper deposit where the grade can vary from one metre to the next. Potash deposits are more like a coal deposit, where you get a predictable blanket lying across the whole basin. It’s also important to point out that they have only scratched one small corner of their exploration license…..

To read the full article please visit http://www.portphillippublishing.com.au/osi/

Please note that Diggers and Drillers requires you to subscribe to their paid content to be able to read the full article.

South Boulder Mines Limited is an Australian-listed exploration and development company focusing on multiple gold, nickel and fertilizer prospects primarily located in Western Australia and Eritrea in North East of Africa. One of South Boulder’s main areas of focus is on its Duketon Greenstone Belt projects which contain the exciting new Rosie NiCu-PGE discovery.

The Company owns 100% of all gold prospects and participates in a farm-out Joint Venture with Independence Group NL (earning 70%) for nickel sulphide prospects within the same area.

South Boulder Mines Ltd has a 100% interest in the recently acquired Colluli Potash Project located in the Danakil Depression region of Eritrea (Africa) approximately 200km south east of the Capital Asmara.

South Boulder also has three (90-100%) owned fertilizer exploration projects in Western Australia, the Lake Disappointment Potash Project in the Gibson Desert, the Cardabia Phosphate Project in the Carnarvon Basin and the Georgina Basin Phosphate Project in the Northern Territory.

The Company’s existing fertilizer projects have also added value to the Company’s portfolio due to recent successful confirmation drilling at Colluli and increased global demand.

Given due diligence and valuation estimations based on discounted cash flow method and comparables, Arrowhead believes that South Boulder mines limited fair share value lies in the AS$1.17 to AS$8.08 bracket.

This valuation is based solely on the Duketon Nickel and Eritrean Potash project and does not take account of the potential value of the company’s Terminator Gold prospect. We have presented a comparable valuation based on Enterprise Value/resource and Enterprise Value /proposed capacity to ascertain the value the Nickel and Potash prospects respectively.

Please click on the link below to view the full ABID Report on South Boulder Mines Ltd

http://www.southbouldermines.com.au/images/uploads/101020_SOUTH_BOULDER_MINES_-_ABID_Report_-_20Oct10.pdf

Assays from South Boulder Mines’ (ASX: STB, SO3-Fra, SO3-BER) first complete hole at its fully owned Colluli potash deposit in Eritrea have exceeded the company’s expectations, confirming Colluli as a highly significant potash deposit.

The first true width assays from hole Col-004 confirm extensive shallow potash at Colluli including: - 7.72m of Sylvinite @ 25% KCl (16% K2O) from 28.68m depth; including 3.44m of Sylvinite @ 44% KCl (28% K2O) from 32.96m and; - 14.79m of Carnallitite + Kainitite @ 16% KCl (10% K2O) from 48.55m depth; including 3.20m of Kainitite @ 22% KCl (14% K2O) from 55.60m; including 4.20m of Kainitite @ 24% KCl (16% K2O) from 58.60m.

Lorry Hughes, managing director, said “this is an outstanding result to be able to drill high grades at such shallow depths.” “Hole Col-004 is the first complete hole we have received from the laboratory and we expect to have the remainder of the holes within two weeks.

It appears that Colluli is one of the shallowest potash deposits in the world and I expect the engineering study results to confirm a cheap capex and opex operation.”

Exploration work is continuing, including the commencement of a ground gravity survey at the end of October to help delineate structures that control mineralisation.

The gravity results together with the remaining chemical results will allow South Boulder to better target further resource delineation drill sites. The drill rig is still onsite and drilling is set to resume in early November.

To date potash has been intersected over a 4.5km2 area and it is planned to expand on this with the current drill program.

Data will be used to generate a geological resource estimate at year end and concurrent scoping study estimates and planning is well advanced. Information on the scoping study program and further exploration results will be released as it comes to hand.

South Boulder Mines has a market capitalisation of $68.1 million, 87.8 million shares on issue and $3.4 million cash at bank. Eritrea is a country in the Horn of Africa, bordered by Sudan in the west, and Ethiopia in the south.

Source: Proactiveinvestors

In accordance with ASX Listing Rule 17.1 South Boulder Mines (ASX: STB) has requested an immediate trading halt pending the release of drilling results from the Duketon Nickel Joint Venture.

The company has requested the trading halt end on the earlier of the commencement of normal trading on Wednesday, 7 April 2010 or when the announcement referred to above is released to the market.

The company said it is not aware of any reason why the trading halt should not be granted, nor of any other information necessary to inform the market about the trading halt.

South Boulder’s key projects are located within the state of Western Australia as well as in Eritrea focusing on multiple gold, nickel and fertiliser prospects. The company has an interest in the Colluli Potash Project located in the Danakil Depression region of Eritrea (Africa) approximately 200kms south east of the Capital Asmara. South Boulder also has a 100% interest in the Duketon Project in Western Australia. The Duketon Belt is located 120 kilometers north of Laverton in Western Australia and is considered prospective for gold, nickel sulphide and base metal mineralization. Source: (ProactiveInvestors)

Extract from the South Boulder Mines Ltd. (STB:ASX) AGM and Investor Presentation 2009 on the potentially “world class” buried evaporate potash project in Eritrea.

Factors speaking for Eritrea:

Stable Government ;

Supportive Government for foreign investment in mining and exploration;

Corporate tax rate 38%;

Government 10% free carry and after BFS has option to purchase an additional 30% equity participation interest at an independently determined price;

Other current mining activities: Nevsun Resources Ltd: NSU (TSX/AMX) Bisha Deposit

Chalice Gold Mines Ltd: (CHN.AX) Zara Project;

Mining Potash;

(Mineral) -Potash is important for agriculture ( as fertilizer) it improves texture and disease resistance of food.

Rising population and improving diets drive food consumption growth and potash demand;

Short- term decline in fertilizer use is not sustainable- irreplaceable,

Price estimates USD600- 900/ft for 2009- irreplaceable;

Colluli Project Eritrea:

Eritrean ports are close to major shipping routes to India, Asia and Europe;

Asia is major importer of potash;

Infrastructure;

Solar evaporation;

Geothermal energy;

Solution mining potential;

Cheap capital and operating costs;

South Boulder Mines Ltd. AGM Presentation 2009

South Boulder Eritrea

South Boulder’s sixth year as a publicly listed company has been one of consolidation and acquisition in exploration projects. During the year the company acquired a new, potentially world class potash project at Colluli in Eritrea.

The target is an evaporite hosted potash deposit. There was production from the region by Italian colonialists in early part of last century and extensive drilling was conducted from 1958 – 1968. Since 1968 there has been no work completed on the prospect.

The tenement was awarded to South Boulder in July. With several competing claims this was a testament to the good work that both Lorry and Liam have done establishing South Boulders credentials with the Eritrean Government.

I with Lorry made our first planning visit to the project in September. It was my first visit to Eritrea and I left with the feeling that it was a country that one can do business in. The other fertilizer projects located in Western Australia and the Northern Territory have, either been put on the back burner or traded.

The Duketon Project has not been neglected during the year. Independence have continued exploring the Bulge region with the discovery of definite nickel sulphide in some drill intersections at the Rosie and Bulge C2 Prospects.

Using Independence’s nickel drilling in the Bulge area and assaying the samples for gold, STB has made a new gold discovery, the Terminator Prospect. We are currently undertaking follow up drilling on this project. The coming year promises to be a very active one for the company and I thank my fellow directors and all our staff for their hard work and effort over the past year.

TERRY GRAMMER

Chairman

PDF: South Boulder Annual Report 2009