$240,000 State Government co-funded drilling grant awarded

9 January 2012 ASX Code: WCN

$240,000 State Government co-funded drilling grant awarded to

White Cliff Minerals Highlights

• $90,000 drill funding awarded for Lake Johnston nickel sulphide targets

• $150,000 drill funding awarded for Jungle Pool VMS base metals targets

• Drilling scheduled to commence in February 2012

Introduction

The Company is pleased to announce the successful grant of two Royalties for Regions state government funding applications. The department of minerals and petroleum (DMP) has selected two White Cliff Minerals projects for co- funded drilling programs. The DMP will fund 50% of the total direct drilling costs up to a maximum of $240,000. The drilling will be directed at the following targets.

Lake Johnston Nickel Sulphide Target

The lake Johnston Kambalda style nickel sulphide target was identified during a moving loop electromagnetic (MLTEM) geophysical survey conducted in late 2011 at the 100% owned Lake Percy prospect, part of the Companies Lake Johnston Project. The Lake Percy prospect is 20km north of Norilsk's operating nickel mines Maggie Hays and Emily Anne (figure 1).
The conductive anomaly occurs within an ultramafic adcumulate sequence along the interpreted basal contact over a strike length of 700 metres with a depth extent of 100 to 300 metres. The Company has planned diamond drilling targeting the anomaly to depths of 300 metres.
The successful royalties for regions co-funded drilling grant from the state government effectively subsidises the cost of deeper drilling allowing the Company to economically testing the target to depths of 300+ metres. The company has scheduled drilling to commence in February.

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EM anomaly on basal contact of ultramafic

Figure 1 The Lake Percy prospect area showing detailed image of MLTEM conductive anomaly located adjacent to the basal contact of the Central Ultramafic Unit. Jungle Base Metals Target

The Jungle Pool massive sulphide zone is located 20km southeast of Kookynie and occurs within the overturned limb of a folded mafic to felsic volcanic sequence (figures2 &3). The massive sulphide zone dips 40-50 degrees to the north east over a strike length of 1700 metres and has a depth extent of 120-1000 metres. The anomaly is open along strike in both directions and at depth.
During March 2011 the company drilled 7 reverse circulation holes to depths of up to 250 metres to test a geophysical anomaly for volcanic massive sulphides. The initial drilling intersected wide zones of iron rich massive sulphides within altered mafic volcanic rocks. The sulphide zone occurs in the same volcanic sequence that hosts Jabiru Metals, Jaguar, Teutonic Bore and Bentley Cu-Zn-Ag-Pb deposits 120 km to the North.
Laboratory analysis of the massive sulphide zones in the deeper drilling has identified two weakly anomalous base metal zones of 4 metre zone of elevated copper (0.1%) at the oxide-massive sulphide interface at around 80 metres depth in JPRC003 and 4 metres of elevated zinc (0.15%) within fresh sulphides at 104 metres depth at the basalt- sulphide contact in JPRC007.Analysis of the massive sulphide drill rock chips via Scanning Electron Microscope (SEM) at the CSIRO facility in Perth has identified the copper minerals chalcopyrite and chalcocite.
Significantly, detailed geological logging has identified a silica cap over the massive sulphides and weak quartz sulphide stringer alteration zone in the footwall of the deposit indicating that the sulphides have originated from a hydrothermal system. The Company believes the results are indicative of the outer zones of a volcanic massive sulphide (VMS) base metals system.
The successful royalties for regions co-funded drilling grant from the state government effectively subsidises the cost of deeper drilling allowing the Company to economically testing the target to depths of 600 metres.

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Jungle Pool
VMS Target

Figure 2The Mt Remarkable and Jungle Pool project areas with local nickel, gold and VMS targets

VMS Target 2
Discovery Holes JPRC003
and JPRC004 (same location)
VMS Target 1

Figure 3Detailed image of the VMS conductive anomaly which is located along the contact of a mafic to felsic volcanic sequence. White Cliff Minerals Limited 3

For further information please contact: www.wcminerals.com.au [e-mail]

Todd Hibberd
Managing Director
Mike Langoulant
Executive Chairman
Rodd Boland
Investor Relations Director - Sydney

0408 969609

[phone]

About White Cliff Minerals Limited White Cliff Minerals Limited is a Western Australian based exploration company with the following main projects. Chanach Copper-Gold Project: The Company owns 45% of this 83 square kilometre project that is located in the KyrgyzRepublic350km west-southwest of the capital city of Bishkek. The Chanach project is located in the western part of the Tien Shan Belt, a highly mineralised zone that extending for over 2500 km, from western Uzbekistan, through Tajikistan, Kyrgyz Republic and southern Kazakhstan to western China. Mineralisation occurs as porphyry and epithermal systems developed within magmatic arcs, and orogenic type gold deposits that are structurally controlled. Major deposits located within 100km of Chanach contain up to 93 million ounces of gold and 25 million tonnes of copper. Initial work indicates that the project may host porphyry and skarn style gold and copper mineralisation. Sampling during 2007-2009 has identified several areas containing gold values of up to 40 g/t and copper values of up to 5%. Laverton Gold Project: The project consists of 1200 square kilometres of tenement applications in the Laverton and Merolia Greenstone belts. The core prospects are located 20km south of Laverton in the core of the structurally complex Laverton Tectonic zone immediately south of the Granny Smith Gold Mine (3 MOz) and 7 kilometres east of the Wallaby Gold Mine (7MOz). In addition, applications are pending over a large part of the Merolia Greenstone belt immediately Southwest of Laverton. Mount Remarkable Project: The project covers 450 square kilometres and is located approximately 170 km N-NE of Kalgoorlie and about 25 km SE of Kookynie in the Northern Goldfields. Included in the project area are the historic gold mining centres of Mt Remarkable and Yerilla which consists of several old workings. Major gold mines in the surrounding area include Sons of Gwalia, Tarmoola, Carosue Dam, Granny Smith, Wallaby and Sunrise Dam. The project includes several areas adjacent to and along strike from existing nickel deposits at Aublis, Yerilla and Boyce Creek. These deposits form Heron Resources Yerilla Nickel Project which contains 135 Mt @ 0.77% Nickel and 0.05% Cobalt. White Cliff Nickel Project: The project which covers over 1,200 square kilometres in the Merolia section of the Laverton Greenstone Belt situated 60 kilometres south-east of Laverton WA. The region contains the Irwin-Coglia and Mineral Patch Hill nickel deposits and Fish and Lord Byron Gold deposits. The project has been joint ventured with a Korean consortium, comprising Daewoo Intl and the 100% government owned Korea Resources Corporation. The Korean consortium are earning up to 50% of the project by the expenditure of up to $5 million over 3 years. Lake Johnston Project: The project covers over 1400 square kilometres in the Lake Johnson Greenstone Belt, which contains the Emily Ann and Maggie Hayes nickel sulphide deposits. These mines have a total resource of approximately

140,000 tonnes of contained nickel. The project area was previously held by Norilsk and has excellent prospectivity for both komatiite associated nickel sulphides and amphibolite facies high-grade gold mineralisation.

Ghan Well Project: The project covers an area of 83km2 located approximately 40km South-West of Laverton. The project is centred on a 6km long nickeliferous ultramafic unit. Minara Resources is currently mining from the Murrin East Pit along strike from the Company's recent drilling. The cumulate textures observed in the ultramafic unit suggest the unit is prospective for nickel sulphide mineralisation at depth.

The Information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Todd Hibberd, who is a member of the Australian Institute of Mining and Metallurgy. Mr Hibberd is a full time employee of the company. Mr Hibberd has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the `Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the JORC Code)`. Mr Hibberd consents to the inclusion of this information in the form and context in which it appears in this report.

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Tenement Map, Australia A regional geology and location plan of White Cliff Minerals Limited exploration projects in the Yilgarn Craton, Western Australia

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Project Map- Kyrgyz Republic Location of the Chanach Copper-Gold Project

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