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1 ASX Release: 19 Th August 2008 ASX Code: VNS VENUS ENTERS NEW DIAMOND EXPLORATION JOINT VENTURE ADJACENT to ARGYLE DIAMOND

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1 ASX Release: 19 Th August 2008 ASX Code: VNS VENUS ENTERS NEW DIAMOND EXPLORATION JOINT VENTURE ADJACENT to ARGYLE DIAMOND ABN: 99 123 250 582 ASX Release: 19 th August 2008 ASX Code: VNS VENUS ENTERS NEW DIAMOND EXPLORATION JOINT VENTURE ADJACENT TO ARGYLE DIAMOND MINE Venus Resources Limited ("Venus Resources" or "Company") is pleased to announce a new joint venture in its search for a diamond bearing lamproite pipes north of the Argyle Diamond Mine, under younger cover rocks. The Company has entered into a joint venture agreement with Seaward Holdings Pty Ltd (a company controlled by Mr Matthew Hogan, a director of Venus Resources) ("Seaward") over tenement E80/3359 ("Tenement") which is located adjacent to the Argyle Mining Lease and also adjacent to E80/3253 owned 95% by Venus Resources. Under the terms of the joint venture, Venus Resources may earn a 70% equity in the Tenement by completing a bankable feasibility study on any diamond deposit found. Until completion of the bankable feasibility study, Venus Resources will have no interest in the Tenement. There is no minimum expenditure commitment (except to keep the Tenement in good standing) and Venus Resources may withdraw from the joint venture at any time. The key terms of the joint venture agreement are set out on page 4 of this release. Information on the Tenement and Report highlights E80/3359 is located 20 kilometres from the Argyle Diamond Mine and covers an area of approximately 21 square kilometres. A large proportion of the Tenement is covered by Cambrian aged basalt (600 million years old) which Venus Resources considers has the potential to hide an undiscovered lamproite pipe. Work on the Tenement over the last 15 years has been non-existent due to Aboriginal land right issues. The solid relationship established between Venus Resources and the traditional family groups has now facilitated access and exploration to the ground the subject of the Tenement . Please Direct Enquiries to Simon Coxhell Venus Resources Limited Executive Director Mezzanine Level, BGC Centre Mobile: 0419833127 28 The Esplanande, Perth 6000 1 The independent Directors of the Company commissioned an Independent Consulting Geologists Report ("Report") on the Tenement, a complete copy of which is appended to this release. Highlights from the Report are as follows: The main target in E80/3359 is a low-lying valley consisting of Cambrian basalt with high ridges to the south and west. The ridges consist of older Lissadell Formation quartzite. A creek flows southeastward through the valley and cuts a steep gorge in the quartzite ridge to the south of the target. The south ridge is controlled by a major fault which trends northeast through the tenement and intersects with the Glenhill fault zone beyond the licence area in this direction. The fault is considered to be important as it represents a major splay on the Glenhill Fault. The gorge to the south of the target area is thought to be controlled by a local north-south trending fault or lineament. This relatively minor structure is significant as it represents a cross-trend which may produce a dilational zone on the north side of the intersection with the main northeast trending fault. This conceptual dilation zone, now buried by younger basalt, represents the main target in E80/3359. Significantly, the geometry of the faults at Target 1 is similar to the geometry of the Razor Ridge and Gap Faults at Argyle. That is, a secondary fault trending approximately east-west intersects with the primary fault trending north-south. Furthermore, the dimensions of the valley are roughly the same size as the Argyle pipe before it was tilted down-to-the-north in the Devonian. Based on the present data, it is difficult to estimate the thickness of the Cambrian basaltic rocks which fills the valley. If the relatively shallow dipping edges of the Proterozoic outcrops are followed down-dip, the Cambrian basalt may be somewhere between 50-250 metres in depth. The writer is of the opinion that Target 1 satisfies the geological requirements on which the exploration concepts at Argyle North are based: • It lies within the Glenhill Fault Corridor, • the fault pattern at the target is similar to Argyle, • the cover rocks may be relatively thin and • the valley could accommodate a substantial intrusion. The report goes on to conclude that “Venus Resources has the potential via the completion of a bankable feasibility study to earn a 70% interest in E80/3359. This is a high risk high reward exploration play based on sound geological concepts. 2 The opportunity to acquire additional ground in the highly prospective structural corridor to the north of the Argyle Diamond Mine where diamond bearing lamproite pipes may have been intruded but be buried below younger cover rocks and therefore hidden from discovery is considered consistent with the stated objectives of Venus Resources and previous tenement acquisitions and work programs completed by them. Success in high risk exploration requires the ability to relatively cheaply test a range of targets and quite often the more targets tested the greater chance of success. Targets have been defined within E80/3359 where this cover sequence may be relatively thin and/or where the fault patterns suggest that intrusions are more likely to have occurred. These targets require drill testing to test for the presence of buried lamproite pipes. ” 3 Planned work programme A work programme designed to systematically drill test the target areas has been planned with site clearances complete and drilling is due to commence in the seconjd week of September. For further information contact: Simon Coxhell 0419833127 Key Terms of Joint Venture Agreement • Venus Resources is to reimburse Seaward $6000 for previous expenditure on the Tenement. • Venus Resources is to fund a bankable feasibility study after which it will earn a 70% interest in the Tenement. Venus Resources will have no interest in the Tenement until completion of the feasibility study. • Venus Resources is responsible for sourcing funding for 100% of the costs of any mine development on terms reasonably acceptable to Seaward. • There is no minimum expenditure on the Tenement, except to maintain the Tenement in good standing ($20,000/annum). • Venus Resources may withdraw from the joint venture at any time, providing the Tenement is in good standing. • There is a five year time commitment for completion of a bankable feasibility study with extensions to be granted if delays are beyond Venus Resources' control. The information in this report that relates to Exploration and Geological Work and Concepts is based on information compiled by Simon Coxhell and Richard Russell who are members of the Australian Institute of Mining and Metallurgy and are consultant of the Company. Mr Coxhell and Mr Russell have sufficient experience which is relevant to the style of mineralsiation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competant Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Coxhell and Mr Russell consent to the inclusion in the report of the matters based on information in the form and context in which it appears. 4 INDEPENDENT CONSULTING GEOLOGIST’S REPORT E 80/3359 1st August 2008 The Independent Directors Venus Resources Mezzanine Level BGC Building 28 The Esplanade Perth WA, 6000 Dear Sirs, At the request of Venus Resources (Venus), R. Russell and Associates (RR&A) has prepared this independent geological report on the diamond exploration project within E80/3359, located approximately 20 kilometres from the Argyle Diamond Mine. The project is located in Western Australia’s East Kimberley area and is currently held by Seaward Holdings Pty Ltd (a company controlled by Mr Matthew Hogan, a director of Venus Resources Limited and therefore a related party of Venus Resources Limited). The report has been prepared in accordance with the Code and Guidelines for Assessment and Valuation of Mineral Assets and Mineral Securities for Independent Expert Reports (the Valmin Code) which is binding upon Members of the Australasian Institute of Mining and Metallurgy (“AusIMM”). It has been prepared by J. Richard Russell, principal of R. Russell and Associates (RR&A) who is a Member of the AusIMM and a qualified geologist with 25 years experience in mineral exploration. Neither the writer, nor any of his associates or employees have any interest either direct, indirect or contingent neither in Venus nor in any of the mineral assets included in this report nor in any other Venus asset nor has any such interest existed previously. Site visits have been made to the project areas within E80/3559. Information used in the preparation of this report has been derived from site visits, technical information provided by Venus and other publicly available data. For the purpose of Sections 731 to 733 of the Corporations Act, RR&A were involved in the preparation of the Independent Consulting Geologists Report of Mineral Exploration Properties included in the original Venus Resources Limited Prospectus (dated 23rd April 2007). A detailed geological report follows however in summary: We are of the opinion that: 5 a) The targets within E80/3359 are conceptually sound and relate to the intersection of major fault structures with the potential to provide conduits of potentially diamond bearing lamproite pipes emplaced at a similar time to the Argyle pipe dated at approximately 1.2 billion years old. b) These targets are located underneath Cambrian aged (600 my) basaltic rocks which would have hidden any pipes present from discovery. c) Venus has a satisfactorily and clearly defined exploration and expenditure programme focused on testing the targets via reverse circulation drilling. Drilling is the most effective method to explore for undiscovered diamond bearing lamproite pipes under the younger cover rocks.
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