Hemisphere Resources has 70% of the Mulgarrie Nickel Project located in a significant nickel province 75km NNE of Kalgoorlie-Boulder bounded by the Silver Swan, Scotia and Carr Boyd mines all of which are known for high grade nickel sulphide production.The remaining 30% is owned by Falcon Minerals.

Key drill results to date include the following:

• Intersected mafic and ultramafic lithologies
• Anomalous nickel and copper in drilling
• 4m at 1.23% Ni (from 44m)
• 4m at 0.73% Ni (from 36m)
• 12m at 0.42% Ni (from 44m)
• 16m at 0.55% Ni (from 20m)

Fig 1: Mulgarrie Nickel Project Location

Drilling targets had been identified through previous exploration and nickel and copper anomalies demonstrated. Hemisphere is exploring to identify massive nickel sulphides.

Exploration Program

The Mulgarrie Nickel Project covers prospective Archaean komatiite hosted nickel sulphide mineralisation typified by deposits such as the nearby Silver Swan and Black Swan deposits and those surrounding the Kambalda Dome. Exploration is focusing on near surface and deeper drill targets.

Massive Ni sulphides have been identified of a pattern similar to those at Silver Swan (refer Fig 2 below)

• Two diamond drill holes with 3D down hole EM have been completed with further drilling planned.

• Disseminated Ni sulphides have been identified of a pattern similar to those at Black Swan (refer Fig 2 below).

• An aircore drilling programhas been completed with further drilling planned.

Fig 2: Mulgarrie Project Exploration Program

Drill Results

Drumstick Prospect

Hemisphere Resources completed a geological interpretation for the Mulgarrie Nickel Project in late December 2008. Three holes in the vicinity of the target zone were reviewed and show the contact zone between Ultramafics and Basalt. Cumulate texture is demonstrated within the Ultramafics, with Sulphide zones shown within the Ultramafics and Basalt. Anomalous nickel was demonstrated from diamond drill hole HMDD002 (previously announced with anomalous nickel identified). Results are shown below as Table 1.

Table 1: Significant Drill Results HMDD002 Drumstick Prospect (Dec '08)

Note: NSA is no significant assay returned.

Fig 1: Drill Plan and Section Line for Drumstick Prospect

Fig 2: Oblique Section A‐B Drumstick Prospect

The target was identified by an Electromagnetic (EM) geophysical survey previously announced to the ASX. This area was selected because of its komatiitic stratigraphy, a magnetic anomaly and an EM anomaly that suggested there may be a sizeable lens of sulphide lying relatively close to the surface. Drilling to date has been sub parallel to the ultramafic basalt contact but supports the potential for nickel sulphides within the target area. The contact between the ultramafic and the basalt zones has not been adequately tested in the area of the previously defined EM anomaly. (see Fig 2).

Other Results and Activity

Hemisphere resources collected all known data relating to the Mulgarrie project. Information obtained included the results from geophysical surveys, geochemical sampling, shallow RAB (rotary air blast drilling), aircore drilling, limited deeper RC (reverse circulation) drilling and diamond drilling.

Following evaluation and analysis, a ground-based B-field geophysical survey was carried out and initial drill programs have been implemented, with further drilling planned.

Drilling programs and geophysical surveys are being accompanied by a systematic geological interpretation to develop a better understanding of the local structural framework controlling the mineralisation.

Previous drilling showed numerous nickel and copper intercepts, including 16m at 0.55% Ni from 20m and 36m at 0.16% Ni at 116m depth. A further hole intersected zones of Pyrite and Pyrrhotite over thicknesses up to 2m which supports the search for nickel at depth. Results indicate the potential for open pit and underground discovery.

Fig 3: Mulgarrie Project Drill Results