SOUTH PERTH, WESTERN AUSTRALIA--(Marketwire - January 31, 2008) - Extract Resources (TSX: EXT)(ASX: EXT) is pleased to announce a major new uranium discovery at their Rossing South exploration target which is part of their wholly owned Husab Uranium Project in Namibia.

SUMMARY:
- Outstanding drill hole assay results hosted within uraniferous alaskite confirm a major new uranium discovery beneath desert sands, about 7 kilometres south of the Rossing Uranium Mine. Two of the three discovery holes ended in mineralisation and results include:

--------------------------------------------------------
Hole ID From To Mineralised zones
(m) (m)
--------------------------------------------------------
RBA001 89 129 40 metres @ 240 ppm

including 89 97 8 metres @ 998 ppm
--------------------------------------------------------
RBA002 60 160 100 metres @ 265 ppm

Including 91 160 69 metres @ 321 ppm
--------------------------------------------------------



- Reconnaissance drilling on lines 1.6 and 3.2 kilometres to the south and along-strike, has encountered further anomalous zones. Extract Resources Managing Director, Peter McIntyre, said that this immediate success indicates enormous potential for the Rossing South target.

"The discovery so early in the program is an outstanding result. This is only the first line on a 15 kilometre strike target, and grades are similar to the Rossing mine grades. These early results cannot be understated, and confirm Rossing South as a world-class target."

The discovery holes are approximately 1.5 kilometres from Extract's northern boundary, which it shares with the world-class Rossing uranium province, and 7 kilometres south of the Rossing Mine itself. The Rossing South target area extends for 15 kilometres onto Extract's licence, and is covered by desert sands up to 50 metres thick. This is the first time this target has been drilled.

A core hole is currently being drilled beneath the discovery holes, and a scissor RC hole will also be drilled to check the orientation. Reconnaissance drilling has also begun testing the bedrock 1.6 and 3.2 kilometres to the south and along the interpreted strike. Anomalous zones of uraniferous alaskite have been identified, and deeper drilling into these zones is now also planned.

DISCOVERY DETAILS
The discovery holes are approximately 1.5 kilometres from Extract's northern boundary, which it shares with the world-class Rossing uranium province. This area hosts the main Rossing deposit, which accounted for 8% of the world's U3O8 production in 2007. Several other deposits are also located on the Rossing mining licence. Southern strike extensions of the same stratigraphy that host the Rossing deposits trend under desert sands onto Extract's licence; this surficial cover partly explains why there has been no previous exploration on Extract's Rossing South area (see Appendix 1).

Extract's geologists originally identified the Rossing South target after noting secondary uranium (at surface) and also sourced aeromagnetic and radiometric data that indicated the same stratigraphy which hosts the giant Rossing deposits (Rio Tinto 69%) extends for 15 kilometres onto Extract's licence EPL3138. This 15 kilometre trend represents an enormous target for future exploration.

1.6 kilometre spaced drill lines with 80 metre spaced holes were planned to test the bedrock under the surficial cover, which is generally about 40m thick in the region. From initial drilling of the first drill line, indications of alaskite were identified over a wide zone of at least 160 metres. Follow up drilling included a line of 80 metre spaced angled holes, to a depth of 160m, which was the depth capacity of the drill rig.

Two of the first three deeper holes on the first traverse of the Rossing South target intersected massive zones of uranium mineralisation. The Company advises that these results, of the first ever drilling of the Rossing South target, constitute a new discovery.

The first two holes intersected 40 metres @ 240 ppm U3O8, and 100 metres @ 265 ppm U3O8. Significantly, RBA001 and RBA002 ended in mineralisation, as the drill rig reached the limit of its drilling capability. Full details are shown in Appendix 3.

An orientated core hole is currently being drilled beneath RC holes RBA001, 2 and 3 to confirm the geological and structural interpretation of the area. This drilling is expected to be completed in February 2008. Additional RC and diamond drilling is also being planned.

Lines of RC drilling have also been partly completed 1.6 and 3.2 kilometres south of the discovery Line 1 (see Appendix 2). Alaskite has been intersected in several holes with hand held spectrometer readings indicating anomalous uranium levels in two holes on Line 2 and three holes on Line 3. These drill lines are still incomplete and the full extent of the alaskite zone undetermined. Assay results are awaited. Drilling on this significant target zone will continue throughout 2008.

It should be noted that the potential extra value of Rossing South to the Company is in addition to the resource definition programme currently underway on the Ida Dome project, which is 20 kilometres to the south of Rossing South. If drilling at Rossing South continues to return such significant results it is possible that the Company could undertake feasibility work on developing two mining projects within the Husab Uranium Project, one centred on the Ida Dome prospects and one centred on Rossing South.

The information in this report that relates to Exploration Results is based on information compiled by Mr Martin Spivey, who is a Member of The Australasian Institute of Mining and Metallurgy and Mr Andrew Penkethman who is a Member of the Australian Institute of Geoscientists. Mr Spivey and Mr Penkethman are both full time employees of the Company. Mr Spivey and Mr Penkethman have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Spivey and Mr Penkethman consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.

To view APPENDX 1, Figure 1: Husab Uranium Project location plan highlighting the Namib Desert cover over the Rossing South area and Figure 2: First vertical derivative aeromagnetic data showing the Rossing stratigraphy wrap around and trend into Extract's licence area, please visit the following link: http://www.ccnmatthews.com/docs/APPENDIX1.pdf.

To view APPENDIX 2, Figure 2: Rossing South Location Plan, please visit the following link: http://www.ccnmatthews.com/docs/APPENDIX2.pdf.

APPENDIX 3:

TABLE OF NEW RESULTS

Husab Project: Rossing South Drilling Results

Uranium intersections greater than 0.1 kg/t U3O8 over drill hole
intersection widths of not less than 2 metres down hole width:

---------------------------------------------------------------------------
Hole_id Northing Easting Azi_ Dip From To Width Grade Grade
UTM UTM True (deg) (m) (m) (m) kg/t lb/t
WGS84 WGS84 (deg) U3O8 U3O8
33S 33S
---------------------------------------------------------------------------
RBA001 506200 7506000 90 -60 89 129 40 0.240 0.529
---------------------------------------------------------------------------
Including 89 97 8 0.998 2.201
---------------------------------------------------------------------------
Including 111 113 2 0.180 0.398
---------------------------------------------------------------------------
Including 127 129 2 0.249 0.548
---------------------------------------------------------------------------
and 144 150 6 0.115 0.254
---------------------------------------------------------------------------
RBA002 506280 7506000 90 -60 60 160 100 0.265 0.584
---------------------------------------------------------------------------
Including 60 63 3 0.224 0.493
---------------------------------------------------------------------------
Including 67 69 2 0.396 0.873
---------------------------------------------------------------------------
Including 73 80 7 0.280 0.617
---------------------------------------------------------------------------
Including 91 160 69 0.321 0.708
---------------------------------------------------------------------------
which
includes 105 112 7 0.902 1.989
---------------------------------------------------------------------------
and 133 138 5 0.939 2.071
---------------------------------------------------------------------------
RBA003 506360 7506000 90 -60 55 57 2 0.262 0.578
---------------------------------------------------------------------------


Notes:

- Analyses on riffle split RC chips by Genalysis Laboratory Services,
Perth. Uranium assays were carried out by Four Acid Digest/MS

(Method AT/MS).

- Metal values (U) have been converted to oxide values (U3O8) using a
factor of 1.179, and expressed as kg/t U3O8. Note that 100 ppm U3O8 is
equivalent to 0.1 kg/t U3O8, which is 0.01% U3O8.

- Assays expressed as kg/t U3O8 have been converted to lb/ tonne by
multiplying by 2.2046.

- All results are from the Rossing South prospect of the Husab Uranium
project.

- True widths are still to be determined and ongoing drilling is aimed
at determining the geometry of the mineralised zones.

(ABN 61 057 337 952)

Contacts:
Extract Resources Limited
Peter McIntyre
Managing Director
+61 (08) 9367 2111

Extract Resources Limited
Richard Henning
Investor Relations
+61 (08) 9367 2111
Email: rhenning@extractresources.com

Extract Resources Limited
30 Charles Street
P.O. Box 752 South Perth WA, 6951
+61 (08) 9367 2111
+61 (08) 9367 2144 (FAX)
Email: reception@extractresources.com
Website: www.extractresources.com