Malachite Resources announces Resource Upgrad at Conrad Silver Project, NSW December 16, 2008

Malachite Resources NL (ASX: MAR) has announced today that a new mineral resource estimate has been prepared for the Conrad Silver Project, located 25km south of Inverell in northern NSW. The new estimate is based on the results of all drilling to date, amounting to over 25,000 metres of drilling in 107 drill holes.

HIGHLIGHTS

• Conrad mineral resource upgraded to 19.2Moz of silver equivalent
• 50% of this is silver, the balance being the associated tin, copper, lead and zinc expressed as silver equivalent
• High grade resource increased by 150% to 458,000t
• Deposit remains open along strike and at depth
• New scoping study planned for early 2009

For further information please visit the Company’s website: www.malachite.com.au
or contact: Garry Lowder, Managing Director at (02) 9411 6033
or by email at: glowder@malachite.com.au

ABOUT MALACHITE – Malachite Resources is a Sydney-based resources company that listed on the ASX in November 2002 and is an active explorer for silver, tin, gold, copper and associated base metals in eastern Australia. At the beginning of October, 2008 the Company had approximately $2.5 million in cash and no debt. The Company’s key assets are:

The CONRAD SILVER PROJECT, which is located 25km south of Inverell, in northern NSW, where the Company is evaluating the scope to reopen the old Conrad Silver Mine near Inverell. Conrad has had two previous periods of production but has not operated for over 50 years. Drilling at Conrad by Malachite has intersected narrow high grade, massive sulphide, silver-rich base metal veins, like those mined in the past, and wide zones of lower grade, disseminated and stockwork veined, polymetallic mineralisation. At current prices, silver represents 50% of total recoverable metal value in the Conrad ore and tin accounts for about 25% of the value. An interim mineral resource containing 8.8Moz of silver, or 17.7Moz of silver equivalent, has been delineated at Conrad and drilling to add to and upgrade that resource was completed at the end of September, 2008.

Malachite also has excellent exposure to tin, through its ELSMORE Project, located 20km east of Inverell, where the Company is considering the possible development of a paleo-alluvial tin deposit, known as the Karaula Lead, at the Newstead Prospect. The Karaula Lead appears to have the potential to support a small surface mining operation, which could be developed with low capital and operating costs and generate useful cash flow for the Company. Work is now underway to better quantify the Karaula Lead deposit and assess its economics.

The VOLGA COPPER PROJECT, located in northwest Queensland, east and northeast of Mt Isa, where the Company is exploring for copper-gold at the Mt Lidster and Volga Elderberry properties. Previous drilling at Mt Lidster and Volga has produced some encouraging high grade copper intersections.

The TOOLOOM GOLD PROJECT also in northeast NSW. Tooloom is a forgotten goldfield rediscovered by Malachite where numerous prospects have been identified, including a significant green fields discovery called Phoenix. The company is systematically exploring Phoenix and the other prospects at Tooloom, which are intrusion-related and have major ore potential.

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