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Baobab Resources [AIM: BAO] - SOUTH ZONE DRILL RESULTS: SECOND BLOCK 1 CROSS SECTION RESULTS


SOUTH ZONE DRILL RESULTS: SECOND BLOCK 1 CROSS SECTION RESULTS

1st MARCH 2011

Baobab Resources plc (�Baobab� or the �Company�), the iron ore, base and precious metals explorer with a portfolio of mineral projects in Mozambique, is pleased to present an update on the exploration activities currently underway at the Tete iron/vanadium/titanium project.

Highlights:

� Analytical results have been returned from a second three hole RC (reverse circulation) drilling cross section in Block 1, the southernmost portion of the South Zone prospect.

� The cross section is located 100m north of the section announced on 22 February 2011.

A broad, 140m wide, body of heavily mineralised magnetite is being delineated.

(Refer to Tables 1 & 2 below for details).

� Mineralised intercepts reported best concentrate grades of:

TRC0034 � two significant intercepts, totaling 28m, including:
15m @ 62.2% Fe, 0.64% V2O5 and 38.2% mass recovery from 28m

TRC0035 � one significant intercept of:
90m @ 59.4% Fe, 0.60% V2O5 and 37.8% mass recovery from 44m

TRC0036 � two significant intercepts, totaling 42m, including:
20m @ 60.0% Fe, 0.69% V2O5 and 23.1% mass recovery from 121m and
22m @ 56.7% Fe, 0.49% V2O5 and 67.3% mass recovery from 145m

� Current drilling in Block 1 continues to delineate substantial mineralisation to the north.

Mr Ben James, Baobab�s Managing Director, said: �Once again South Zone is delivering beyond our expectations.

Drilling has delineated broad, coherent packages of mineralisation that respond well under our routine Davis Tube Recovery (DTR) analysis to generate a c.60% Fe concentrate at good rates of mass recovery.

�The 2011 drilling programme is gaining momentum and we expect to start seeing the next round of analytical results coming through shortly.

The airborne geophysical contractors have commenced a high resolution survey of the Tenge/Ruoni area that should be wrapped up early next week.

The Monte Muande Exploration Target is also on track for an announcement in the coming two to three weeks.�

A COPY OF THIS ANNOUNCEMENT AND CROSS SECTION IS AVAILABLE FOR DOWNLOAD FROM THE COMPANY�S WEBSITE www.baobabresources.com

For Further Information please contact:

Baobab Resources plc
Ben James: Managing Director
Tel: +61 (0)8 9430 7151

Baobab Resources plc
Jeremy Dowler: Chairman
Tel: +44 (0)1372 450529

Strand Hanson
James Harris / Angela Peace
Tel: +44 (0)20 7409 3494


Northland Capital Partners
Charles Vaughan / Gavin Burnell
Tel: +44 (0)20 7492 4763

Fortbridge Consulting
Matt Beale
Tel: +44 (0)7966 389 196