🕐29.10.08 - 03:57 Uhr

Raytec News Release




FROM THE BOARD OF DIRECTORS

Dear Shareholders and Investors,

You will be aware that the world capital and commodity markets
have recently changed for the worse.

It is the Company"s view that
such times offer both difficulties and opportunities.

Management
has taken prudent steps to reduce its cash outlays whilst still
ensuring that adequate exploration progresses on its projects in
order to increase their value and maintain statutory expenditure
requirements to protect them from forfeiture.
The underlying demand for commodities, whilst softening in the
short term, will continue to grow and therefore the downturn is an
opportunity to acquire good quality projects.

Therefore we are
increasing our efforts to evaluate other advanced projects that
could offer the potential of near term production.
The Company intends to gain as much leverage as possible in this
process from its relationships with larger companies.
Impact will continue to focus on its core commodities of uranium
and nickel, which offer exposure to future energy demands and
growth in the emerging economies, as well as gold which, in
Australian dollars, continues to perform well.

The uranium spot
price is also largely unaffected in Australian dollars; rather it is
enhanced.
Despite recent events Impact"s shareholders have been very
supportive and much of the decrease in share price has been the
result of small trades and minimal volume.

As a result the
Company, which has a good cash balance of $2.17 M and an
ongoing funding relationship with Impala Platinum Limited, still
remains very leveraged to success either through direct
exploration or by acquisition.
We thank you for your on‐ going support.
Please contact us if you require further information.
Dr Michael G Jones

Managing Director
Market Cap
(29 October 2008)
A$3,636,000 ($0.05p/s)
Issued Capital
72,735,002
Directors
Peter Unsworth
Chairman
Michael Jones
Managing Director
Rodney Fripp
Executive Director
Mark Pitts
Company Secretary
tel
fax
email
SEPTEMBER 2008 QUARTERLY REPORT
SUMMARY

Nickel
• Strategic Alliance with Impala Platinum Limited to explore for
nickel and platinum group metals in southern Africa.

Impala to fund
US$800,000 over a two year period;
• Yarrabubba Nickel JV Project (WA, Impact 20%): Major regional
MMI soil geochemistry programme of 4,500 samples completed.

Final
assays awaited; and
• Junction South Nickel and Gold Project (WA, Impact 40%): Ground
EM survey completed.

Results awaited.
Uranium
• Quinns Lake Project (WA, Impact 100%): Election of new state
Liberal‐National Government supportive of uranium mining in
Western Australia.

Strategy being formulated to progress the
exploration and development of the Nowthanna uranium deposit;
• Yarrabubba JV Project (WA, Impact 20%): Major regional MMI soil
geochemistry programme completed.

Assays awaited; and
• Botswana (Africa, Impact 100%): Three prime targets identified in
surface calcrete and lake sediments.

Field work and data collation on‐
going.
Gold
• Drummond Basin Projects (QLD): Discussions continuing to Joint
Venture the projects.
Corporate and Business Development
• Project Generation and Evaluation work continuing in Australia and
Africa;
• Assessment of corporate priorities in progress in view of changed
market circumstances; and
• Good cash position of $2.17 million, plus Impala Alliance income.

1.

Alliance with Impala Platinum Limited to Explore for and Develop
Nickel‐Platinum Deposits in Southern Africa
During the Quarter the company entered into a Strategic Alliance to explore for and develop
deposits containing nickel and platinum group metals (PGM"s) with Impala Platinum
Limited, the World"s second largest platinum producer.
The Alliance, which recently commenced, will operate for a minimum period of two years
and Impala Platinum will fund project generation work by Impact up to US$400,000 per year
and in return will have the first right to earn equity in any projects identified.
Projects in which Impala Platinum elects to earn an interest will require a minimum
expenditure by Impala of US$1 million before withdrawal, and a further US$1 million
expenditure to earn 50%.

Any projects generated by the Alliance which Impala Platinum
does not elect to progress with can be retained 100% by Impact.

Impala Platinum has major interests in and operates six platinum mines together with a
wholly‐owned smelting and refining service near Johannesburg.

Annual attributable
production is more than 1 million ounces of platinum, 0.8 million ounces of other PGM"s
including palladium, rhodium, ruthenium, iridium and gold, and 7,000 t of nickel with by‐
product copper and cobalt.
The Impala Platinum ‐ Impact Minerals Nickel‐PGE Alliance will operate in a number of
countries including Botswana, Madagascar, Malawi, Mozambique, Namibia, and Zambia.
The Alliance will be managed by Mr John Blaine who was recently appointed as Chief
Operating Officer for Impact"s exploration and business development in Africa.
Mr Blaine was Managing Director of Falconbridge Group Companies in Africa, and has led
teams responsible for important discoveries of gold and diamonds, and projects with
potential for nickel, copper, zinc and platinum group metals.

More information about Mr
Blaine is contained in Impact"s announcement of 17 December 2007.
Impala Platinum"s recognition of Impact"s technical skills in both project generation and
exploration is a rewarding endorsement of, and a key part of, Impact"s strategy in Africa.
2.

Quinns Lake (Impact 100%) and Yarrabubba (Impact 20%)
Uranium and Nickel Projects, Western Australia
The Quinns Lake (E51/1075) and Yarrabubba projects (E51/1072‐1073, E20/563‐567) are
located 70 km south east of Meekatharra in Western Australia and comprise adjacent
tenement holdings with different ownership structures and with common exploration
potential for deposits of calcrete‐hosted uranium oxide and Sudbury‐style World Class
nickel‐copper‐PGM deposits.

The Nowthanna calcrete‐hosted uranium deposit occurs in part
in both the Quinns Lake Project and in the Yarrabubba Project which is in Joint Venture with
CITIC Nickel Australia Pty Ltd, part of the CITIC Group (60%), as well as a syndicate of
investors (20%).

Impact Minerals owns approximately 40% of the Inferred Resource of uranium oxide
resource (JORC 2004) within the Nowthanna deposit.

At a cut‐off grade of 0.2 kg/t
(200 ppm) uranium oxide Impact"s 40% share of the deposit is about 3.92 Mt at an average
grade of 0.45 kg/t (450 ppm), for a contained 1,800 t or 4 million pounds of uranium oxide.
The Quinns Lake‐Yarrabubba area has most of the geological characteristics of the World
Class Sudbury nickel mining camp in Canada.

An extremely large sub‐circular magnetic low
in regional magnetic data and outcrops with distinctive geological structures are interpreted
to be the signature of a structure caused by a major meteorite impact.

It is generally accepted
that such an impact occurred at Sudbury and that this gave rise to the many large nickel‐
copper‐PGM deposits in that area.
Uranium Exploration
In the recent state election in Western Australia a new Liberal‐National coalition
Government was elected and this has resulted in a positive attitude towards uranium mining
although legislation regarding the mining and transport of radioactive minerals has yet to be
enacted.

Impact welcomes this development for the uranium industry in Western Australia and will
now vigorously pursue the options for the exploration and possible development of the
Nowthanna uranium deposit near Meekatharra.

This is particularly relevant in the light of
the high grade drill results for uranium oxide announced by the Company earlier this year.
Uranium and Nickel Exploration on the Yarrabubba Project (Impact 20%)
MMI Soil Geochemistry Survey
Previous exploration by the YB Joint Venture has identified modest nickel‐in‐soil responses
over one strong magnetic anomaly and over one weak electromagnetic conductor, as well as
two other modest nickel‐in‐soil responses.
During the Quarter a major MMI soil sampling programme of about 4,200 samples was
completed.

This covered about 80% of the licence areas of E51/1073 and E20/563 to 567.

The
MMI technique permits testing of both the uranium and nickel potential of the ground as
well as other commodity metals that could be present in the large hydrothermal alteration
system identified in magnetic data and reported previously.
Final assays are still pending because of delays at the Laboratory.

Results and interpretation
of the survey will be completed during the next Quarter.
2.

Botswana Uranium Project (Impact 100%)
The Botswana Uranium Project comprises approximately 21,000 sq km of licences that cover
about 350 km of the strike extensions of rocks that host uranium deposits and prospects near
the town of Serule, where ACAP Resources Ltd has the Letlhakane uranium project
containing three deposits hosted by near surface calcrete and by Karoo Group sedimentary
rocks.

ACAP have reported a combined inferred resource of 98 million lbs of U3O8 at an
average grade of 158 ppm at a cut‐off grade of 100 ppm.

The recently released scoping study
for the project suggests that ACAP will progress the project further.
Initial interpretation of
Government airborne
radiometric data that covers
about three quarters of the
Prospecting Licences, located
in eastern Botswana,
identified about 20 areas
with elevated surface
uranium responses and
other targets.
During the Quarter
fieldwork identified 10
priority targets, three of
whch are high priority with
widespread surface uranium
anomalism in calcretes and
sandstones.
To the north of Serule the
field work has identified
widespread modestly
elevated uranium
anomalism in Karoo
sedimentary rocks and in the
sediments of the Sua Pan,
supporting the interpretation
of the airborne radiometric
data.

There is potential here
for deposits similar to
Mokobaesi and Nowthanna.
Impact"s licences are variably prospective for three types of uranium deposits:

• deposits such as at Letlhakane, hosted by Karoo sedimentary rocks and which host
uranium deposits in many places in southern Africa;
• uranium hosted by calcrete in palaeochannels, a style of mineralisation well known
in Australia and Namibia.

In Botswana the palaeochannels form part of the
Kalahari Group sediments that are extensive within the Impact licences; and
• areas of salt lakes which, in Australia, are known to host uranium deposits,
including the Nowthanna deposit near Meekatharra that is 40% owned by Impact.

Data compilation and interpretation work is on‐going with a view to further field work
including soil geochemistry and trenching in the next Quarter.
On 19 August shareholders approved the purchase of the 15% of the Botswana project it did
not own for a consideration of 2 million ordinary shares, to be voluntarily held in escrow for
12 months, to be granted to Mr Blaine.
3.

Junction South Nickel and Gold Project, Western Australia
(M15/655‐656 and E15/148; Impact 40%)
The Junction South Project is located 45 km south east of the major gold and nickel mining
camp of Kambalda in Western Australia.

The tenements (M15/655‐656, E15/148) have been in
Joint Venture with and managed by Liontown Resources Limited to explore for nickel and
gold.

During the Quarter Liontown sold it"s 60% interest in the Junction South Project to
Panoramic Resources Limited (formerly Sally Malay Mining Ltd).
The ultramafic rocks in the Project Area are interpreted to be structural repetitions of the
rock units that host the nickel deposits at the nearby Schmitz and Lanfranchi Mines (owned
by Panoramic Resources Ltd and Brilliant Mines Ltd) about 15 km to the north west and are
along strike from the nickel resource discovered at Stockwell recently announced by Mincor
Limited.
Towards the end of the Quarter a ground EM survey covering about 10 sq km was
completed in the northern part of the project area to test ultramafic rocks adjacent to a major
structure about 5 km north of the significant off‐hole conductor identified in drilling
completed earlier this year.
The results of the survey are awaited and will be reported in the next Quarter.
4.

Gold Exploration in Queensland (Impact 100%)
Impact owns 100% of eight exploration licences in the Drummond Basin called Drummond
East (EPMs 14927‐929), Drummond West (EPMs 14932‐934) and Clermont (EPMs 14116‐117).
The Drummond Basin is one of Australia"s most prospective areas for large and World Class
epithermal vein and stockwork style gold deposits and for bulk‐tonnage disseminated gold
and gold‐copper deposits.

It contains the 4 million ounce Vera‐Nancy‐Pajingo mining centre
and dormant mines at Twin Hills, Yandan, Mt.

Coolon and Wirralie.
Zamia Resources Ltd continues to report significant results from the Anthony porphyry‐
hosted molybdenum deposit located about 50 km south of and along strike from the
Drummond West Project.

This discovery is the first of such a mineralisation style in the
Drummond Basin and is a significant development in that it supports Impact"s long‐standing
view that that the Drummond Basin is very prospective for mineralised porphyry systems.
Major target generation exercises have been completed over the project areas.

All previous
exploration results were considered, together with conceptual models for epithermal gold
and porphyry‐style copper‐gold‐molybdenum mineralisation.
More than 60 targets have been identified, of which 18 are ranked as high priority and 25 are
for porphyry systems.
Discussions with a number of parties, with a view to a Joint Venture on the projects, are in
progress.
5.

Corporate and Business Development
The company has increased its efforts in evaluating numerous advanced projects prospective
for its core commodity group of nickel, uranium and gold.
Dr Michael G Jones
Managing Director
The review of exploration activities and results contained in this report is based on information
compiled by Dr Mike Jones, a Member of the Australian Institute of Geoscientists.

He is a director of
the company and a full time employee of Impact Minerals Limited.

He has sufficient experience which
is relevant to the style of mineralisation and types of deposits under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of
the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (the
JORC Code).

Mike Jones has consented to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 1
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96.

Origin: Appendix 8.

Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
IMPACT MINERALS LIMITED
ABN Quarter ended ("current quarter")
52 119 062 261 30 SEPT 2008
Consolidated statement of cash flows
Cash flows related to operating activities
Current quarter
$A"000
Year to date
(3 months)
$A"000
1.1 Receipts from product sales and related debtors
- -
1.2 Payments for (a) exploration and
evaluation
(b) development
(c) production
(d) administration
(233)
-
-
(140)
(233)
-
-
(140)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature
received 10 10
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Other (provide details if material) - -
Net Operating Cash Flows (363) (363)
Cash flows related to investing activities
1.8 Payment for purchases of: (a) prospects
(b) equity
investments
(c) other fixed
assets
(d) environmental
bonds
-
-
-
-
-
-
-
-
-
-
1.9 Proceeds from sale of: (a) prospects
(b) equity
investments
(c) other fixed
assets
-
-
-
-
-
-
1.10 Loans to other entities - -
1.11 Loans repaid from other entities - -
1.12 Other (provide details if material) - -
Net investing cash flows - -
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
Appendix 5B Page 2 30/9/2001
1.13 Total operating and investing cash flows
(brought forward) (363) (363)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc.

- -
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings (2) (2)
1.18 Dividends paid - -
1.19 Other - Share Issue costs (5) (5)
Net financing cash flows (7) (7)
Net increase (decrease) in cash held
(370) (370)
1.20 Cash at beginning of quarter/year to date 2,537 2,537
1.21 Exchange rate adjustments to item 1.20 - -
1.22 Cash at end of quarter 2,167 2,167
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
Current quarter
$A"000
1.23
Aggregate amount of payments to the parties included in item 1.2
94
1.24
Aggregate amount of loans to the parties included in item 1.10
-
1.25
Explanation necessary for an understanding of the transactions
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated
assets and liabilities but did not involve cash flows
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the
reporting entity has an interest
NIL
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 3
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available
$A"000
Amount used
$A"000
3.1 Loan facilities
N/A
3.2 Credit standby arrangements
N/A
Estimated cash outflows for next quarter
$A"000
4.1 Exploration and evaluation
250
4.2 Development
-
Total
250
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as
shown in the consolidated statement of cash flows) to
the related items in the accounts is as follows.
Current quarter
$A"000
Previous quarter
$A"000
5.1 Cash on hand and at bank 84 27
5.2 Deposits at call 100 1,515
5.3 Bank overdraft - -
5.4 Other (Commercial Bills) 1,983 995
Total: cash at end of quarter (item 1.22)
2,168
2,537
Changes in interests in mining tenements
Tenement
reference
Nature of interest
(note (2))
Interest at
beginning of
quarter
Interest at
end of
quarter
6.1 Interests in mining
tenements relinquished,
reduced or lapsed
NIL
6.2 Interests in mining
tenements acquired or
increased
NIL
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
Appendix 5B Page 4 30/9/2001
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number quoted Issue price per
security (see note
3) (cents)
Amount paid up per
security (see note 3)
(cents)
7.1 Preference
+securities
(description)
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns of
capital, buy-backs,
redemptions
7.3 +Ordinary
securities
74,735,002 51,562,502
7.4 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns of
capital, buy-backs
2,000,000
-
2,000,000
-
NIL
NIL
7.5 +Convertible debt
securities
(description)
NIL
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through securities
matured, converted
7.7 Options (Issued
to Employees and
Contractors)
200,000
1,000,000
3,100,000
150,000
1,000,000
2,600,000
-
-
-
-
-
-
25 cents
20 cents
25 cents
15 cents
25 cents
30 cents
31/12/2010
31/07/2011
31/07/2011
31/07/2012
31/07/2012
31/07/2012
7.8 Issued during
quarter
1,000,000
3,100,000
150,000
1,000,000
2,600,000
-
-
-
-
-
20 cents
25 cents
15 cents
25 cents
30 cents
31/07/2011
31/07/2011
31/07/2012
31/07/2012
31/07/2012
7.9 Exercised during
quarter
7.10 Expired during
quarter
7.11 Debentures
(totals only)
NIL
7.12 Unsecured notes
(totals only)
NIL
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
Compliance statement
1 This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act or other standards acceptable
to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
29 October 2008
Sign here: ............................................................

Date: ............................
(Company secretary)
Mark Pitts
Print name: .........................................
Notes
1 The quarterly report provides a basis for informing the market how the entity"s
activities have been financed for the past quarter and the effect on its cash position.
An entity wanting to disclose additional information is encouraged to do so, in a note
or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in
mining tenements acquired, exercised or lapsed during the reporting period.

If the
entity is involved in a joint venture agreement and there are conditions precedent
which will change its percentage interest in a mining tenement, it should disclose the
change of percentage interest and conditions precedent in the list required for items
6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in
items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive
Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International
Accounting Standards for foreign entities.

If the standards used do not address a topic,
the Australian standard on that topic (if any) must be complied with.
== == == == ==
30/9/2001 Appendix 5B Page 5

 




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