07/30/2010 | Press release

June Quarterly Activities Report

ASX ANNOUNCEMENT
30 July 2010


                                 Quarterly Activities Report
                          For the Period Ending 30 June 2010

Syrah Resources (ASX:SYR) today released its June 2010 quarterly activities report.


Highlights


· Total of 23 applications for Exploration Licences in Arabian Shield now in
     progress.

· Joint venture partner Zurich Resources Pty Ltd conducts geochemical and
     geophysical surveys at Lyndhurst, north Flinders Ranges.


Saudi Arabia

After prolonged and unsuccessful negotiations with Mashoura Company, a Saudi
business consultant, Syrah decided not to complete the proposed joint venture
partnership arrangements into which both parties entered a Heads of Agreement in
December 2009. During completion of the joint venture agreement documentation,
the commercial terms sought by Mashoura shifted to such a degree from the terms
agreed to in the HOA that Syrah decided to not proceed further. As a consequence of
the termination of these discussions, Syrah retains 100% ownership of the
Exploration Licence Applications it has made in Saudi Arabia.

Syrah has continued project generation activities and at the end of the quarter has 23
active Exploration Licence applications being processed at the Deputy Ministry of
Mineral Resources. The areas in which Syrah currently has active ELA's is shown in
Figure 1.

The Company actively monitors the progress of these applications and will provide
more information regarding the mineral prospects covered by the applications once
final confirmation of tenure is provided by the Deputy Ministry of Mineral Resources.

The Company is actively evaluating prospective areas for exploration and new
business development opportunities both within and external to Saudi Arabia.

Syrah has substantially progressed the incorporation of a fully owned Saudi
subsidiary company called `Syrah Resources Saudi Arabia LLC', the entity in which
the Company's continued business development in the Kingdom will occur.




Level 9 - 356 Collins Street, Melbourne Victoria 3000 Australia
t/ (03) 9670 7264 f/ (03) 9670 4479 e/ info@syrahresources.com.au www.syrahresources.com.au abn 77 125 242 284

Figure 1 Regions of Arabian Shield in which Syrah has made Exploration Licence Applications




Level 9 - 356 Collins Street, Melbourne Victoria 3000 Australia
t/ (03) 9670 7264 f/ (03) 9670 4479 e/ info@syrahresources.com.au www.syrahresources.com.au abn 77 125 242 284

Exploration ­ Australian Projects

Lyndhurst

Ground geophysical and geochemical sampling programs were undertaken by Zurich
Resources Pty Ltd on an area of approximately 3km x 5km covering a complex of
copper mineralised mafic and felsic intrusives and strong copper mineralisation in
soils over the White Lead prospect. Previous work in this area has focused on near-
surface oxide and sulphide copper potential. The current programs are investigating
potential for deeper zones of sulphide mineralisation associated with the intrusive
complex.

Approximately 200 line km of detailed ground magnetics and 550 soil analyses have
been completed and await processing.

3D IP/Resistivity targeting the most prospective intrusive related zone is ongoing and
should be completed during August.

Finance

The cash position at 30 June 2010 was $1.77M.

Syrah completed payment of a Service Fee of US$200,000 to Mashoura Company in
July 2010. This Service Fee was a component of the Heads of Agreement signed
with Mashoura in December 2010 and represents compensation for consulting
advice and critical assistance provided by Mashoura towards the portfolio of
Exploration Licence Applications made by Syrah in Saudi Arabia.



Alistair Campbell
Managing Director
Syrah Resources Ltd


Syrah Resources - Registered Office:
Level 9, 356 Collins Street
Melbourne Victoria 3000

Syrah Resources - Directors & Management:
Mr Tom Eadie ­ Chairman
Mr Alistair Campbell ­ Managing Director
Mr Terry Lees ­ Exploration Director
Mr David Ogg ­ Company Secretary




Level 9 - 356 Collins Street, Melbourne Victoria 3000 Australia
t/ (03) 9670 7264 f/ (03) 9670 4479 e/ info@syrahresources.com.au www.syrahresources.com.au abn 77 125 242 284