Latest Zinc Results

• ZED LODE, PDD241: 3 metres at 6.6% zinc, 5.0% lead and 27.8g/t silver; followed by 3 metres at 6.9% zinc, 4.1% lead and 10.0g/t silver
• GABBRO LODE, PDP241: 14 metres at 3.6% zinc, 1.5% lead and 12.8g/t silver
• MAIN LODE, PDP247: 4 metres at 12.4% zinc, 5.0% lead and 59.8g/t silver
• EAST LODE, PDP252: 2 metres at 11.5% zinc, 8.9% lead and 163.0g/t silver

New Lead Discovery

• High grade lead has been discovered in outcrop near Costean 7, which is 3.2 kilometres northwest of Main Lode
• The lead mainly occurs as galena with assay values to 16.6% lead 

Zinc Results

Prairie Downs Metals has received further assay results for drill holes from the current drill program, which will continue until mid-December and recommence in February 2008. Full details for these intersections are detailed below. Results continue to be of a higher grade than the current resource, which is therefore expected to increase in grade as well as tonnes.

Prairie Downs Metals is targeting a resource grade of 14% zinc equivalent for the first two years of an initial proposed production rate of 300,000 tonnes per annum. The high grades in Main and East Lodes are particularly encouraging as they significantly extend the existing high grade area expected to be mined first.

There is a large backlog of samples awaiting assay as a result of laboratory delays and results are expected to be received well into 2008.

Resource Update

The results in the accompanying table will be incorporated in a resource update expected by early December. A final batch of results is expected by next week which will be the cut-off point for incorporation in the update.

It should be noted that there are many drill holes that are known to be mineralised but for which, due to laboratory delays, results will not be available until December or later. These holes will be included in a further resource update planned for the March quarter.

New Lead Discovery - Costean 7

The Costean 7 ("C7") discovery lies 3.2 kilometres west of the Main Lode area. High grade lead was discovered in outcrop last month. The lead appears to mainly occur as massive and crystalline galena and appears bedded with occasional narrow copper-rich bands. Mineralisation is associated with silicified barite over a strike length of 200 metres and an apparent thickness of around 15 metres before it passes under cover.

Assay results have been received for two samples; returning 16.6% lead, 0.4% zinc, 22.2g/t silver for one sample, and 8.6% lead, 0.1% zinc, 16.4g/t silver for the other.

A total of 27 readings have been taken across the outcrop with a portable XRF machine which returned an average value of 5.8% lead with a high value of 24% lead.

While these are exceptional results it must be stressed that they are only surface results and may not be reproduced by drilling at depth. Further, portable XRF results should be taken as an indicative guide only.

The C7 discovery is a high priority drill target and the first exploratory drill program to test this target will commence as soon as practicable.

Mark Hansen
Managing Director

For further information contact:
Elissa Samuel
Investor Relations Manager
esamuel@prairiedownsmetals.com.au

ZED LODE

SIGNIFICANT INTERSECTIONS (Not in Resource)

GABBRO LODE

SIGNIFICANT INTERSECTIONS (Not in Resource)

MAIN LODE

SIGNIFICANT INTERSECTIONS (Not in Resource)

EAST LODE

SIGNIFICANT INTERSECTIONS (Not in Resource)

NOTES

1. Zinc equivalent % = Zinc % + (Lead %*(USD Lead price per tonne/ USD Zinc price per tonne))
2. Zinc price of USD2767/t and lead price of USD3780/t
3. Resource last updated August 2007
4. Results in red not previously released

CURRENT RESOURCE (August 2007)

4.9 million tonnes at a grade of 5.4% zinc, 2.0% lead and 14g/t silver at a nominal lower cut of 1% zinc. This resource contains 269,000 tonnes of zinc metal, 97,000 tonnes of lead and 2.3 million ounces of silver. It includes a subset of: 2.5 million tonnes at a grade of 7.3% zinc, 1.8% lead and 17g/t silver at a lower cut of 4% to 6% zinc. This resource contains 179,000 tonnes of zinc metal, 45,000 tonnes of lead and 1.4 million ounces of silver.

Information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Mark Hansen, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Hansen has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is 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 Hansen consents to the inclusion in this report of the statements based on his information in the form and context in which it appears.