Genesis Minerals Limited 1 ABN: 72 124 772 041

ASX Announcement 1 July 2008

FURTHER DRILLING SUCCCESS AT MERCEDITAS Genesis Minerals Limited (ASX: GMD; “Genesis”) is pleased to announce that it has received analytical results confirming the intersection of further significant copper mineralisation at its Merceditas Project in Chile.

Genesis recently completed a 36 hole drilling program at the Merceditas Project. Results from the first 25 holes, announced previously, include:

MERC002 12m @ 1.13 % copper from 4m 22m @ 0.68 % copper from 46m MERC006 34m @ 1.12 % copper from 42m MERC007 10m @ 0.72 % copper from 26m MERC012 14m @ 0.99% copper from 46m MERC017 26m @ 0.81 % copper from 0m MERC018 28m @ 1.07 % copper from 0m MERC019 6m @ 1.70 % copper from 12m

Analytical results for the final 11 holes have now been received. Significant intersections include:

MERC026 20m @ 0.59 % copper from 0m MERC027 24m @ 0.70 % copper from 8m MERC028 12m @ 0.42 % copper from 2m MERC029 6m @ 0.77 % copper from 10m MERC033 22m @ 0.64 % copper from 0m MERC035 64m @ 0.61% copper from 36m MERC036 14m @ 0.46% copper from 12m

Managing Director Michael Fowler commented, “These results from the Merceditas Project are highly encouraging and continue to demonstrate the considerable potential of the Paula Prospect and excitingly the one hole that was drilled into the Lucy Prospect has returned substantial mineralisation.”

Paula Prospect

Drilling at the Pupy Zone has intersected significant copper mineralisation over 400 metres of strike. The potential of the Pupy Zone has been confirmed by the intersection of 24m @ 0.7% copper from 8 metres in MERC027, drilled 150 metres southwest of a historic drill hole which returned 62m @ 0.58% copper from 8 metres.

Genesis Minerals Limited 2 ABN: 72 124 772 041

At the Copacho Zone MERC033, drilled into the western limit of the zone, returned 22m @ 0.64% copper from 0m. Mineralisation remains open at depth and along strike to the east.

Lucy Prospect

MERC035, drilled on the eastern limit of the main drilled zone at the Lucy Prospect, returned 64m @ 0.61% copper from 36 metres to the of end of hole. Mineralisation is open to the northeast from MERC035 along the interpreted trend of oxide copper mineralisation. Significantly copper grades appear to be increasing towards the northeast. Mineralisation is hosted within a porphyry body and is associated with a stockwork of chrysocolla veinlets.

Genesis completed a 36 hole RC drilling program at the Merceditas Project, for 2,950 metres, during May. This comprised mostly wide spaced drilling at the south eastern corner of the Paula Prospect. The average hole depth was 80 metres. Results have now been received for the entire program.

Outcropping copper mineralisation at the Paula Prospect has been identified over 3,500 metres of strike, the majority of which remains untested by drilling.

Planning is well underway to extend the zone of drill defined oxide copper mineralisation at the Paula Prospect and to further test the extent of mineralisation at the Lucy Prospect. An RC rig has been sourced to complete 5,000 metres of drilling in August. It is anticipated that a JORC compliant resource will be calculated following completion of this drilling program.

Genesis Minerals Limited 3 ABN: 72 124 772 041

The Merceditas Project is located in northern Chile’s Iron-Oxide-Copper-Gold ("IOCG") belt which is one of the most prospective IOCG provinces in the world. It is located approximately 1,000km north of Santiago, the capital of Chile, in the Atacama Desert and is easily accessible by road in an area that is serviced by very good infrastructure.

Michael Fowler Managing Director Further Information Contact - Michael Fowler +56 9818 1858 or mfowler@genesisminerals.com.au

Genesis Minerals Limited 4 ABN: 72 124 772 041

Merceditas Project - Total Copper Intercepts MERC026 to 036 Hole

Number Northing Easting mRL UTM

Az. Dip Hole

Depth (m) Intercept – Total Cu%

MERC026 7,052,531 387,890 1,613 0.33 -60 80 20m @ 0.59 % Cu from 0m 4m @ 0.41 % Cu from 26m 2m @ 0.25 % Cu from 66m 2m @ 0.28 % Cu from 78m

MERC027 7,053,044 387,604 1,584 179.43 -60 80 24m @ 0.70 % Cu from 8m 2m @ 0.30 % Cu from 48m 2m @ 0.27 % Cu from 62m 8m @ 0.35 % Cu from 66m

MERC028 7,053,017 387,627 1,580 180.65 -60 60 12m @ 0.42 % Cu from 2m 2m @ 0.37 % Cu from 18m 2m @ 0.29 % Cu from 22m 6m @ 0.34 % Cu from 40m

MERC029 7,052,949 387,445 1,533 180.2 -60 80 6m @ 0.77 % Cu from 10m 2m @ 0.38 % Cu from 36m

MERC030 7,052,972 387,405 1,535 180.4º -60º 80 4m @ 0.30 % Cu from 8m MERC031 7,052,939 387,145 1,529 359.7º -60º 80 18m @ 0.46%Cu from 0m MERC032 7,053,759 387,531 1,485 180.3º -60º 80 4m @ 0.45 % Cu from 62m MERC033 7,053,785 387,629 1,480 180.52 -60 80 22m @ 0.64 % Cu from 0m

4m @ 0.30 % Cu from 26m MERC034 7,053,809 387,850 1,455 179.63 -60º 80 20m @ 0.30% Cu from 0m MERC035 7,050,017 388,050 1,412 359.69 -60 100 64m @ 0.61% Cu from 36m

includes

22m @ 0.82 % Cu, 0.13 ppm Au from 36m

includes 36m @ 0.55 % Cu, 0.10 ppm Au from 64m

MERC036 7,053,090 386,889 1,566 359.42 -60º 80.00 14m @ 0.46%Cu from 12m

Genesis Minerals Limited 5 ABN: 72 124 772 041

Notes : • Final assay results from reverse circulation drilling 2m riffle splits. • Lower cut of 0.2% Cu. • One quarter sent to the ALS Chemex laboratory in La Serena. • All samples were analysed for Total Copper – Four Acid Digest and AAS analysis. • Reference standards, duplicate and blank samples were routinely submitted and were within

acceptable limits. • All drill hole collar positions have been surveyed - PSAD56 Zone 19S. Information in this announcement was compiled by Michael Fowler, Genesis Minerals Limited Managing Director, who is a Member of The Australasian Institute of Mining and Metallurgy. Michael Fowler has sufficient experience that 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 JORC Code. Michael Fowler consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.