· Company's Main Focus Now Towards Exploration Of Project
· Further Exploration Carried Out At Bundarra Copper-Gold Prospect, Queensland
· Regency's Quoted Investments Now £4m Against Group's £2.7m Capitalisation

Regency Mines Plc said Monday that confidentiality agreements have been signed with two major Chinese metal companies interested in the AIM-listed group's large Mambare laterite nickel-cobalt prospect in Papua New Guinea.

In its half yearly report released today, Regency says the focus of the company has changed to exploration of the recently acquired Mambare nickel project. Regency also states the value of its quoted investment portfolio alone, including Red Rock Resources, Greatland Gold, Sunvest, and Aquarian Gold, is now approximately £4m against the group's capitalisation of £2.7m.

At Mambare, in a 158sq km section of the license, Anaconda Nickel in 1999 assessed possible resource potential as 630Mt at 0.78p.c. nickel with a 0.5p.c. cut-off and 200Mt at 1.01p.c. with 0.8p.c. cut-off.

Past auger drilling across the Mambare Plateau indicates a profile of 3-5m of ash; 3-6m of low grade limonite laterite; 3-6m of limonite ore grading 0.9 to 1.1p.c. nickel (+0.1p.c. cobalt); and 4m of saprolite ore grading at least 1.15p.c. nickel.

Regency emphasises that no resource has been established, as yet, with the next step being to work towards a JORC standard resource at inferred or indicated level.

The company plans a ground penetrating radar programme during this Spring followed by limited diamond drilling.

Andrew Bell, Regency chairman comments that the Mambare project differs from others in the area in that it has 110kms of largely metalled road leading to the port which opens the possibility of direct shipping of untreated iron-rich nickel limonite ore from some areas of the property.

"The values encountered in previous work indicate that this may be an economic prospect. The possibility of being able to obtain large revenues from ore export without the delays and expense of a treatment plant is an extremely attractive one, and we are actively pursuing this possibility".

Regency has kept exploration of its other nickel properties to a minimum and the Cat Camp license in Western Australia has been surrendered.

On the copper-gold front at Bundarra, in the Bowen Basin of Queensland, 107m of shallow RAB drilling was completed in October. Best results were a 1.37p.c. copper intersection from 23m and 0.66g/t gold over 1m from 26m. Further exploration, the company believes, should be closer to the granite/hornfels contact. Bundarra still has a number of promising targets.

Regency has taken a small investment in a coal project in Indonesia and holds 12m shares in the restricted stock of Aquarian Gold Corporation which is shortly changing its name to Aquarian Coal Corporation.

Mr. Bell expects the second half to be one of "continued progress".

Group loss for the six months to end December amounted to £383,000 (£184,000) which on the issued capital of 135,989,680 shares gave a loss per share of 0.22p. The group had net current assets of £172,000 at the end of the period.