Discovery Metals Limited has announced an agreement of a new joint venture programme with the Japan Oil, Gas and Metals National Corporation (JOGMEC) and BCL Limited (BCL) for the Dikoloti Nickel Project (Dikoloti Project) in north-east Botswana (New JV).

The Dikoloti Project comprises three prospecting licences covering an area of 283km2 surrounding the three nickel deposits of BCL in the Selebi-Phikwe region of north-east Botswana.

An Inferred Mineral Resource of 4.1Mt @ 0.7% Ni, 0.5% Cu and 1.2 g/t PGE’s at a cut-off of 0.5% Ni for 28,700 tonnes of contained nickel has been reported in accordance with the guidelines of the JORC Code 2004. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

In 2009 DML signed a joint venture agreement with JOGMEC. The agreement provided for JOGMEC to earn an interest of up to 60% in the Dikoloti Project by funding exploration of A$3.0M with DML acting as Operator. Subsequently, following further expenditure by JOGMEC, it increased its participating interest in the Dikoloti Project to 72.0% while DML retained 27.9% as of December 2013 (JOGMEC-DML JV).

The new agreement between DML, JOGMEC and BCL represents the next step in progressing the Dikoloti Project towards production. Under the terms of the new agreement:  the JOGMEC-DML JV grants to BCL the exclusive right to acquire a 51.0% interest in the Dikoloti Project (BCL Participating Interest). The BCL Participating Interest will only be achieved if BCL is able to convert the prospecting licences (which make up the Dikoloti Project) into “mining licences” under applicable Botswana law and will be established at the time the mining licences are issued;

if BCL is able to do this by 31 December 2014 or such other agreed date between the parties, during an additional prospecting licence period, then under the New JV, BCL will have earned the BCL participating interest and the participating interests of JOGMEC and the Company in the Dikoloti Project will be reduced to 35.3% for JOGMEC and 13.7% for the Company;

BCL will be the “Operator” of the New JV when the BCL Participating Interest is achieved;

JOGMEC, DML and BCL will thereafter continue to explore, and each party will be responsible to fund its pro rata share of future costs under the New JV.

Discovery Metals Management believes that the New JV underscores the potential value of the Dikoloti Project. The Dikoloti Project was the Company’s first project in Botswana and, whilst the Company’s main focus has been the Boseto Copper Project, the Dikoloti Project remains a very interesting nickel sulphide resource with significant upside potential. BCL is ideally positioned to take the Dikoloti Project into production as they are able to utilize their extensive existing infrastructure and experience with this type of deposit.

Discovery Metals is delighted to work with such highly credentialed joint venture partners as JOGMEC and BCL.

Further information on the Dikoloti Project can be found on the Company’s website www.discoverymetals.com.