Joint Venture Agreement

RNS Number : 1089C

Regency Mines PLC

06 November 2009

REGENCY MINES PLC

Dated: 6 November 2009

Regency Mines plc ("Regency" or the "Company"), the mining exploration and mineral investment company with interests in copper and nickel in Western Australia, Queensland, and Papua New Guinea, announces the signing of a Joint Venture Agreement with Direct Nickel Pty Ltd ("DNi"), pursuant to the Memorandum of Understanding beteeen the parties signed on 19 August 2009 and extended on 30 September 2009 ("JV").

Under the terms of the JV, the parties have agreed to co-operate on a 50/50 basis in the piloting and application of DNi's advanced nickel/cobalt leaching technology at Regency's Mambare lateritic nickel deposit in Papua New Guinea. Regency will agree to sell a 100% interest in its wholly owned subsidiary Canopus No 83 Limited, and in any other interests it may come to hold in the vicinity of the Mambare deposit, to a wholly owned subsidiary of DNi ("JVCo"), for a consideration consisting of redeemable convertible shares which will convert, on achievement of the objective of the JV, into a 50% interest in JVCo. The objective of the JV is to achieve directly or indirectly a listing of JVCo on a stock market to fund ongoing resource delineation and the piloting of the DNi Process. Should this not be achieved, either party will have the right (but not the obligation) to terminate the JV and the Company's redeemable convertible shares would then be convertible into a 100% interest in Canopus No 83 Limited. Achievement of the objective of the JV may be conditional on Regency shareholder approval in accordance with Rule 15 of the AIM Rules for Companies.

JVCo will hold a license for production of up to 60,000 tpa nickel in concentrate using the DNi technology, and the right to a second license for an approved second project of up to 30,000 tpa of nickel in concentrate.

Regency will enter into a sale and purchase agreement in agreed form with JVCo, completion of which will be subject to compliance with any legal or regulatory requirements in the United Kingdom or Papua New Guinea; and subsequently will agree with DNi an operating agreement under which they will work together in the management of JVCo company, with primary responsibility for operations resting with the DNi team.

Further announcements will be made in due course.

Enquiries:

Andrew Bell	0207 402 4580 or 07766 474849	Regency Mines plc	Chairman
Peter Trevelyan-Clark / Ben Jeynes	020 7444 0800	Blomfield Corporate Finance Ltd	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker
Ron Marshman / John Greenhalgh	020 7011 9411	Lothbury Financial Limited	Public Relations