ASX ANNOUNCEMENT

10th March 2010

FURTHER HIGH GRADE COPPER AT PILGRIM IN NW QUEENSLAND

HIGHLIGHTS

Recent rock chip sampling at Pilgrim has returned values of up to 36.25% Copper and 2.2 g/t Gold from outcrop and subcrop. This sampling extends the Copper zone that returned up to 30.7% Copper and 11.3 g/t Gold from previous float and subcrop sampling

Pilgrim is located about 150km SE of Mount Isa and 25km north of the Phosphate Hill Mine and is a joint venture with Deep Yellow Ltd

Rock chip and soil sampling has now defined a NNW trending Copper zone that is over 900 metres long and is open to the north and south. This anomaly is over Proterozoic rocks of the Corella Formation which hosts a number of economic deposits such as Tick Hill (Gold) and Trekelano (Copper / Gold)

There is also a strong Copper soil anomaly over Iron rich breccias to the north – these are close to the Cambrian / Proterozoic fault contact and may represent Copper mineralisation at depth

The Copper Gold mineralisation is associated with the contacts of regional magnetic anomalies and is located within the highly prospective N-S Pilgrim Fault Corridor. Elevated Silver, Molybdenum and Tellurium assays, support a polymetallic IOCG (Iron Oxide Copper Gold) model for Pilgrim

No previous exploration work appears to have been carried out on the Copper mineralisation discovered by Krucible, nor are there any historic workings

Further work; including surface sampling, mapping and ground geophysics is planned for this exciting prospect in the next 4-6 weeks. This will be followed by drill testing.

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The directors of Krucible Metals Ltd are pleased to announce that further very encouraging Copper / Gold results have been received from the Pilgrim EPM 15072.

Previous results from exploration at Pilgrim have been reported in Krucible ASX Announcements on the 10th December 2009 and 25th January 2010.

This tenement is located about 150km SE of Mount Isa and 25km north of the Phosphate Hill Mine (see FIGURES 1 & 2) and is subject to a Joint Venture with Deep Yellow Ltd (DYL) whereby Krucible can earn 80% equity by expenditure of $400,000 over 4 years. Krucible has the right to 100% ownership by issue of one million KRB shares.

The Pilgrim Prospect area is also located about 5km SE of the historic high grade Gold Tick Hill Mine and 70km NW of the operating Copper/Gold Mine at Osborne (Barrick Australia Ltd) (See FIGURES 1 & 3). This very prospective zone is mainly underlain by altered calc-silicate breccias and granitoids of the Proterozoic Corella Formation which hosts the Tick Hill gold deposit as well as the Trekelano Mine (Copper, Gold – 21km to NNW) and the Kalman deposit (Copper, Molybdenum – 67km to the North).

During the course of a semi-regional lag sampling program at Pilgrim in November 2009 visible Copper was observed by Krucible geologists in float samples. These assayed up to;

30.7% Copper, 10.25 g/t Gold, 29.9 g/t Silver, 15.1 g/t Tellurium

In December 2009 follow up rock chip sampling of boulder float and sub-outcrop of Proterozoic basement returned up to;

23.3% Copper, 11.3 g/t Gold, 31.4 g/t Silver and 17.6 g/t Tellurium

Further rock chip sampling in February 2010 of mainly outcrop and sub outcrop returned assays up to;

36.2% Copper, 2.20 g/t Gold, 25.1 g/t Silver & 14.5 g/t Tellurium

A full list of the anomalous rock chip results to date is shown on TABLE 1.

The field program carried out in February 2010 (between storms) comprised soil and rock chip sampling and geological mapping (see FIGURES 3-5).

This recent work has been successful in delineating a NNW zone of intermittent high grade IOCG mineralisation over a strike length of about 900 metres – this is open to the north and south and has never been drill tested. The Copper / Gold mineralisation is associated with magnetite / hematite and “red rock” alteration within the Corella Formation and is also associated with magnetic contact zones (see FIGURE 3) outlined from broad regional aeromagnetic images. Detailed ground magnetic and conductivity surveys are planned to better delineate the mineralisation both at surface and at depth.

It should be pointed out that the breccia / vein mineralisation exposed to date is only of local extent (generally in mainly soil covered ground) but the high grades encountered over +900

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metres as well as the geological setting auger well for the possible discovery of significant high grade sulphide related mineralisation.

Mineralised Creek Float - 33.9% Copper (sample No. 60868, 391749E 7602929N)

Outcrop found after following up creek float Mineralised Outcrop - 36.2% Copper (sample No. 60866, 391737E 7603015N)

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TABLE 1

ANOMALOUS ROCK CHIP SAMPLES / PILGRIM J.V. (DEEP YELLOW LTD) - EPM 15072

Sample Number

AMG Co-Ordinates All Results in ppm unless shown as %

Comments AGD66 East North Gold Silver Copper Molybdenum

60816 391931 7602375 0.353 29.9 30.70% 19.80 float (near source?) Ironstone / Quartz

Breccia - visible Malachite (heavy)

60818 391815 7602610 10.25 3.28 14.30% 0.28% float (near source?) Hematite / Ironstone

rock - visible Malachite

60819 391628 7602417 0.083 2.50 1.62% - float in creek (from SSW) sheared mafic

rock - Malachite staining

60848 391925 7602356 2.72 10.05 8.06% - sub outcrop - sheared hornblende Granite +

Chalcocite & Malachite

60849 391926 7602393 3.34 31.4 25.30% 23.1 sub outcrop - Hematite Calc-silicate

Breccia + Chalcocite & Malachite

60850 391950 7602374 11.3 14.35 11.30% 17.25 sub outcrop - Hematite Calc-silicate Breccia + Chalcocite & Malachite

60852 391963 7602360 3.02 16.6 23.0% 23.7 boulder float on slope Hematite Calc-silicate

Breccia + Chalcocite & Malachite

60862 391730 7603018 O.602 - 1.69% - float, biotite/ mica Schist with anomalous rare earths (0.152% Cerium & 0.127% Lanthanum)

60863 391730 7603022 0.305 1.66 3.56% - outcrop (local) NNW trending altered

mafic rock

60864 391644 7602400 0.22 1.63 1.44% - subcrop - ditto

60865 391771 7602740 1.86 3.34 8.23% - outcrop, red rock mafic rock (Malachite

& Azurite)

60866 391737 7603015 1.45 25.1 36.20% 43.2 outcrop (local) NE trending Breccia + Chalcocite

(anomalous 98ppm Uranium)

60868 391749 7602929 2.20 23.3 33.90% - creek float, altered Breccia + Malachite &

& chalcocite

60874 391359 7602657 - - 0.52% - creek float, Ironstone Breccia & sheared

Dolerite

60885 392526 7604701 - - 0.12% 36.4 outcrop, Chert Breccia / Manganese

(Cambrian?)

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There is also a strong Copper soil anomaly to the north at Humphries Hill (see FIGURES 3 & 4) that is associated with Iron rich breccias and a strong magnetic anomaly. The soil anomaly is over younger Cambrian sediments close to the faulted contact with Proterozoic basement. It is interpreted that these breccias could be hosting re-circulating Copper rich fluids emanating from a mineralised body at depth, associated with a magnetic intrusive body.

Field work to date at Pilgrim has been hampered by the current wet season. However more work (comprising soil sampling, geological mapping and geophysical surveys) is planned for March / April 2010. It is hoped to commence drill testing in May / June 2010 after Native Title clearances have been obtained.

Historical open source information indicates excellent potential for high grade Phosphate rock within the Pilgrim EPM 15072 about 3kms from the Copper Gold discovery. This will be assessed as part of Krucible’s intended Phosphate mine feasibility study.

Attached: Figures 1-5

Tony Alston Further Information: Mr. Tony Alston Ph: (07) 4772 5880 Managing Director Krucible Metals Ltd.

WEBSITE: www.kruciblemetals.com.au

Information of a scientific or technical nature in this report was prepared under the supervision of A.J. Tony Alston, CEO and Chief Geologist of Krucible, who is a member of the Australian Institute Geoscientists and the Australian Institute of Mining and Metallurgy. Mr Alston has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a “competent person” as defined in the 2004 edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Alston has reviewed and approved Krucible’s quality assurance program, quality control measures, the geology, samples collection and testing procedures the basis for information contained in this report. For further information regarding the Pilgrim Copper Gold discovery please refer to reports and releases to the Australian Stock Exchange over the last 18 months together with the Company’s website at www.kruciblemetals.com.au

This report contains forward-looking statements. These forward-looking statements reflect management’s current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. A number of factors could cause actual results, or expectations to differ materially from the results expressed or implied in the forward looking statements.

Mr Alston consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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Draft ASX 090310100310 Figs RedFIGURE 1 V1BH.2010.11 V1 Fig 2BH.2010.30 50000 V1 Fig 3BH.2010.34 V1 Fig 4BH.2010.21 V1 Fig 5