VDM Van Dieman

RNS Number:9301U
Van Dieman Mines plc
30 November 2005


VAN DIEMAN MINES PLC

                          Purchase of Treatment Plants


Van Dieman Mines Plc ("Van Dieman" or "the Company") is pleased to announce that
it has finalised designs for two primary treatment plants and a tin concentrate
clean-up plant.

There will be a primary treatment plant at each of the Scotia and Endurance mine
sites which will process the tin and sapphire bearing ore. The tin concentrate
clean-up plant located at the Company's Gladstone depot will separate gold from
the crude tin concentrate and produce a refined tin concentrate for shipment to
the Company's contracted smelter in Thailand.  The mine rough sapphire and gold
will be shipped, using secure transport, to the USA for sale to the
manufacturing jewellery industry.

Quotations received from the plant manufacturer have confirmed budget forecast
costs on the basis of a supply, erect and commission contract.

To enable firm orders to be placed for the plants prior to the end of the year
and to prevent delays to the start up programmes for the Scotia and Endurance
mines the Directors consider that it should undertake a Placing of equity
securities at this time. Also the Company is in negotiations with banks to
provide an element of debt funding for the purchase of the plants.

The proposed Placing will be the conditional upon shareholder approval at an
Extraordinary General Meeting to be convened on 22 December, 2005. The Directors
will be recommending the Placing to shareholders to enable the mine start up
schedule to move forward without delay.


30 November, 2005


For more information

Clive Trist, Van Dieman Mines              Tel: +61(0) 2 9264 0433
                                           E-mail: ctrist@vandiemanmines.com

Emma Priestley, Ambrian Partners           Tel: +44(0) 20 7776 6465
                                           E-mail: emma.priestley@ambrian.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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