A new resource drilling program has commenced to add to existing uranium resources at Toro Energy Limited's ("Toro", ASX code "TOE") Napperby Project in Central Australia.

The campaign is the first this year by Toro at Napperby and, along with previous drilling, is expected to complete at least 70% of the target mineralised area by the end of the program in five months time.

The drill program is aimed to add to the Project's initial Inferred Resource of 670 contained tonnes (1.47 million lbs) of U3O8 at Napperby, 150 kilometres northwest of Alice Springs.

The new drilling follows recently announced assay results from the 2007 drilling at Napperby between September and December last year, and which highlighted the increased integrity and cohesiveness of the mineralisation, prompting Toro to increase the effort of the resource drill out.

Key points of the new campaign and associated studies include:

• Two drill rigs (Sonic and Air Core) and 12 person crew on site;
• Base line environmental studies have commenced in support of he planned Scoping Study this year;
• Initial metallurgical tests and the upcoming resource update will rovide important data for the Scoping Study;
• Initial regional exploration work over the extended Napperby enements is planned.
• Toro holds an option to acquire 100% of the project from Deep Yellow imited (ASX code "DYL") on certain commercial terms (see ASX elease dated 13/12/06 for details).

Previously announced drilling results using a 200ppm U3O8 cut-off have provided a weighted average grade of 469 ppm (0.05%) U3O8 of all assays received.

Toro has targeted an updated resource estimate from the 2007 drilling by the end of the current June quarter.