more good news, page-2

re: not quiet right mama NEWS RELEASE
9 January 2007
ABN 46 008 942 809
Level 4, 5 Mill St Phone: (+61 8) 9322 2288
Perth WA 6000 Fax: (+61 8) 9324 2164
AUSTRALASIAN RESOURCES’ VISION A STEP CLOSER
Australasian Resources Ltd (ASX Code: ARH) is excited by the news that Citic Pacific (Citic) has locked in a long-term financing agreement, selected a construction contractor and is moving full steam ahead with the development of its US$2.5 billion iron ore project in the Pilbara.
In April 2006, Citic signed a deal with Mineralogy Pty Ltd for the initial right to mine one billion tonnes of magnetite iron ore with options for an additional 5 billion tonnes from the ground adjacent to Australasian’s Balmoral South Project.
Under its agreement with Mineralogy, Citic will develop a port at Cape Preston and other related infrastructure facilities which Australasian will have access to on a capital and operating cost basis.
In an article in The West Australian newspaper on 6 January 2007, Mr Henry Fan, Citic’s Managing Director, is reported as having said that Citic has been working flat out at Cape Preston since the deal had been struck, with an intensive drilling program under way to confirm reserves ahead of a decision to exercise its rights to a second billion tonnes.
Mr Fan is also quoted as saying “The financing is for 100% of the project cost on a 25 year basis from a mainland (China) bank”.
Professor Palmer welcomed the Citic comments and stated “it is just the beginning, there will be many more iron ore projects developed on Mineralogy’s leases in the future”. Professor Palmer also said “all future projects and the people of Western Australia will benefit from the immediate development of the Citic Project”.
After receiving shareholder approval for the acquisition of International Minerals and the right to mine one billion tonnes from the Balmoral South Project, Mr Darren Hedley, Managing Director of Australasian Resources said “this news puts another tick against Australasian’s project and confirms the Balmoral area as a world class iron ore region”.
Mr Hedley also said “considering the Project’s favourable location near the coast, the Balmoral magnetite’s amenability to produce a very high grade concentrate and the ability to share infrastructure this project offers significant competitive advantages over many other magnetite projects.”
Any enquiries can be directed to Darren Hedley on +61 8 9322 2288.