AGO 0.00% 4.5¢ atlas iron limited

capital raising

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    The directors Atlas Iron Limited [ASX Code: AGO] (“Atlas” or “the Company”) advise that
    the Company has resolved to raise up to approximately $85 million through the issue of up to
    59.5 million ordinary shares at an issue price of $1.43 per share. Shares will be issued
    predominately to international and domestic institutional clients of Hartleys Limited, with
    strong participation from Atlas’ existing largest shareholders.
    Funds raised pursuant to the placement will allow Atlas to undertake the development of the
    Company’s 100% owned Pardoo Direct Shipping Iron Ore Project, with a portion of the
    funds being applied towards site capital and pre-payment of port facilities. Funds raised will
    further be applied towards the pre-feasibility study of Atlas’ 100% owned 853 Mt Pardoo
    Magnetite Project and ongoing exploration of the Company’s various iron ore projects, where
    drill rigs are currently operating and will be for the remainder of this year and into 2008.
    Atlas’ Managing Director, David Flanagan stated “The overwhelming support for the
    placement by our major shareholders and a number of large international and domestic
    institutional investors, validates the confidence Atlas has in its Pilbara Direct Shipping and
    Magnetite Iron Ore projects. The placement was 100% oversubscribed and Atlas remains on
    track to be in production of Direct Shipping Iron Ore by September/October 2008, while at
    the same time progressing towards development of its world class 853 Mt Magnetite Iron Ore
    Project.”
    The placement in Atlas will be made in two tranches. The allotment of 18 million Tranche 1
    shares, which is not subject to shareholder approval and falls within the Company’s 15%
    placement capacity under ASX Listing Rule 7.1, will be issued with 10 days of this
    announcement. The allotment of 41.5 million Tranche 2 shares will be issued subject to
    shareholder approval at a meeting of shareholders scheduled for 6 September 2007.
 
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Currently unlisted public company.

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