project update announcement out, page-5

An Australian Resources Group
ABN 53 100 552 118
23 August 2007
Australian Securities Exchange Limited
Company Announcements
Level 10, 20 Bond Street
SYDNEY NSW 2000
Dear Sir / Madam.
PRODUCTION UPDATE - FRANCES CREEK RAMPS UP
Attached is a media release on the build-up of Territory Resources’ iron ore production from
Frances Creek.
Yours faithfully
Peter Ruttledge
Company Secretary
MEDIA RELEASE 23 AUGUST 2007
PRODUCTION UPDATE - FRANCES CREEK RAMPS UP
Australian resources group Territory Resources (ASX:TTY) is successfully ramping up production and
railing at its Frances Creek project, ahead of its first shipment of iron ore next month.
Territory has stockpiled more than 25,000 tonnes of high grade iron ore (lump over 63% Fe) at the
Port of Darwin, in preparation for its expected first shipment of 70,000 tonnes to China in September.
Territory Chairman Michael Kiernan said the historic project was progressing on schedule, with
infrastructure and logistics in place for the first shipment.
“Activity at Frances Creek has really stepped up, with 100 staff and contractors on site, all mining
equipment operational and the rate of production increasing by the day,” Mr Kiernan said.
“We are now railing ore every day from Frances Creek to Darwin. We are capitalising on the excellent
access to infrastructure, with the Adelaide to Darwin rail line running within 15 kilometres from the
project providing immediate access to Darwin, Australia’s closest port to China.
“Our Port infrastructure is operational with a growing stockpile of high grade ore, and commissioning
of the port conveyor system now well advanced.
“The Darwin Port Corporation (DPC) has invested about $23 million for the provision of bulk material
handling facilities and commissioning of a new ship loader. Territory has spent about $9.5 million in
establishing storage and loading infrastructure for its iron ore exports,” he said.
Marketing and shipping of the ore will be coordinated by Hong Kong based Noble Group Limited, who
are market leaders in global supply chain management. Earlier this month, Territory secured a life-of
mine off-take agreement with Noble, for all iron ore produced at its Frances Creek Project.
“With global shipping and trading networks, and direct relationships in China, Noble are perfect
partners for Territory on this project, and will allow Territory shareholders to capitalise on our natural
advantages for the Chinese market,” Mr Kiernan said.
Territory has in place a three year freight contract with Freightlink worth more than $30 million.
FreightLink, Genesee Wyoming and CFCL Australia are investing approximately $14 million in rolling
stock, engines and rail infrastructure for the Frances Creek Project.
For further information, please contact:
Michael Kiernan Warrick Hazeldine
Chairman Purple Communications
Tel: +61 (0) 8 9324 7000 Tel: +61 (0) 8 9485 1254
Mob: 0418 904 165 Mob: 0417 944 616
About Territory Resources
Territory Resources (ASX:TTY), an independent Australian resources group, has a clear strategy to develop into
a diversified carbon steel materials producer.
The Company is developing the 100% owned 1.5 mtpa Frances Creek haematite iron ore project located north of
the regional town of Pine Creek on the Stuart Highway, 190 km south of Darwin. Territory has a production target
of 3 mtpa within two years.
A significant re-rating of the company has occurred in the last quarter as production commenced at the Frances
Creek operation in June 2007 and Territory is on track for its first shipment of ore in the September 2007 Quarter.
Marketing of Territory’s ore will be undertaken by the Hong Kong based Noble Group Limited via a life-of-mine
marketing agreement. Crawley Resources Limited (Noble Group Limited 70% and local mining identity Michael
Kiernan 30%) owns 30.0% of Territory. Visit: www.territoryresources.com.au