two month low, page-6

This is copy of the reply I got from Maria when asked about loan reapyments by Vallenor. Hope it clarifies things:-

SCM Vallenar Iron Company (formerly SC Minera Santa Barbara) has an
intercompany loan with Admiralty Resources whose current balance is
approximately US$50m.

The loan agreement and the floating charge agreement were signed on 18
February 2005. However, Admiralty did not provide the first tranche of
the loan till 24 March 2005.

Amounts due under the loan agreement mature 48 months after the first
loaned amount. This is 24 March 2009.

Admiralty will follow the standard procedure in these cases and will
demand payment to SCM Vallenar Iron Company. Should they not have fund
available, Admiralty will notify of its intention to enforce the fixed
and floating charge, which Wyndham, as a shareholder, may oppose to.

As per the Japonesa Master Agreement that governs the shareholder
relationship, any dispute between shareholders shall be resolved by
arbitration process in the Chamber of Commerce of Santiago under the
laws of England.

In the meantime, the Company continues to work closely with the legal
teams in Australia and Chile to ensure that the debt owed is served
promptly.


Kind regards,

Maria Vazquez
Investor Relations
Admiralty Resources NL
Level 14, 200 Queen Street
Melbourne VIC 3000
P: +61 3 9642 8787
F: +61 3 8677 6949
E: [email protected]
W: www.ady.com.au