australian bauxite limited (abx)

ann out ....

23 September 2009
Company Announcement Office
Australian Securities Exchange Limited
Proposed Bauxite IPO – Australian Bauxite Limited
Australian Bauxite Limited (ABx) is a wholly owned subsidiary of Hudson Resources Limited (Hudson).
Hudson will transfer, sell or assign all its bauxite interests (13 granted tenements; 1 application offered and 3 applications pending) to its wholly owned subsidiary ABx upon satisfaction of the following terms and
conditions:

• Hudson Shareholder Approval
1. In the event that ASX forms the view that listing rule 11.4 applies to the transaction that Hudson
Shareholders approve the transaction.

• Convertible Note
2. ABx must either at its option:
(a) pay Hudson the sum of $2.4 million (plus accrued interest) within 36 months; or

(b) issue $2.4 million (plus accrued interest) worth of shares in ABx to Hudson on the basis of
an issue price of $0.30 per share (8,000,000 shares).
The Convertible Note will carry an interest rate equal to 6% per annum payable quarterly in arrears.

• IPO
3. That ABx raises $4 million through a public offering of 20 million shares at $0.20 per share;

• Priority Offer
4. That all Hudson shareholders holding at least a Marketable Parcel of Hudson shares at the Record
Date (yet to be set) will be eligible to apply for shares in a Priority Offer, whereby they will be
guaranteed an allotment of 10,000 shares in ABx (upon payment of $2,000) (any further
allocation will be at the discretion of the Directors);

• ASX Listing
5. That ABx is approved to be listed by the ASX.
Upon completion of the IPO, Hudson will hold 71% of ABx.
The target date for listing on the ASX is 14 December 2009, though this date may be subject to factors
outside of the control of ABx. Also the spin-out and listing of ABx may be subject to Hudson shareholder and
other regulatory approvals.
Hudson directors have assembled a strong team to lead ABx: