Ann: Trading Halt , page-5

Conquest lifts stake in North Queensland Metals
Michael Bennet
From: The Australian October 12, 2010

CONQUEST Mining plans to raise up to $35 million to buy 40 per cent of the Pajingo gold mine in Queensland.
The miner entered a trading halt this morning at 50.5 cents, pending an announcement of a �capital raising�.

Separately,its holding in takeover target North Queensland Metals, which holds 60 per cent of Pajingo, moved to 88.28 per cent, a whisker within compulsory acquisition.

It is understood Conquest is seeking $25m to $30m through an institutional placement handled by Southern Cross Equities, and a share-purchase plan to raise an additional $5m.

Both have been priced at 48c, representing a discount of 4.95 per cent.

In another related development, a placement to Baker Steel Capital Managers raising $10m announced in September is also to be finalised.

The funds will be used to buy Heemskirk Consolidated�s 40 per cent stake in Pajingo for $37m, increase production at the mine and complete an optimisation study for its Mt Carlton gold project in Queensland, which is due by the end of 2010.

Heemskirk had also bid for NQM, but aborted its offer and sold the asset to Conquest.