iron ore update, page-2

VALE SECURES IRON ORE
RIGHTS FOR A FURTHER YEAR
The Company is pleased to advise that Vale S.A. (?Vale?) has secured
the ?rights? to Avanco?s iron ore project for a further twelve months.
 Compliant with the Iron Ore Agreement1, Vale has secured
their rights into the second year of the Option by having
advanced Avanco US$600,0002.
 Having already completed the maiden drill programme the
current extension facilitates Vale?s further exploration which
includes detailed field recognisance.
 Vale has prepared a maiden resource. The Company has
acknowledged that the outcome exceeds the minimum required
for Vale to exercise their right to acquire the project.3
CORPORATE
The Company maintains dialogue with Vale in regard to their on-going
exploration activities and Avanco?s supporting regulatory responsibilities.
New iron ore opportunities associated with Avanco?s Caraj?s tenure