placement .007 430mil

COMPANY ANNOUNCEMENT
PLACEMENT AND PROPOSED 1 FOR 4 ENTITLEMENT ISSUE
Thursday, 1 June 06 : Yamarna Goldfields Limited (ASX : YAM) announces that it has reached agreement with Chifley Investor Group Pty Ltd (Chifley) for the private placement of up to 430 million new shares in the capital of the Company at an issue price of 0.7 cents per share together with 1 free attaching option for every share subscribed, exercisable on or before 31 July 2009 at an exercise price of 0.9 cents per share. The placement, which is subject to shareholder approval in accordance with Chapter 7 of the Australian Stock Exchange Listing Rules is to be undertaken on an all reasonable endeavours basis. If fully subscribed, the placement will raise approximately $3.1 million before allowing for costs associated with the issue.
The Company also wishes to announce that it intends to undertake a 1 for 4 non-renounceable entitlement issue to all shareholders on the basis of 1 new share and 1 free attaching option exercisable at 0.9 cents on or before 31 July 2009 for every 4 shares held as at the Record Date at a subscription price of 0.7 cents per share. This issue is to be underwritten by Chifley and will raise approximately $1.42 million before allowing for costs associated with the issue.
The placement and entitlement issue are expected to raise up to $4.52 million before allowing for costs. Funds raised from the issue will be predominantly applied towards new exploration activities proposed for the company’s Talga Peak Gold Project, potential new corporate opportunities and for working capital purposes.
For And On Behalf Of The Board
Bryan Frost
Chairman