rights issue

FULLY UNDERWRITTEN RENOUNCEABLE RIGHTS ISSUE
Haddington Resources Limited is pleased to announce a renounceable rights issue (Rights Issue) to raise approximately $5 million before costs. The Rights Issue is fully underwritten by Patersons Securities Limited and offers two new shares and two options for every five shares held at an application price of 23 cents per share.
The options will be issued for no consideration and will have an exercise price of 35 cents and a term of three years. The Company will apply for quotation of the new shares and new options on ASX.
The purpose of the Rights Issue is to raise funds to be used in conjunction with existing funds and funds from cash flow to accelerate exploration and development
of the Company’s existing projects and, subject to completion of the proposed acquisition of Minvest International Corporation (Minvest)(ASX announcement 17 April 2007), advance exploration and development of the Minvest portfolio of projects.
The Company plans to apply funds raised under the Rights Issue to:
o move ahead with the pre-feasibility study including further drilling, metallurgical testing and marketing studies on the Balline garnet deposit to establish its viability ahead of a development decision;
o accelerate exploration of uranium targets at Shoobridge, Finniss Range and Lake
Barlee;
o accelerate exploration of iron targets at Shoobridge;
o working capital to fund other ongoing operational and exploration activities; and
o meet the costs of the Rights Issue.
In addition, subject to completion of the proposed acquisition of Minvest, the Company also plans to apply funds raised under the Rights Issue to:
o accelerate assessment and exploration the Muara Uya Coal Project in Indonesia;
o exploration of the Minvest uranium, coal, lignite and gold prospects in Madagascar; and
o grow the Minvest services business through modernisation and the acquisition of additional equipment to enable new contracts to be won.
HADDINGTON RESOURCES LIMITED 7th June 2007
The use of the proceeds of the Rights Issue will be set out in more detail in a prospectus relating to the Rights Issue (Prospectus).
The Prospectus is expected to be lodged early next week and will be available after lodgement on the ASX website www.asx.com.au and also on the Company’s
website www.haddington.com.au.
Shareholders who are eligible to participate in the Rights Issue and who wish to apply for new shares and new options will need to complete and return the
personalised entitlement and acceptance form accompanying the copy of the Prospectus that is sent to eligible shareholders.
ON BEHALF OF THE BOARD OF DIRECTORS OF
HADDINGTON RESOURCES LIMITED.
Colin McCavana
Managing Director
Telephone +61 8 9488 5100