Ann: MDL Work Programme Approved, page-2

MDL Work Programme Approved

The Board of Queensland Bauxite (ASX:QBL or “the Company”) is pleased to announce that, after receiving the approval last week from the Queensland Government Department of Environment and Heritage Protection (DEHP) to approve the amendment to our Environmental Authority (EA) for the South Johnstone Bauxite Project at Camp Creek in Queensland, to allow for the work programme intended under the Mineral Development License (MDL), the Department of Natural Resources and Mines (DNRM) has now formally approved the work programme intended under the MDL.

The DNRM have now formally confirmed to the Company that following this important decision, no further material information is now required from the company and that they are committed to finalising this application within the next 30 days.

As previously advised, in parallel with the development work to be undertaken under the now expected MDL, the Company is actively working towards Mining Lease (ML) applications to allow for mining of all the identified bauxite ore resources at Camp Creek.

The bauxite mineralisation at South Johnstone being close to surface and right off the main highway adjacent to port, close to the Asian markets, means that the Company’s capital and operational costs are estimated to be of the lowest cost bauxite projects. As previously reported in the Company’s released scoping study, capital expenditure is expected to be only approximately $5 million, and operating expenditure is expected to be only AUD$20.87 per tonne FOB Mourilyan Harbour. For the full summary of the scoping study please see the announcement previously released by the Company which can be accessed using the following link:

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01588588

The operational results from the working of the MDL will be a key part of the overall strategy to develop an export operation in a staged development of South Johnstone that allows for long term mining and export on a prospect by prospect basis at low cost within the entire project area.

The Board would like to thank the dedicated geological team, consultants and contractors of QBL, headed by our chief Geoscientist Dr Robert Coenraads, who have worked so diligently to achieve this result.