July 2008 Australasian Resources and Shougang Appoint BNP Paribas as Advisory Bank • Advisory bank appointed to review Bankable Feasibility Study for Balmoral South Iron Ore Project in Western Australia, and • Appointment of advisory bank is key step towards facilitating Finance Offer for development of Project. Australian iron ore company Australasian Resources Ltd (ASX: ARH) has, together with project partner Shougang, appointed BNP Paribas (“BNPP”) as its Advisory Bank. BNPP, appointed by the company’s wholly owned subsidiary International Minerals Pty Ltd (“IM”), will review the Bankable Feasibility Study for the Balmoral South Iron Ore Project. This review will be in the context of the likely requirements of Chinese policy banks that are expected to be the primary source of project funding. Timefull Investments (Shougang Concord) 6.33% As a leading finance institution, BNPP has extensive experience in the structuring and financing of mining projects and has a close working relationship with key Chinese policy banks, including China EXIM bank, who has previously shown strong interest in the Project. Mount Sun Investments Ltd (APAC Resources) 4.74% Australian Minerals (Hong Kong) Holding Ltd 3.49% BNPP has impressive credentials in mining finance and was named the “Number One Mining Mandated Lead Arranger” by Infrastructure Journal in 2007. * escrowed until April 2009 Balmoral Project Highlights • Right to mine 1 billion tonnes of magnetite iron ore. • Strategic alliance with China’s fourth largest steelmaker, Shougang Corporation. • Shougang has committed A$56 million to ARH and has the option to: inject a further A$42 million; fully fund the project through an interest free debt facility; and purchase all iron ore products from the Balmoral South Project. Media contact PPR (WA) Mr David Tasker Tel:+61 8 9388 0944 The decision to appoint BNPP was made following an extensive review of a number of proposals from leading banks with extensive experience in the structuring and financing of mining projects. IM and Shougang are continuing to work in a collaborative manner towards the goal of obtaining a Finance Offer. Under the Susan Palmer Deposit Project Agreement, Shougang has exclusive rights to deliver a Finance Offer to IM which would provide the necessary funding to implement the Project. IM will also host seven representatives from Beijing Shougang International Engineering Technology Co. Ltd (BSIET) for a week in early August as a key step towards obtaining a Finance Offer. Andrew Caruso
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