update on partner selection process

10 July 2009
ASX RELEASE
Update on Partner Selection Process
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Discussions with potential Australian and international partners are continuing.
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Gresham Advisory Partners appointed as corporate advisers.
Polaris Metals NL is pleased to provide the following update on its discussions with potential partners for the development of the Yilgarn Iron Ore Project (YIOP).
As noted in the Company’s report on activities for the quarter ended 31 March 2009, Polaris is focussing on the development of Stage 1 of the YIOP with an initial production of 3.5 – 4.5 Mtpa from the Carina and Chamaeleon deposits. Discussions with a range of potential Australian and international development partners reflect support for this strategy and further interest in the accelerated development of other projects in the Yilgarn, including Mayfield, Bungalbin East, J4 and J5. These discussions are continuing.
The process has led to a number of different development and funding models being proposed and as a result, Polaris has appointed leading independent Australian investment bank Gresham Advisory Partners Limited to assist the Company in considering its strategic alternatives.
It should be stressed that discussions remain at an early stage and there can be no assurance that a binding proposal will emerge. In the meantime, Polaris remains focused on evaluating and developing iron ore resources on its 5,000 km2 of tenements held in the Yilgarn and Pilbara iron ore regions of WA.