Ann: Share Placement , page-5

Placement at 3.5c - let's hope the recipients hang on rather than dump into the market

Austpac Share Placement Raises $1,788,425
Austpac is pleased to announce that the Company has completed a private placement of 51,097,856 fully paid ordinary shares at 3.5 cents each to raise $1,788,425. These shares were placed with professional investors. The funds will be used for the continuing development of the Newcastle Iron Recovery Plant. The EARS section of the ERMS SR Demonstration Plant is being refurbished to commercially recycle waste from the steel industry and generate a profit for the Company. The EARS plant has a capacity to process up to 13,000 tpa of spent pickle liquor and up to 25,000 tpa of mill scale or other iron oxide wastes from steel mills. The plant will commence operations following the completion of the Kronos transaction.