The following press coverage is not crash hot for any company to...

The following press coverage is not crash hot for any company to have to deal with.
ANM/ANMNA being sold down in volume this morning. ANMNA 3.5mil down 17% to 14c.
Will the project go ahead - who would know ?
It could very well blow up in the face of the Queensland Premier.
If ANM can't find interim financial support will the Qld. Treasury have to step in ??
What will all the small DES holders do when this hit the news bulletin later and the papers in the morning ??
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MARKET TALK/AU-EQ: Stanwell Doubts Could Hurt Leighton 25/05/03 09:45:00+
[Contact Us: Sydney 61-2-8235-2950; [email protected]]

0944 [Dow Jones] Australian Magnesium's (ANM) A$1 billion-plus Stanwell
project in Queensland might be scuttled without new equity partner. While not so
downbeat, ANM says will "need to review the basis for proceeding with Stanwell"
if partner not found, adds June "is a critical month for AMC" with interim
financial support needed. Stanwell also accounts for substantial portion of
Leighton's (LEI) work in hand. Doubts could put pressure on LEI stock as well.
(IGP)
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Company Announcement

Stanwell Development & Funding Update
AUSTRALIAN MAGNESIUM CORPORATION LIMITED 2003-05-26 ASX-SIGNAL-G

HOMEX - Brisbane

+++++++++++++++++++++++++
Australian Magnesium Corporation Limited (AMC) is in discussions with
a number of potential new corporate partners to progress development
of the Stanwell Magnesium Project.

Chief Executive Mr Rod Sharp said today continued development was
dependent on involving a new strategic partner.

"AMC and its principal shareholder, Newmont Mining Corporation, are
of a shared view the currently anticipated level of additional
funding and balance sheet support for Stanwell requires the
introduction of a new partner," Mr Sharp said.

"Newmont is working closely with AMC to expedite the introduction of
a new partner, and AMC has retained Standard Bank London as its
corporate advisor," he said.

"At this stage these discussions with potential corporate partners
are preliminary in nature and therefore uncertain as to their final
outcome. AMC's aim is to progress discussions through June and move
towards a more formal proposal thereafter.

"During June AMC will need to secure reasonable assurance of interim
financial support from its key stakeholders to carry it and the
project through to the finalisation of any agreement with a new
partner, which could take a number of months. Should a new partner
not be secured, or interim financial support not become available in
the timeframe required, AMC would need to review the basis for
proceeding with Stanwell.

"Expenditures have been reduced in recent months and a number of
activities suspended, but it is important AMC quickly resolve its
funding and support issues to maintain the existing project schedule
and meet its customer commitments.

"Maintaining project schedule, finalising engineering and continuing
with selected construction work, in particular the cast house, are
key to realising value for AMC and a new entrant.

"Fluor is progressing its independent estimate of the project's
capital cost and a review of the schedule. The Fluor estimate is
expected to be available in mid-June.

"June is a critical month for AMC involving discussions with
potential partners, securing interim financial support, receipt of
the Fluor review and progressing project engineering and
construction.

"We continue to believe that significant value has been created in
the project and are focusing our efforts on securing the means by
which this value can be enhanced and realized with an appropriate
partner," Mr Sharp said.

Photos of recent site construction activities are available on AMC's
website www.austmg.com

Investor Relations & Media Comment

Joel Forwood - MANAGER - Investor Relations
Simon Jemison - GENERAL MANAGER - Public Affairs
Tel: +61 7 3837 3400
Fax: +61 7 3837 3423