NSL HealthMEDIA RELEASE11 July 2008HEALTH GROUP TO BE RE-BADGED...

NSL Health
MEDIA RELEASE
11 July 2008
HEALTH GROUP TO BE RE-BADGED AS IRON ORE PLAYER
Key points:
NSL Health Limited (ASX:NSL) has entered into a conditional merger
agreement with Iron Ore Hill Limited.
As part of the merger, a major capital raising is planned.
The merger will create a group with a market capitalisation in excess of
$125 million and a structure that has no debt with cash in excess of $25
million.
Iron Ore Hill Limited has secured rights to an Indian Magnetite project that
has an Exploration Potential of 500Mt to 770Mt grading 25-35% Fe, with an
upside target of 1.2 billion metric tonnes.
The directors of NSL Health Limited (NSL or Company, ASX:NSL) are pleased to
announce the Company has entered into a conditional merger implementation
agreement for the merger of the Company and Iron Ore Hill Limited (IOH) under
which NSL will make offers to acquire all of the issued shares in IOH (Merger) and
adopt the Iron Ore Hill Limited name.
IOH was formed when the operations of Austind Iron Ore Pty Ltd (AIO) were
restructured. Before or at completion of the Merger, IOH will hold all of the
interests previously owned by AIO in relation to the Kerala Iron Ore Project (which
Iron Ore Hills Project nce, the
term "IOH" will be used in this announcement to denote either IOH or AIO.
NSL interest in IOH was first flagged last October when it said it would spend a
minimum of $300,000 and up to $400,000 to earn a 25% interest in the Iron Ore Hills
Project.
The change in focus of NSL from surgery and technological services to the
exploration/mining of iron ore will involve a significant change in the nature and
-comply with
Chapters 1 and 2 of the ASX Listing Rules if the proposal is approved by NSL
shareholders.
After completion of the Merger, expected to be finalised in October, NSL will
Iron Ore Hill Limited
of the new activities of the Company.
The iron ore market is buoyant at present and driven in large by appetite for
steel in China and India. Demand for steel has increased significantly in recent
years and is largely driven by a construction and infrastructure boom resulting
from economic prosperity in these countries. As a result of this demand, we have
seen recent price increases won by the major Australian producers and
significant interest being shown by the Chinese wanting to take up equity in
emerging Western Australian pr man Mr Peter Wall said today.
Iron Ore Hills Project in Kerala offers potential to fast track a
major iron ore project to development. The Indian market is growing and if the
country is able to source some of its steel-making requirements domestically, it
puts us in a very good position.
Historical analysis has confirmed that the magnetite ore from the project area
can be upgraded through beneficiation to a concentrate containing over 65%+
Fe with a recovery of about 85% Fe
said.
Results from the data review and exploration work undertaken by IOH to date
have been very encouraging and suggest that a major new magnetite
mineralised (+/- hematite and limonite) target of over 500Mt to 770Mt grading
25% to 35% Fe1 occurs at the Iron Ore Hills Project with higher grade Fe zones
being found in, but not exclusive to, magnetite rich gneiss units containing
Quartz, Grunerite and Diopside (MQGD) host rocks.
Ends
A copy of the announcement follows.
For further information:
Faldi Ismail
Ph: (08) 9486 2333
Allan Francis
Professional Public Relations
Ph: 08 6380 0002; Mobile: 0430 038 338