ann today, page-7

23 June 2008
Company Announcements Office
Australian Securities Exchange
Balmoral South Iron Ore Project reaches critical milestone with issue of Feasibility Notice
Australian iron ore company, Australasian Resources Ltd (“Australasian”), (ASX:ARH) is pleased to announce that International Minerals Pty Ltd (IM), a 100%-owned subsidiary of Australasian, has issued a Feasibility Notice to Shougang in order to advance the Balmoral South Iron Ore Project (“Project”) to the financing stage as required by the Susan Palmer Deposit Project Agreement (“Agreement”).
This outcome is a clear demonstration of IM’s continuing commitment towards the development of the Project.
Feasibility Study
The Feasibility Notice was issued following a review of the results of the Feasibility Study as released to the market via a separate ASX announcement dated 18 June 2008.
Key tasks during financing stage
During the financing stage, IM and Shougang will continue to work in a collaborative manner towards the goal of obtaining a Finance Offer. Under the Agreement, Shougang has exclusive rights to deliver a Finance Offer to IM which would provide the necessary funding to implement the Project.
Key tasks during the financing stage include the following:
�� expedite additional in-fill drilling to upgrade the Ore Reserve from the current estimate of 680 Mt (Probable Reserve as announced on 20 August 2007);
�� finalise technical and commercial studies for a Cape Preston deep water port development proposal. This represents an alternative to the base case barge loading and trans-shipping port option included in the Feasibility Study;
�� optimise Project value through further procurement and construction options from China;
�� expedite environmental and other government approvals;
�� appoint a suitable advisory bank to facilitate discussions with Chinese policy banks;
�� complete additional work to support the proposed Joint Venture structure that would be executed if Shougang provide a suitable Finance Offer; and
�� agree a turnkey fixed price lump sum Construction Contract, for Shougang to construct the Project.
Andrew Caruso