announcement, page-2

Dear Sir/Madam

ALBIDON SECURES FAVOURABLE NEW TERMS WITH BYRNECUT OFFSHORE
The Board and Management of Albidon Ltd are delighted to announce that they have today extended their relationship with Byrnecut Offshore (?Byrnecut?) for the continued development of the Munali Nickel Mine in Zambia.
Byrnecut have worked with Albidon since the inception of the Munali mine and have provided exceptional technical service to the development of this site. They are experienced mine developers and have an outstanding production and safety record on site.
The terms of the extended contract are likely to result in cost savings to Albidon Ltd of approximately US$4,000,000 per annum as the rates negotiated are, in totality, more favourable to those achieved in 2008.
Albidon CEO, Jian-Hua Sang commented that ?we are delighted to extend our agreement with Byrnecut and we are now satisfied with the revised terms. We expect the revised contract to be between 10% - 15% lower than was previously paid. Clearly this will only help our cash flow?.
The company is currently actively completing a number of strategy initiatives and reports, and this detail will be made available to the market as soon as possible.
Yours faithfully

David Round
Company Secretary