announcement

ASX ANNOUNCEMENT


30 June 2006


The Manager
Company Announcements Office
Australian Stock Exchange Limited
4th Floor, 20 Bridge Street
SYDNEY NSW 2000


Dear Sir/Madam

FOREIGN INVESTMENT REVIEW BOARD APPROVES CITIC PACIFIC LANDMARK DEAL

Australasian Resources Ltd (Australasian or the Company) is pleased to announce that the
Foreign Investment Review Board has approved CITIC Pacific's (CITIC) application to
purchase the mining rights for 6 billion tonnes of iron ore from Mineralogy Pty Ltd.
Mineralogy wholly owns the massive Balmoral suite of tenements where in excess of 4 billion
tonnes of magnetite resource has already been delineated, and the potential exists to host
between 60 and 100 billion tonnes. The agreement with CITIC includes the development of
a port and associated infrastructure.

Australasian Resources is close to finalising the terms of their exclusive negotiating and due
diligence agreement with Mineralogy over the right to mine 1 billion tonnes of iron ore on part
of the adjoining Southern Block of Balmoral. Under the terms of this agreement,
Australasian will have access to the port on a shared pro rata operating and capital cost
basis.

This is a key milestone for the Company and confirms our belief that we are witnessing the
birth of a new world class iron ore producing region in the Pilbara.


BACKGROUND

Australasian Resources' Project Background

As initially announced in December 2005, the Company has entered into an exclusive "Due
Diligence and Negotiation Agreement" with Mineralogy to acquire various mining rights to
iron ore on tenements held by Mineralogy in the Pilbara. The current "Balmoral South
Project" proposal, as announced by the Company on 3 May 2006, envisages Australasian
acquiring the rights to mine 1 billion tonnes of magnetite iron ore from part of Mineralogy's
Southern Block mining leases. The Company would then conduct feasibility work on the
development of operations to produce magnetite concentrate, pellets or other value added
iron ore products from the magnetite ore.



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Citic Pacific

CITIC Pacific is a major diversified business incorporated in Hong Kong and listed on the
Hong Kong Stock Exchange. It has a current market capitalisation of approximately HK$48
billion (A$8.6 billion) and its largest shareholder is the PRC Government, with a 29%
shareholding. CITIC Pacific's business interests include steel manufacturing in the PRC,
telecommunications, property, power and a 26% stake in airline Cathay Pacific.

The Mineralogy - CITIC Pacific Agreement

Under the terms of its announced agreement with Mineralogy, CITIC have agreed to acquire
from Mineralogy rights to mine up to 6 billion tonnes of magnetite iron ore from the Balmoral
deposit.

Initial rights to mine 1 billion tonnes of magnetite iron ore from the Balmoral magnetite
deposit are being acquired by CITIC for US$215 million, rights to another 1 billion tonnes,
subject to confirmatory drilling, are being acquired for US$200 million and rights to up to a
further 4 billion tonnes of magnetite, subject to exploration drilling, are being acquired for
US$200 million for each additional 1 billion tonnes. Mineralogy will also receive a royalty
from CITIC being A$0.30/t of ore mined and an additional 6-10% revenue based royalty on
production tonnage exported.

The agreed deal also anticipates capital expenditure of US$2.47 billion to be arranged by the
CITIC Pacific group for the development of mining and processing operations, port and
related infrastructure at Cape Preston.

More complete details of the agreement between Mineralogy and CITIC Pacific are available
in the announcement by CITIC Pacific to the Hong Kong Stock Exchange, which is available
on CITIC Pacific's website at www.citicpacific.com.


Any queries can be directed to Darren Hedley on +61 8 9322 2288.





Darren Hedley
Managing Director