SPH continues to forge ahead with deals like this one today.This...

SPH continues to forge ahead with deals like this one today.

This little company will start to be noticed soon - have a look for yourself

Cheers !

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I am pleased to announce that a second major steel producer and Direct Reduced (DR) pellet
consumer from the Middle East (Gulf) region, Qatar Steel Company (QASCO), has signed a
Share Placement Agreement to acquire a significant (9.07%) shareholding in the Company.

The agreement involves the issue of a further 9,125,000 fully paid ordinary shares to QASCO
at an issue price of A$1.15 per share, raising a total of A$10,493,750.

In addition, in order to meet QASCO's desire to have a strategic stake in Sphere, some of the
Directors of Sphere have agreed to sell a total of 2,300,000 shares to QASCO at the same
price per share, and exercise a total of 2,300,000 options, as part of the transaction.

The QASCO placement follows another recent placement of 10,300,000 shares at $1.00 per
share to the Saudi Arabian Steel Company, Hadeed. Hadeed is a wholly owned subsidiary of
the giant Saudi Basic Industries Corporation (SABIC), and is the largest steel producer in the
rapidly growing Gulf region.

The combined 17.24% shareholdings in Sphere held by Hadeed and QASCO, the two largest
steel producers in the Gulf region, will help underpin the development of the 7Mt/a Guelb el
Aouj DR pellet project in Mauritania.

Both Hadeed and QASCO have significant Direct Reduced Iron expansion plans, and are
seeking long term DR pellet supply from Mauritania to support these expansions.


Sphere and our joint venture partner SNIM welcome Hadeed’s and QASCO’s investment in
Sphere in the knowledge that they will bring market support and financial strength to the
development of the Guelb el Aouj project and are interested in future expansion opportunities.

A joint press announcement from Qasco and Sphere follows.

Yours sincerely,

Sphere Investments Limited


Alexander Burns
Managing Director