APG and Tico Renegotiate, page-5

Austpac-Ticor Renegotiate Joint Venture Agreement

Document date: Fri 12 Jul 2002 Published: Fri 12 Jul 2002 10:28:36
Document No: 192291 Document part: A
Market Flag: Y
Classification: Other
AUSTPAC RESOURCES NL 2002-07-12 ASX-SIGNAL-G

HOMEX - Melbourne

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Austpac Resources NL and Ticor Limited are well advanced with
negotiations on a new agreement to replace the current worldwide
agreement for the use of the ERMS/EARS synthetic rutile process
announced in July 2000.

Austpac and Ticor are also renegotiating the AusRutile agreement
with Indian Rare Earths Limited (TRE) that was signed in October
2000. The original AusRutile agreement envisaged building a 10,000
tpa ERMS/EARS synthetic rutile plant adjacent to IRE's heavy
minerals processing facilities near Chatrapur in the state of Orissa,
India. The new agreement will cover the feasibility study and
possible development of a 100,000 tpa ERMS/EARS facility at
Chatrapur.

The Austpac-Ticor Joint Venture has expended more than $2.5 million
on pilot plant test programs, engineering feasibility and assessment
work on the AusRutile Project.

Details of the new agreement with Ticor will be released as soon as
formal documentation is finalised, which is expected within the next
month.

Austpac looks forward to progressing the Orissa project, and also to
developing new synthetic rutile projects in Australia and elsewhere.

For further information please contact:

M J Turbott
MANAGING DIRECTOR
Austpac Resources NL

Tel: (61-2) 9221-3211