Shaw Acquires Eight Tenements Prospective for Manganese and Iron Ore ASX RELEASE: 6 October 2008 Shaw River acquires 85% Interest in Eight Tenements prospective for Manganese and Iron Ore Shaw River Resources Ltd (“Shaw River”) (“SRR”) is pleased to announce the acquisition of an 85% interest in the eight Ashburton tenements adjacent to its Mt Minnie Project in the Ashburton region of WA from Contact Uranium Ltd (“Contact”). The tenements are considered prospective for manganese, copper, tungsten, gold and uranium and iron ore. ”These acquisitions extend our Mt Minnie tenement holding by 370km2 to 2500km2. We consider the entire area as having excellent prospectivity for large scale mineral deposits. We will focus on manganese, iron ore and base metal exploration on the tenements. The acquisition complements our existing portfolio and builds upon Shaw River’s Manganese strategy” commented Vincent Algar, Shaw River’s Managing Director. Highlights of the tenements being acquired are: o An anomalous manganese-iron rich dolomite horizon related to a prominent structure and unconformity surface occurs on the tenements over a distance of 25km. The horizon is a primary target for manganese, iron and base metal exploration. o The area is considered prospective for buried CID (Channel Iron Deposits), which occur elsewhere in the region related to ancient drainages. o Drilling at the historical Mt Murray copper workings identified anomalous copper grades including 3m at 0.27% Cu. High grade copper and silver were worked historically at the Mt Murray with grades up to 500 g/t silver reported. o Sampling by Contact returned samples up to 5.14% Copper and 26.7 g/t Silver from the Mount Murray Workings. o Historical exploration in the area has reported small, but high grade occurrences of copper, silver, lead, tungsten, tantalum barite and fluorite bearing pegmatite. The occurrences are often associated with the intersection of carbonate rocks (dolomites, limestones and marbles) and West-North West trending regional structures. o Tungsten mineralisation, in the form of wallasonite (W03) will be targeted at known granite/carbonate contacts on the tenements. o The tenements consist of eight granted tenements. o Shaw River plans to expand its current Mt Minnie exploration program into this new area, beginning with integration of the newly acquired data with Shaw River’s extensive GIS database. Page 2 of 3 Key Terms of the Acquisition: o Shaw River will acquire an 85% interest in eight granted tenements held by Contact covering 370km2 to the south of Shaw River’s ten Mt Minnie tenements in the Ashburton region of WA. o Contact retains a 15% free carried interest in the tenements until a decision to mine, at which point it can elect to contribute to the project’s development or sell the rights to SRR or its nominee. o The consideration is 2,000,000 ordinary shares in SRR and 1,000,000 20 cent 5 year options. These securities will be issued upon signing of a Formal Agreement between the parties, within 90 days of signing the Letter Agreement signed on 6 October 2008. A voluntary escrow period of three months will apply to issued securities. The value of the shares is based on the 5 day VWAP price at the date of the signing of the letter agreement with Contact. o The acquisition and issue of shares and options is subject to the receipt of all necessary regulatory approvals including shareholder approval, which will be sought at the annual general meeting of shareholders to be held on 18 November 2008.
CTS Price at posting:
7.6¢ Sentiment: Buy Disclosure: Held
