current producer of iron ore

PRODUCTION ON TRACK FOR 500,000 TONNES MILESTONE
DURING APRIL

Australian resources group Territory Resources (ASX:TTY) is pleased to advise that
production at its Frances Creek project remains on schedule, with the Company making
ongoing site improvements to increase efficiency during the wet season.

Territory has now shipped 350,000 tonnes of high grade lump and fines and is on track to
achieve the milestone of 500,000 tonnes shipped during April.

Territory Resources Chairman Michael Kiernan said despite some delays due to wet weather,
we generally have been pleased with the performance at Frances Creek during our first wet
season. During this period we identified some areas where we can make improvement.

To ensure uninterrupted operations during the Northern Territory’s wet we will introduce a wet
processing plant and bituminize the 15km haul road to the rail siding.

“These improvements, all to be funded out of working capital, will help maintain Territory’s
consistent and incrementally increasing production levels,” Mr Kiernan said

The current mine plan is scheduled to produce at an annualized mining rate of 2mtpa by June
2008, which is expected to increase to 2.5mpta by December 2008. Increase in production
will be complemented by increases in port and rail capacity.

The company’s marketing program to China has been able to capitalize on strong spot iron
ore prices and the ongoing strength in the market.

Territory is also continuing its ongoing exploration program, having an agreement to utilize
four Swick Drilling (ASX:SWK) RC rigs over the next 24 months to significantly drill out and
identifying additional tonnage to underpin an extension in mine life.