ABN 50 009 173 602 1st Floor 10 Stirling Highway Ph: (08) 9386 4699 Nedlands WA 6009 Fax: (08) 9386 9473 All correspondence to: PO Box 1104 Nedlands WA 6909 www.rewardminerals.com COMMERCIAL TERMS AGREED WITH MARTU FOR LAKE DISAPPOINTMENT ASX RELEASE 31 MARCH 2008 As an addendum to today’s ASX announcement, Reward Minerals Limited is pleased to provide further particulars of the financial terms agreed with the Martu people for the Lake Disappointment potash project. Non commercial aspects of the agreement are being finalised for formal documentation. The commercial aspects of the agreement, however, are as follows: - 1. Agreed cash payments based on contractual and project development milestones. 2. A production Royalty on the ‘ex mine’ value of potassium sulphate and other mine products. 3. An allocation of 7 million unlisted options in Reward Minerals Ltd exercisable at $0.50 with an expiry date of four years from issue, representing 10.31% of the fully diluted capital of the Company. The terms agreed are subject to are subject to project development approvals being obtained from the Martu, and the usual Statutory Authorities. We also enclose a copy of a media release made today by Indigenous Energy on behalf of the Martu regarding Lake Disappointment. M RUANE Director 31/03/2008 12:04 PM TRADITIONAL OWNERS FULLY SUPPORT REWARD MINERALS LIMITED LAKE DISAPPOINTMENT POTASH PROJECT ASX RELEASE 31 MARCH 2008 ASX: RWD Indigenous Energy Pty Ltd (IndiEnergy), as exclusive commercial advisor for the Martu people, is pleased to announce that Western Desert Lands Aboriginal Corporation (WDLAC) as the prescribed body corporate holding on trust the determined native title rights and interests of the Martu people, the traditional owners of the land upon which Lake Disappointment is located, and Reward Minerals Ltd (Reward) have agreed commercial terms and signed a term sheet in relation to the Lake Disappointment potash project. This paves the way for a comprehensive mining agreement allowing Reward full access to test and ultimately develop their exciting potash development. Martu fully supports Michael Ruane, Managing Director of Reward, in his endeavours to accelerate the project to reach its full potential in a timely fashion. Mr Joe Procter, Principal of IndiEnergy, said today: These excellent commercial terms were recently accepted at a full community meeting after lengthy negotiations over an eight month period. We believe the presence of generous indigenous equity component as part of the transaction is the way of the future in mining negotiations. Reward has offered equity in a bid to align the future interests of both parties - an innovative strategy which also acknowledges the strength of Martu rights. This outcome clearly demonstrates that progressive companies like Reward are respectful of Martu’s rights and that Reward also appreciates the Martu’s ability to act in a professional and commercial manner. WDLAC Chairman Mr Teddy Biljabu, Community Leader, Mr Brian Samson and WDLAC Chief Executive Officer, Mr Clinton Wolf, issued a joint statement today: We fought long and hard to secure the Martu’s native title rights and now reap the benefits of standing united. Martu are a proud group of traditional desert people who possess significant native title rights. We expect honesty and fair value in exchange for our co-operation, along with an underlying assumption of equity in any project on our land. Gone are the days of the big boys treating us like we are speed bumps in our own country. By signing the term sheet with Reward, we have clearly demonstrated that we will support companies who respect us as the rightful owners, who offer fair value and who act in a transparent, professional and commercial fashion. We are pleased and excited to be moving forward with Reward on this project and will do everything in our power as true business partners to accelerate project development.. For further information or comment please contact: Mr Joe Procter INDIGENOUS ENERGY PTY LTD T +612 9279 1001 F +612 9279 1002 M +61 408 908 068 E [email protected]
RWD Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
