Operations OfficeUnit 122 Maple AvenueFORRESTVILLE SA 5035Tel:...

Operations Office
Unit 1
22 Maple Avenue
FORRESTVILLE SA 5035
Tel: +61 8 8351 3388
Fax: +61 8 8351 0023
InterMet Resources Limited
[email protected]
[email protected]
ACN 112 291 960
www.intermetresources.com.au
Registered Office
Level 41 Australia Square
264-278 George Street
SYDNEY NSW 2000
Tel: +61 2 8221 0404
Fax: +61 2 8221 0407
4 July 2008
FOR IMMEDIATE RELEASE
InterMet valued at $0.41 to $0.60 per share – REJECT Hillgrove’s Offer
HIGHLIGHTS

InterMet valued at $0.41 to $0.60 per share (fully diluted) by Independent Expert, KPMG

Independent Expert’s ‘assessed value’ of Hillgrove’s offer is $0.23 to $0.30, with the
midpoint representing a 48% discount to InterMet’s assessed value

Independent Directors of Intermet recommend shareholders REJECT the significantly
inadequate Hillgrove takeover offer
Introduction
Intermet Resources Limited is pleased to report the results of the Independent Expert’s Report (“IER”)
prepared by KPMG Corporate Finance (Aust) Pty Ltd. The IER was required under section 640 of the
Corporations Act in relation to the hostile and unsolicited takeover bid for InterMet announced by
Hillgrove Resources Limited on 12 May 2008.
The all-scrip Offer by Hillgrove comprises four (4) Hillgrove ordinary shares for each five (5)
outstanding InterMet shares.
InterMet has previously announced that the Independent Directors of InterMet were considering the
hostile takeover offer recently made by Hillgrove.
Independent Expert’s key findings
The key findings of the IER, which also included an independent geologist’s report, are as follows:

The “assessed fair value per fully diluted InterMet share … is between approximately $0.41 and
$0.60, with a ‘preferred value’ of $0.50”;

That assessment is based on the Expert’s conclusion that InterMet’s fair value lies “in the range
of $29.8 million to $44.4 million, with a ‘preferred value’ of $36.5 million”;

The value of the consideration being offered by Hillgrove is “$0.23 to $0.30 per InterMet share
under the Offer, with a midpoint of $0.26”;

On that basis, the “midpoint of the consideration to be received represents a 48 percent
discount to the preferred value of an InterMet share.”

Accordingly, the Hillgrove offer is “neither fair nor reasonable” to InterMet shareholders.
A copy of the IER and the Independent Geologist’s report will be provided to shareholders as part of
InterMet’s Target Statement, which InterMet expects to dispatch to shareholders shortly.
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InterMet Resources Limited
Independent Directors’ recommendation
Based on the Independent Expert’s findings, InterMet’s prospects and a number of other concerns that
InterMet’s Independent Directors have in relation to the Hillgrove Offer (details of which will be provided
in the Target Statement), the Independent Directors of InterMet consider the Hillgrove offer to be
significantly inadequate and therefore unanimously recommend that InterMet shareholders REJECT
the offer. InterMet’s Independent Directors will NOT be accepting Hillgrove’s offer in respect of any
InterMet shares that they own or control.
To REJECT the Hillgrove offer, simply DO NOTHING and IGNORE all correspondence from Hillgrove
and its advisers.
Further information about the Hillgrove offer and the above recommendation will provided to
shareholders in the Target's Statement shortly.
In the meantime, Intermet shareholders with any queries about the Hillgrove offer are encouraged to
call InterMet’s corporate advisers on (08) 8232 8816.
Yours sincerely.
Garry Ferris
Managing Director