mcc pays 275m for cms middlemount... nc

10 Dec 2007 ASX Release

MACARTHUR COAL ACQUIRES
CUSTOM MINING LTD FOR $275M

The Board of Directors of Macarthur Coal Limited (ASX: MCC) has today announced the signing of a Share Sale Agreement (SSA) for the purchase of 100% of the shares in Custom Mining Ltd. Payment for the acquisition will be split between cash and Macarthur Coal shares, as follows:
• $65 million cash, payable on execution of the SSA
• $200 million of Macarthur Coal shares VWAP 30 days being 24,776,393 shares
on satisfaction of all conditions precedent and
• A maximum of an additional $10 million of Macarthur Coal shares, issued on 31
March 2009 capped at $9.00 per share on satisfaction of all conditions
subsequent.

Custom Mining has interests in two projects being 70% of the Middlemount project
and a farm-in agreement for up to 70% of the Dingo West prospect.
The other 30% shareholder in the Middlemount project is Paway Pty Ltd, a wholly
owned subsidiary of Noble Group Limited in Hong Kong. Paway Pty Ltd also holds an
option to acquire an additional 20% in the project for $100 million.
The Middlemount project is located six kilometres southwest of the township of
Middlemount in central Queensland, approximately 280 kilometres from the
Dalrymple Bay Coal Terminal and 390 kilometres from the port of Gladstone.
Leighton Contractors Pty Ltd has just commenced bulk sample open-cut mining
activities. It is forecast that 70% of the production will be a high-quality coking coal
and 30% a low volatile (LV) PCI coal. Subject to availability of toll washing, rail and
port capacity, first coal production could be in 2008. The Middlemount project has a
JORC resource of Measured 30.6Mt, Indicated 37.8Mt and Inferred 31.7Mt making a
total of 100Mt.