mehdiabad $23.6 billion usd progresses to finance

12 May 2006
Company Announcements Office
Australian Stock Exchange Limited
20 Bridge Street
SYDNEY NSW 2000
Dear Sir
Re: Union Resources advances development of the Mehdiabad Zinc Project
The Board of Directors of Union Resources Limited (“Union” or the “Company”) is
pleased to announce that it is taking immediate steps to progress the world class
Mehdiabad zinc, lead and silver project (the “Mehdiabad Project”) from the
exploration and feasibility phases to the more advanced phases of project financing
and development.
Union has appointed Société Generale Corporate & Investment Banking (“Société
Generale”) as its financial adviser in relation to the debt and equity financing of the
Mehdiabad Project.
The Mehdiabad Project represents one of, if not, the largest undeveloped zinc
resources in the world. Union believes that the appointment of Société Generale is a
major step forward in raising the required finance for this very significant low grade,
complex ore body which will result in the Mehdiabad Zinc Company becoming a
major zinc producer, with operating costs in the lowest quartile of world production.
To prepare for this significant future growth the Company recognises the need to
strengthen the management team in order to complete the task of building and
operating a world class mine and zinc processing plant and industrial complex in
Mehdiabad. Therefore Union, with the support of the current management, intends in
due course to make a number of senior executive appointments to ensure Union is
successful in its aim of developing the Mehdiabad Project and becoming a major zinc
producer.
Union is also planning to re-locate its operational head quarters to either Europe or
the Middle East to be nearer to the capital markets and potential sources of finance
for this project.
Yours faithfully
UNION RESOURCES LIMITED