Satisfaction of Banking Conditions Precedent,Debt Drawdown and...

Satisfaction of Banking Conditions Precedent,
Debt Drawdown and Production Timing
Australian Zircon is pleased to advise as follows:
• Satisfaction of Banking Conditions Precedent and Debt Drawdown
The Commonwealth Bank of Australia has recently advised that all of the Conditions
Precedent to Drawdown have been either satisfied or waived. The Company has
drawn down its first tranche of project debt as it continues with the construction of the
Mindarie Zircon Mine in the western Murray Basin.
The Company has previously announced that the Commonwealth Bank of Australia
had approved of a $47 million facility in relation to the construction and
commissioning of the Mindarie Mine, inclusive of a $5 million cost overrun facility.
• Production Timing
Construction of the Mindarie Zircon mine continues to run smoothly under the
auspices of project management firm Parsons Brinckerhoff and principal engineering
firm RJ Robbins and Associates.
The project is scheduled to begin commissioning in June of this year and to achieve
practical completion in August. First shipments of mineral products are due to leave
Port Adelaide in September.
Practical completion was originally scheduled for the end of May. As advised to the
ASX on 16 November 2006, completion was delayed by four weeks in order to
complete a review of opportunities to expand production of the Mindarie operation.
The remaining delay has resulted from an engineering redesign which will facilitate
expansion of project productive capacity, should such a decision be made later in
mine life.
Yours faithfully,
John G Branson
Chairman