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Australasian Resources Ltd
Monday , 16 Apr 2007
AUSTRALASIAN RESOURCES BUOYED BY STRONG RELISTING

Western Australian mining company Australasian Resources Ltd ("Australasian") today made a strong return to the Australian Stock Exchange (ASX), opening at A$2.22 - an almost 100 per cent premium to its share price when it entered voluntary suspension on 14 December 2006.

Following a strong trading day, with almost eight million shares traded, Australasian finished at $1.85, a 61 per cent premium over the last closing price.

Mr Hedley said today: "As a company we are very pleased with the market reaction to our relisting, but I'm certainly not surprised considering the quality of the assets in the company now."

"We have worked very hard during the period of suspension to put all the blocks in place to build a world-class company.

"With the majority of this complete and the company back trading on the ASX, we look forward to continuing the positive momentum we have generated in recent months."

The relisting of Australasian followed a number of significant developments:

1. Confirmation of landmark agreements with entities associated with major Chinese steelmaker, Shougang Corporation, for the development of its major Balmoral South Iron Ore Project ("Project") in the Pilbara region of Western Australia.

These agreements include:

- Share subscription agreements executed with entities associated with major Chinese steelmaker, Shougang Corporation to raise A$56 million with attaching options to raise a further A$42 million on exercise.

- Project Agreement executed with Shougang Holding (Hong Kong) Limited ("Shougang Holding") to complete studies suitable for the financing and development of its major Balmoral South Iron Ore Project ("Project") in the Pilbara region of Western Australia.

- Following Shougang's election to proceed with full-scale project development, Shougang Entities shall:

i. finance 100% of the Project funding (estimated at US$2.1 billion) through an interest free project loan;

ii. guarantee the purchase of 100% of iron ore products from the Project; and

iii. construct the Project via a related Shougang entity or guarantee construction by other suitable constructor.

2. A significant upgrade to its ore reserve estimate at the Project (from 346 million tonnes to 547 million tonnes Probable Ore Reserve).

The ore reserve estimate would provide 13 years of premium iron ore products for export.

"We now intend to fast track the outstanding Balmoral South project studies necessary for full project finance where a formal decision to mine can be made," Mr Hedley said.

"We also intend to rapidly progress our nickel, copper and uranium assets. "

Fully diluted, Australasian has a market capitalisation of approximately A$923 at today's close, an impressive gain from the A$15M it was back in October 2005.

For further information please contact the undersigned.

Kind regards

Darren Hedley

Managing Director

About Balmoral South

The Balmoral South Iron Ore Project comprises rights to mine 1 billion tonnes of magnetite iron ore from part of the Susan Palmer deposit within the larger Balmoral deposits in the Pilbara region of Western Australia. The current proposed development plan involves the production and export as final products of 5 Mtpa of iron ore concentrate, 5 Mtpa of iron ore pellets and approximately 1.5 Mtpa of HBI. This is after allowing for the internal usage of concentrate for pellets and pellets for HBI.

The Project has a number of key competitive advantages, including:

• a coastal Pilbara location, which enables conveying of products to port and which is close to Asian markets;

• indications from metallurgical test work that iron ore products with very high iron content (+70% Fe concentrate grade, 68% Fe pellets) and low impurities could be produced from the Project's magnetite iron ore and the proposed processing facilities;

• favourable infrastructure access including conditional rights to shared use of a proposed port under an infrastructure sharing agreement between IM and Mineralogy Pty Ltd and positioning adjacent to a major gas field on the North-West shelf;

• the ability to produce high quality pellets and the availability of competitively priced natural gas allows the production of value added iron products such as Midrex HBI briquettes;

• being party to a State Agreement in respect of the Project; and

• the ability to fast track the Project feasibility and development as Australasian will have access to the extensive feasibility work already completed by Mineralogy on the adjoining George Palmer deposit and extensive work completed by Australasian over the last 15 months.