ASX ANNOUNCEMENT1 May 2007$38,498,435 RAISED BY PLACEMENT TO...

ASX ANNOUNCEMENT
1 May 2007
$38,498,435 RAISED BY PLACEMENT TO JINCHUAN
Allegiance Mining NL (“Allegiance”) is pleased to announce that it has entered into two agreements (“Agreements”) with Jinchuan Group Limited (“Jinchuan”) under which:
• Jinchuan will subscribe for 48,123,044 fully paid ordinary shares in Allegiance (“New Shares”) at an issue price of A$0.80 (80 cents) per share to raise A$38,498,435. The issue price was fixed on 26 April 2007 based on the volume weighted average closing price (VWAP) of fully paid ordinary shares of Allegiance trading on ASX over the four weeks prior to 26 April 2007.
• The issue of shares will extinguish all obligations under Jinchuan’s A$5 Million Subordinated Loan and thereby extinguish that loan.
• Jinchuan will own a total of 11.03% of the issued shares in Allegiance.
• Jinchuan and Allegiance have entered into a framework offtake agreement for all further metalliferous discoveries made in Tasmania.
The Agreements are subject to and conditional upon statutory approvals by the Provincial Government of Gansu Province and the Central Government of the People’s Republic of China.
On finalisation, a Jinchuan representative will be invited to join the Board of Allegiance Mining NL.
The funds raised from the issue of the New Shares will be applied towards the further development of the Avebury Nickel Project. Shareholder approval is not required to make the placement.
The Agreements are designed to raise further funding required for the construction of the plant at Avebury, to secure the future sales of the Company's nickel deposits and to further forge the close, mutually profitable and otherwise beneficial relationship between Jinchuan and Allegiance. Jinchuan is China's largest, and the World's fifth largest nickel producer.
The Directors look forward to progressing our close relationship further for the benefit of our shareholders and the local communities in both Tasmania and Gansu.
TONY HOWLAND-ROSE
MSc, DIC, FGS, FIMMM, FAusIMM, FAIG, CEng
CHAIRMAN

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