Very positive/reassuring development imo.6 July 2005Company...

Very positive/reassuring development imo.




6 July 2005
Company Announcements Office
Australian Stock Exchange Limited
20 Bridge Street
Sydney NSW 2000
RE: Political risk insurance obtained for the Mehdiabad Zinc Project

Dear Sirs
Union Resources Limited (UCL) announces that it has arranged political risk
insurance with the Export Finance and Insurance Corporation (EFIC), for an initial
period of 18 months effective from 30 June 2005.
The insurance will cover the company’s investment in the bankable feasibility study
for the Mehdiabad Zinc Project in Iran, to a maximum of $US 4.5 million. The
insurance cover will be reviewed at the commencement of construction of the project.
The political risk insurance covers the following events:
• war damage;
• forced abandonment; and
• expropriation
in relation to UCL’s investment in Iran.
The expropriation insurance will take effect from the date that UCL’s application for
an investment licence is approved under the Iranian Foreign Investment Promotion
and Protection Act (FIPPA).
The FIPPA is promulgated under Iranian legislation and is designed to provide
protection from expropriation of foreign investment into Iran by a government
authority. The FIPPA protection application was lodged in May 2005. UCL is
uncertain at this time as to when the FIPPA protection will be granted.
UCL welcomes EFIC’s willingness to provide political risk insurance in relation to the
bankable feasibility study phase of the Project.