Resource Increases by Over US$300M Construction at Full Pace...

Resource Increases by Over US$300M Construction at Full Pace

SYDNEY, Australia, July 25 /CNW/ -- Allegiance Mining NL (ASX Code: AGM)
is pleased to advise that construction is at full pace and production is
scheduled to commence early in the 1st Quarter 2008. The main long-lead item,
the primary ball mill is being installed on site by Outotec (Australasia) Pty
Ltd (formerly Outokumpu Technology Australasia Pty Ltd) for completion in late
August. Foundations and steel fabrication are essentially complete and the
buildings are being erected. The project will mill 900,000 tonnes of ore
producing 8,500 tonnes of nickel ("Ni") in concentrates pa. The revised
business plan currently extends to June 2016 - to extend as resources expand.
The entire senior management team for the Avebury Project has been
successfully recruited.
Tony Howland Rose, Chairman of Allegiance said "the results from the
latest drilling is showing a potential increase of over 10,000 tonnes which
at current prices is in excess of US$300m. Tony continued "the drilling
results that have extended the strike length of the Bintje ore zone, and the
in-fill drilling of East Avebury-Saxon that has extended the strike length of
the mineralised zones and the North Avebury Extended orebody have not yet been
included in resources category. The resources reported as at March 2007 were
12 million tonnes with grades of 1.11% nickel containing 131,000 tonnes. David
Deitz added " we also are pleased with our offtake partner Jinchuan Nickel
Group who have recently completed a placement of A$33.04 million at A$0.80 and
are now the largest shareholder with 11%.
The company is excited that we are closing in on production and will be
shipping our first nickel concentrate early in 2008.
A full copy of the quarterly report is available at
www.allegiance-mining.com.au

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For Further Information Contact:
David Deitz:
+61-02-9397-7777 or +61-411-858-830
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For further information: David Deitz of Allegiance Mining,
+61-02-9397-7777 or +61-411-858-830 Web Site:
http://www.allegiance-mining.com.au