purchase includes a3.3 billion worth of sales

Level 4, 5 Mill St
Perth WA 6000
PO Box 7752
Cloisters Square WA 6850
ABN 46 008 942 809 Phone: (+61 8) 9322 2288
Fax: (+61 8) 9324 2164
Email: [email protected]
www.austresources.com.au
ASX ANNOUNCEMENT
9 August 2006
The Manager
Company Announcements Office
Australian Stock Exchange Limited
4th Floor, 20 Bridge Street
SYDNEY NSW 2000
Dear Sir/Madam
AUSTRALASIAN RESOURCES PURCHASE INCLUDES A$3.3 BILLION WORTH OF SALES
Following on from the Company’s announcement on Monday to purchase International Minerals Pty Ltd (IM), a majority owned subsidiary of Professor Clive Palmer, Australasian has resolved to negotiate extensions to the current off-take agreement with Macram Limited (part of the Macsteel International Group).
An off-take sales contract is already included in the IM purchase. It includes a commitment of 2 Mtpa of pellets for 15 years, which on today’s prices, equates to A$3.3 billion dollars of firm sales commencing by December 2009. The agreement requires IM to deliver a minimum 1 Mt of pellets in the year 2010.
The market sale price in the agreement is set at world market price plus an allowance for the freight differential. The contract also provides an extension from 2Mtpa to 7Mtpa for the same 15 year period subject to further negotiations with MacSteel and if successful, would equate to A$11.5 billion of sales revenue.
The Company is buoyed by the fact that a premium to benchmark prices is available as proven by this agreement and intends to pursue negotiations as soon as practicable.
Yours faithfully
Darren Hedley
Managing Director
ABOUT MACSTEEL: Macsteel is a respected international service provider, linking producers and consumers of steel and similar commodities, by providing efficient and reliable communication and supply lines via marketing, shipping, logistics and finance. It operates through more than 60 offices around the globe.