round two for murchison, chameleon , page-3

ASX ANNOUNCEMENT ASX CODE: MMX

6 July 2009

MURCHISON CLARIFIES EVANS AND KOH SETTLEMENT

Murchison Metals Ltd (“Murchison”) refers to the ASX announcement by Chameleon Mining Ltd (CHM) on 6 July
2009 regarding the settlement of the claim by Evans and Koh against Murchison and provides the following
clarification:

1. In an ASX release dated 26 September 2008 CHM stated that the Evans and Koh claim was worth
between $150m and $250m. The settlement represents 2.8% of the mid-point of that estimate.


2. The Offer of Compromise that was accepted by the plaintiffs on 2 July was lodged by Murchison on
5 June 2009. Such offers are common in commercial litigation as a tactic to limit the defendant’s
exposure to paying the plainitiff’s costs in the proceedings and reflect an assessment of the risk
inherent in litigation.


3. In the negotiations that preceded the plaintiff’s acceptance of Murchison’s offer, the plaintiffs made a
number of verbal and written counter-offers including offers of 10m shares, 7m shares and 6 million
shares, all of which were rejected.


4. In relation to potential further proceedings by the plaintiffs for additional shares, Murchison believes
that such proceedings would invariably fall foul of the rule in Anshun’s case, be an abuse of process
and would be liable to be struck out accordingly.
Murchison confirms that the Evans and Koh proceedings are unrelated to the litigation commenced by
Chameleon against Murchison, Crosslands Resources Ltd and others.


The Chameleon litigation is entirely separate from the Evans & Koh matter in terms of pleadings and evidence
and the settlement in the Evans and Koh proceedings should not be regarded as a precedent for a settlement in
the Chameleon litigation.


No inferences can be drawn from the Evans & Koh settlement as to the likely outcome of the Chameleon
litigation as it is fundamentally different in nature and character.