issued through FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311 231 South Road, MILE END SA 5031 Ph: 08 8234 9555 Fax: 08 8234 9566 [email protected] 1 N E W S • R E L E A S E • FOR IMMEDIATE RELEASE Thursday 14 June 2007 • ADELAIDE RESOURCES MINERALS AND ZIRCON FOCUS • $10 MILLION URANIUM SPIN-OFF ANNOUNCED Adelaide Resources Limited (“ADE”) today announced plans to package its uranium exploration assets into a separate company as it intensifies work on developing other mining projects. The move – which includes an expected zircon mine decision next year for Adelaide Resources’ Tripitaka mineral sands project on South Australia’s Eyre Peninsula - comprises: • The proposed centralisation of the Company’s sizeable Gawler Craton and Moonta district uranium exploration assets in South Australia – many already hosting drill intersections - in a new ASX-listed uranium explorer, Eyre Energy Limited • The $10 million Eyre Energy Initial Public Offer to be launched in July with a planned ASX listing by September • Shareholders in Adelaide Resources to have a priority allocation, in addition to any benefit from an expected eventual in-specie distribution by the Company of up to 80% of any direct holding it may emerge with in the new Eyre Energy entity • The IPO to have the support of existing Adelaide Resources’ uranium exploration joint venture partner on selected Eyre Peninsula tenements - Quasar Resources Pty Ltd - the company which recently made the discovery of the substantial Four Mile uranium deposit near Heathgate’s operating Beverley uranium mine • Adelaide Resources to become a non-uranium explorer with an aggressive exploration focus on its promising gold, copper and iron ore projects in South Australia and the Northern Territory • The ongoing achievement of milestones for the Tripitaka zircon project, including a resource upgrade in the coming quarter, and completion by year’s end of a pre-feasibility study for the Company’s world-class Colona zircon project – a joint venture in South Australia’s Eucla Basin with Iluka Resources. issued through FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311 231 South Road, MILE END SA 5031 Ph: 08 8234 9555 Fax: 08 8234 9566 [email protected] 2 “We are currently seen primarily as an imminent zircon producer – which we are – but with little value attached to our considerable additional multi-commodity exploration assets, including uranium,” Adelaide Resources’ Executive Chairman, Mr Keith Yates, said today. “Today’s announcement reflects a strategy to realise the full value of these exciting uranium assets for our shareholders,” Mr Yates said. “Strategically, Adelaide Resources has held these, in the main, previously drilled and sound uranium assets for more than a decade,” he said. “In the interim, we built a diversified and balanced suite of mineral exploration projects as the price and demand dynamics of the nuclear energy cycle were not the favourable commercial climate now driving the explosion in uranium exploration. “This has seen Adelaide Resources emerge with a particularly strong Board of some of Australia’s most successful gold, copper and base metals executives. “Once the Eyre Energy IPO is completed, we will have greater capacity to further enhance the Company’s exploration opportunities, including further acquisitions.” “We will, however, not be looking to be a uranium explorer in any shape or form. That will be the role of Eyre Energy.” Adelaide Resources has interests in the Rover copper gold project in the Northern Territory – and in South Australia, the Barton (nickel), Warramboo (iron ore), Anabama (copper) and Moonta-Wallaroo (copper-gold) projects. New company to own large SA uranium acreage The proposed new Eyre Energy Board will include Quasar’s Managing Director, Mr Geoff McConachy, who led the team behind the Four Mile discovery – which Mr Yates today described as “the most significant uranium find in Australia in more than 20 years”. Eyre Energy’s suite of exploration assets covers more than 9,000 square kilometres of the Gawler Craton and Moonta districts – making it one of the largest such uranium holdings in South Australia. The new company will also benefit from the transfer to it of Quasar’s existing joint venture obligation to Adelaide Resources to spend $3 million by November 2009 on exploring for uranium in certain style Eyre Peninsula-based tenements and tenement areas. MEDIA CONTACT: Keith Yates Adelaide Resources (08) 8271 0600 / 0417 801 479 Kevin Skinner Field Public Relations (08) 8234 9555 / 0414 822 631
ADN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
(20min delay)