well, the offer is in. shame on you directors

13 August 2009

Australian Securities Exchange
Company Announcements
Level 4
20 Bridge Street
Sydney NSW 2000

FELIX RESOURCES RECOMMENDS ALL-CASH OFFER FROM YANZHOU COAL MINING COMPANY

Highlights
Shareholders will receive A$16.95 per share in cash from Yanzhou Shareholders will also receive dividends of A$1.00 per share
Shareholders will also receive an in-specie distribution of shares with a cash backing of
A$0.05 per share in Felixs subsidiary South Australian Coal Corporation (SACC) The transaction is unanimously recommended by Felixs Board of Directors subject to the
opinion of the Independent Expert and in the absence of a superior proposal The consideration reflects an attractive premium to Felixs share price when taking into
account the dividends, ,,spin-off of SACC, and recent take-over speculation
As part of the A$1.00 per share in total dividends, Felix is today declaring a fully franked
dividend of A$0.50 per share. The remainder of the dividends are conditional on
approval of the transaction and are expected to be fully franked Consolidates Yanzhous position in the Australian coal market and provides expertise
and substantial funding capacity for the continued development of the Moolarben
project and for future exploration and development Yanzhou is committed to retaining Felixs existing employees and management and
maintaining the current workforce at Yanzhous current Australian operations. Yanzhou
will grow the combined workforce as development projects are brought into production
and future exploration opportunities become development projects Yanzhou is committed to establishing a strong corporate presence in Australia and will
keep Felixs head office located in Australia Yanzhou will continue the timely development of Felixs Moolarben project and remains
focused on funding and growing Felixs exploration program in Australia, including the
Athena, Wilpeena and Harrybrandt projects Yanzhou will continue the research and development on Felixs Ultra Clean Coal
technology at Felixs Cessnock R&D facilities Yanzhou is committed to working with Felixs existing joint venture partners to ensure
optimal performance of Felixs assets. These joint venture partners are established multi-
national companies Completion of the transaction is subject to regulatory approvals and other conditions
including the ,,spin-off by Felix of SACC.