The directors of Boulder Steel Limited announced that they have signed the third Framework Agreement with Arabia for Business Strategies, pursuant to their extended memorandum of understanding originally announced to the market on May 25th 2009.

Framework Agreement No 3 - Raw Materials
The purpose of this agreement is to establish a framework for the further development of certain aspects of the terms of the strategic partnership and related matters set out in the memorandum of understanding entered into between the parties on May 24th 2009 and in particular to:

1. Set out the parties' understanding in relation to the venture to be pursued by them relating to the joint acquisition of raw material resources related to iron and steel making in Australia either through direct investment in raw material resources or through the acquisition of equity in companies owning such resources (Raw Material Projects)

2. Set out the parties' understanding of their respective capabilities relevant to the Raw Material Projects and the role that each will play in the Raw Material Projects

3. Establish a common understanding as to the current status of the business planning in relation to the Raw Material Projects

4. Agree a process for the parties to work together to pursue the Raw Material Projects

5. Acknowledge external factors the parties will need to take into account in pursuit of the Raw Material Projects

6. Boulder will have a free carried interest of 5% in all Raw Material Projects which are successfully acquired in Australia