August 29, 2008

Mitsubishi to acquire 50% of Murchison iron ore assets

Murchison Metals Limited announced the signing of binding agreements with Japan’s Mitsubishi Development Pty Ltd, a wholly owned subsidiary of Mitsubishi Corporation, to establish new iron ore mining and infrastructure businesses in the Mid West region of Western Australia.

Under the agreements, Mitsubishi has agreed to acquire 50% of Crosslands Resources Limited the company that holds Murchison’s iron ore mining business including its flagship Jack Hills Project. The agreements also establish new jointly held independent infrastructure businesses to develop the Mid West rail and port infrastructure Oakajee Port & Rail.

As previously announced, under the agreements, Mitsubishi will make two payments to Crosslands to acquire a 50% interest in it. The first payment of AUD 150 million is expected to be made on September 27th 2007.

Highlights
1. Mitsubishi and Murchison complete joint venture arrangements announced on June 18th 2007
2. Mitsubishi acquires 50% of Murchison’s iron ore assets
3. Mitsubishi and Murchison establish 50:50 infrastructure business to develop new Mid West rail and port infrastructure
4. Mitsubishi to make first payment of AUD 150 million on 27 September

Mr Paul Kopejtka executive chairman of Murchison said that the signing of the agreements was a momentous step forward for Murchison. He said that “The signing of these agreements ensures that Murchison is now much closer to realizing its ambition of becoming a world class iron ore and infrastructure company in joint venture with Mitsubishi. Mitsubishi is Japan’s largest general trading company and we are understandably proud to have them as our partner to accelerate the expansion of the Jack Hills Project and develop the associated rail and port infrastructure. We are delighted to have signed binding transaction documents today and we now look forward to working with Mitsubishi to rapidly implement our iron ore and infrastructure plans.”