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Australasian On Track With Development At Balmoral South Iron Ore Project

Monday, July 16th, 2007

Australian iron ore development company Australasian Resources Limited is on track with the development of its 100 per cent owned Balmoral South Iron Ore Project, located in Pilbara region of Western Australia, with infill drilling almost fifty per cent complete and the Shougang technical team soon to arrive in Australia.
Key Points:
• Infill drilling designed to upgrade Mineral Resource and Ore Reserve at project fifty per cent complete
• Upgrades to the Mineral Resource and Ore Reserve anticipated to occur during Q3 2007
• Feasibility study continuing
• Shougang technical team to arrive in Australia during August 2007
The Company is currently conducting an infill drilling program that has been designed to upgrade the Mineral Resource and Ore Reserve in future, as required for the Balmoral South Bankable Feasibility Study (BFS).
Both Reverse Circulation (RC) and diamond drilling are being undertaken with pleasing progress to date. Since the last market update at the end of May 2007, an additional ten (10) drill holes have been completed, including 1,700 metres of RC drilling and 500 metres of diamond drilling.
To date, 20 of the 42 holes planned in the infill program have been completed. A summary of the total drilling to date for Balmoral South is shown below:
Initial resource drilling 10,880 metres
In-fill drilling 6,650 metres
Total drilling 17,530 metres
Australasian expects the current phase of drilling to be concluded by September 2007.
Further upgrades to the Mineral Resource and Ore Reserve are therefore anticipated to occur during the 3rd Quarter 2007.
Samples for the drilling program will be also analyzed to support pit and plant design proposed in the BFS.
Feasibility Study Progress
The Feasibility Study process is continuing led by Study Director, Mr Nick Jukes.
Further discussions with CP Mining Management Pty Ltd, a wholly owned subsidiary of CITIC Pacific Ltd, were held recently regarding the design and development of shared facilities, including the port. These discussions will advance the planning of key infrastructure for the BFS.
A technical team from Shougang is due to arrive in Perth in August 2007 to work with the current Project team and further advance BFS studies.
Environmental approval work is progressing and the target date for the completion of the Feasibility Study is March 2008.

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