1. No. AR1 is not aware of any information concerning it, that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities.
2. a) Not applicable; b) Not Applicable; c) Not Applicable
3. Austral Resources Australia Ltd continues to deliver on its Initial Public Offering objectives and milestones through:
– The commencement of mining at Anthill in January this year and removal of overburden.
– The increase in ore production at Anthill.
– Securing its cash position via an offtake and prepayment agreement with Glencore.
– Commencement of ore shipments from the Anthill Mine to the Mt Kelly plant.
– Imminent commencement of heap leach stacking and projected increase in copper cathode production from approx. 100 tonnes per month to 1,000+ tonnes per month.
– Continued and ongoing discussions with multiple potential joint venture partners.
Austral is also aware of the Stockhead article “One copper stock to watch as Robert Friedland’s ‘supply cliff’ approaches” and specifically that the Company CEO, Mr Steve Tambanis “hinted that an exploration deal with an industry gorilla was not far off”.
The article and statements within in it broadly reflect AR1’s disclosures on this point. However the Board of AR1 is of the view that the terminology used is uncertain and lacks specificity as to what constitutes “an industry gorilla” and the timing of when such “exploration deal” will be consummated.
AR1 seeks to address and clarify statements made in this article:
Since listing on ASX, the Company has been approached by multiple parties seeking to conduct earn-in and joint venture arrangements over its current tenement suite. AR1 has consistently advised the market that it is in discussion with potential joint venture partners; more recently in its last Quarterly Report and RIU Conference Presentation.
When selecting potential joint venture partners, the Austral Board adopts a disciplined assessment criteria in ensuring any such arrangement delivers value to shareholders. Key components in such assessment must include their respective exploration expertise, reputation and financial standing.
Consequently, AR1 is reviewing a number of joint venture opportunities and participants that the Board considers meet the key elements of that criteria (i.e. significant participants in the mining and exploration industry).
AR1 is currently negotiating an indicative non-binding earn-in and joint venture transaction with a significant participant in the mining industry that meets that criteria. The transaction term sheet is advanced but remains subject to final negotiation and execution. Once executed, the parties intend to formalise the transaction by negotiating and entering into binding documentation.
AR1 intends to keep the market updated in accordance with its continuous disclosure obligations.
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