Western Mining Co. Ltd (601168), a Chinese company principally engaged in the zinc and lead business, and FerrAus, an Australian mining company, announced on Monday that Western Mining will pay at least AUD 15.5 mln to buy a 10% stake in FerrAus.

According to news releases of the two companies, FerrAus would issue 13.53 million to 15.86 million of its shares to Western Mining Co. Ltd at AUD 1.15 per share. The transaction is subject to an approval by regulatory authorities in China and Australia.

Headquartered in Adelaide, FerrAus has an iron ore project that is under development in the East Pilbara Region in Australia. On 5 May 2008, FerrAus’s share price rose 4% and closed at AUD 1.175 per share.

Source: www.sina.com

Date: 5 May 2008

CN01/DM/BT/WH