Australian Centrex Metals Limited announced on February 27th 2009 the updates of its iron ore development projects planned to be implemented under JV with Chinese steel mills, projects which are located on Eyre Peninsula, South Australia.

Centrex will establish a 50:50 JV with China’s Wuhan Iron and Steel Company on the development of the Company’s Southern and South Central Eyre Peninsula magnetite deposits. The iron ore deposits stretch from near Port Lincoln in the south to Port Neill in the north in South Australia. Both companies are working jointly to develop a deepwater port capable of accommodating Capsize vessels at Sheep Hill, 20 kilometers north of Tumby Bay on the south east coast of Eyre Peninsula. WISCO in addition will have a 15% stake in Centrex Metals. Relevant Heads of Agreement was entered into between the parties in December 2008.

Centrex Metals will travel to Wuhan, Hebei, China from March 1st 2009 for spending about two weeks to finalize documentation in relation to the JV project. WISCO has agreed to pay Centrex AUD 0.18 per tonnes of Inferred Magnetite Resources for up to 1,000 million tonnes or a maximum of AUD 180,000,000 in staged payments, for the acquisition of a 50% participating interest in the iron ore contained in the tenements in the project area. WISCO has submitted a final joint venture summary report to China’s National Development and Reform Commission before Chinese Spring Holidays and is preparing submission to Australia’s Foreign Investment Review Board, as well.

In addition Centrex is carrying forward the development of Bungalow and Minbrie iron ore deposits located in the Central Eyre Peninsula has agreed with Baotou Iron and Steel of China to jointly implement the development project. Baotou is a strategic shareholder having 10.05% shares in Centrex.

On their visit to China this time, Centrex will also meet representatives of Baotou in Beijing from March 9th2009 so as to finalize the transaction documents pertaining to this project. Baotou has previously advised Centrex that it has received all the necessary Chinese government consents and permits to enter the joint venture. Baotou is also preparing submission to the Australia’s Foreign Investment Review Board.

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