August 30, 2008

Zinifex gains controlling stake in Allegiance

Zinifex Australia Limited announced that it had taken a controlling interest of more than 50% in Allegiance Mining NL. As a result of this, the takeover bid by Zinifex for all of the ordinary shares in Allegiance is automatically extended and is now scheduled to close on March 31st 2008. Zinifex's offer of AUD 1.10 for each Allegiance share is final.

Mr Andrew Michelmore CEO of Zinifex said that the company is very pleased with reaching this milestone, which is an important step in Zinifex's strategy of diversifying its exposure into high margin metals and expandable mines. He added that the acquisition of Allegiance Mining was also a perfect fit with the recently announced merger between Zinifex and Oxiana. The merged company will be the world's second largest producer of zinc and a substantial producer of copper, nickel, lead, gold and silver.

Mr Michelmore said that "The addition of Avebury to the existing asset bases of the two companies is complementary, adding immediate nickel production and another set of growth options in an attractive metal market.”

Mr Michelmore said that "A majority of Allegiance directors have recommended acceptance of the offer and have either accepted, or intend to accept, in respect of all shares held by them or on their behalf. The revised price represents a premium of 55% over the closing price before our offer was announced in December and accepting shareholders will be paid within 5 business days of receipt of a valid acceptance.”