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Union Resources Ltd (URL)

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Friday 21 October, 2005

Union Resources Ltd

Issue of Equity

Union Resources Limited
21 October 2005

                   Union Resources ('Union' or the 'Company')

We advise that shareholders of the Company at the General Meeting held on 7th
October, 2005 approved the issue of 75,000,000 new ordinary shares in Union
Resources Limited (ASX:UCL / AIM:URL) at an issue price of 3 cents ($0.03) per
share together with the issue of a further 151,000,000 options (ASX:UCLOB / AIM:
URLB) exercisable at A$0.10 up to and including 31st March 2009 to Lundin Mining
AB ('Lundin Mining') pursuant to the Share Placement Agreement that was entered
into on 20th August 2005.

The $2,250,000 raised will be used for working capital requirements, pilot plant
test work and the completion of the Bankable Feasibility Study for the Company's
Mehdiabad Zinc Project in Iran.

We wish to give notice for the purpose of section 708A(5)(e) of the Corporations
Act 2001 that:

•    The new ordinary shares were issued without disclosure to investors under 
     Part 6D.2 of the Corporations Act 2001;

•    UCL has complied with relevant provisions of Chapter 2M of the Corporations
     Act 2001 and section 674 of the Corporations Act 2001 as they apply to the
     Company; and

•    The Company has no excluded information with the meaning of sections 
     708(A)(7) and 708(A)(8) of the Corporations Act 2001.

As the result of the issue of shares today, Lundin Mining holds 151,000,000
ordinary shares in the Company representing approximately 19.9% of the issued
share capital.  Their investment reflects a vote of confidence in the Company by
a substantial mining company.

Following the issue of these ordinary shares and listed options today, the total
number of shares in issue following admission will be 759,594,266 and the total
number of listed options exercisable at A$0.10 up to and including 31st March
2009 will be 252,430,711.  These shares and listed options will rank pari passu
with all existing ordinary shares and listed options exercisable at A$0.10 up to
and including 31st March 2009.  Application will be made shortly for the
admission of the new ordinary shares and listed options for trading on the
Australian Stock Exchange and the Alternative Investment Market of the London
Stock Exchange.

For further information contact:

Union Resources Limited (Tel: 00 61 7 3833 3833)
Rob Murdoch - Managing Director
Michael Illet

Westhouse Securities LLP (Tel: 020 7601 6100)
Bill Staple
Richard Morrison

                      This information is provided by RNS
            The company news service from the London Stock Exchange