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Friday 12 May, 2006

Union Resources Ltd

Project Update

Union Resources Limited
12 May 2006

Mehdiabad Zinc Project Update

SYDNEY and LONDON: 15 May 2006 - The Board of Directors of Union Resources
Limited ('Union' or the 'Company') is pleased to announce that it is taking
immediate steps to progress the world class Mehdiabad zinc, lead and silver
project (the 'Mehdiabad Project') from the exploration and feasibility phases to
the more advanced phases of project financing and development.

Union has appointed Societe Generale Corporate & Investment Banking ('Societe
Generale') as its financial adviser in relation to the debt and equity financing
of the Mehdiabad Project.

The Mehdiabad Project represents one of, if not, the largest undeveloped zinc
resources in the world. Union believes that the appointment of Societe Generale
is a major step forward in raising the required finance for this very
significant low grade, complex ore body which will result in the Mehdiabad Zinc
Company becoming a major zinc producer, with operating costs in the lowest
quartile of world production.

To prepare for this significant future growth the Company recognises the need to
strengthen the management team in order to complete the task of building and
operating a world class mine and zinc processing plant and industrial complex in
Mehdiabad.  Therefore Union, with the support of the current management, intends
in due course to make a number of senior executive appointments to ensure Union
is successful in its aim of developing the Mehdiabad Project and becoming a
major zinc producer.

Union is also planning to re-locate its operational head quarters to either
Europe or the Middle East to be nearer to the capital markets and potential
sources of finance for this project.

For further information

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

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

Bankside Consultants (Tel: 020 7367 8888)
Keith Irons
Simon Rothschild

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