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Tuesday 24 October, 2006

Union Resources LTD

Re: Scoping Study


                            Union Resources Limited                            

                              ABN 40 002 118 872                               

                                 Scoping Study                                 

Union Resources Limited ("Union" or the "Company") advises that the Company has
now, in association with its financial advisors, completed a review of the
potential to finance the "Optimum Case" development of the Mehdiabad Zinc
Project in Iran, which is one of the largest untapped zinc deposits in the
world.

The "Optimum Case" development, recommended in the Feasibility Study Report
received in May 2006 from Aker Kvaerner Australia ("AKAU"), involves the
construction of a major open cut mine and a large integrated plant capable of
processing sufficient oxide and sulphide ore to produce up to 400,000 tonnes
per annum of zinc metal, 100,000 tonnes per annum of lead metal and 7 million
ounces per annum of silver, over a mine life of 20-40 years.

AKAU estimated that the total capital cost of this "Optimum Case" development
will be in the order US$1.6 billion.

The attractiveness of the "Optimum Case" development is the indicative long
term operation cost of only US$290 per tonne of zinc, after lead/silver
credits.

However, the review has indicated that the capital cost required could be
difficult to finance at this time in Iran.

Therefore, the Company is considering whether the best way to develop the
Project is to stage the development, thereby reducing the initial capital cost
of the Project.

Towards this objective, Union has commenced a scoping study into a number of
potential first stage options for the development of the Project.

The objective of the scoping study is to identify the option that offers the
best financial return, and at the same time would substantially reduce capital
costs.

Union is mindful that the option chosen should also maintain the longer term
economic viability of the Mehdiabad Zinc Project, and not negatively impact the
long term potential of this major p roject.

The scoping study will involve a number of consultants, and Union will advise
on the progress of the studies as they proceed.


END

For further information:

Union Resources Limited                   (Tel: 00 61 7 3833 3833)
Rob Murdoch - Managing Director
www.unionresources.com.au

Westhouse Securities LLP                  (Tel: 020 7601 6100)
Bill Staple
Martin Davison

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