Union Resources Limited
Mehdiabad Project Update
Union Resources Limited ("Union" or the "Company") wishes to advise that
negotiations are continuing with the Iranian Mines and Mining Industries
Development and Renovation Organization ("IMIDRO") over resolving the dispute
that has arisen as a consequence of the purported termination by IMIDRO on
December 5, 2006 of various agreements governing the Mehdiabad Zinc-Silver-Lead
Project in Iran ("the Project"). (The Project is carried on by Union, IMIDRO
and the company Itok GmbH through an incorporated Iranian joint venture
company, Mehdiabad Zinc Company ("MZC").
Union, which has previously met and exceeded its full funding obligations to
MZC, is pleased to advise that Iranian Government-owned IMIDRO, a 50%
shareholder in MZC, has recently invested Iranian Rials 1,000,000,000
(approximately US$103,000) to fund an Environmental Impact Assessment by
environmental consultants regarding the proposed construction of a zinc plant
for the Project.
The Board of Union is of the view that this is a sign of the increased
co-operation between the Company and IMIDRO that has been achieved since the
issuing of the purported termination notice.
UNION RESOURCES LIMITED
For further information contact:
Australia: Union Resources Limited Mr John Lemon - Company Secretary Phone: +617 3833 3833
London: Hanson Westhouse Limited Bill Staple or Martin Davison 020 7601 6100
Bankside Consultants Simon Rothschild or Louise Mason 020 7367 8888