Please see correction of earlier release.
Union Resources Limited
ANNUAL GENERAL MEETING - CHAIRMAN'S ADDRESS
Please find below the address to be delivered by the Company's Chairman of
Directors at today's Annual General Meeting.
The Managing Director's presentation concerning the Company's Sandpiper
Namibian Phosphate Project given at the Annual General Meeting can be found on
the Company's website www.unionresources.com.au.
UNION RESOURCES LIMITED
Australia: Union Resources Limited
Dr Frank Reid - Managing Director
Phone: +61 07 3833 3833
London: Hanson Westhouse Limited
Bill Staple or Martin Davison
0207 7601 6100
Simon Rothschild / Louise Mason
0207 367 8888
UNION RESOURCES LIMITED
Annual General Meeting 2008
Ladies and Gentlemen,
In keeping with many companies and in particular junior exploration companies,
your company has been faced with challenges outside of its control which have
not been experienced for many years in the global markets.
As is the standard for the majority of junior exploration/development focused
companies, Union went into the current financial year fully aware that it had
to raise funds during the year to advance its project in Iran, find additional
projects, and significantly advance them to diversify the risk faced with Iran.
In June 2008, the Company announced that it had secured control of a very
promising phosphate deposit in Namibia (the "Sandpiper Project") and in October
2008 merged the Sandpiper Project with additional phosphate interests held by
Bonaparte Diamond Mines NL and Tungeni Investments which are also in Namibia.
During the course of this meeting, Dr Reid, the company's managing director,
will give a presentation on the merged joint venture. The rational for this
merger was to accelerate the development of the combined projects with a view
to creating a significantly stronger project than each of Union or Bonaparte
could hope to achieve individually.
While successful in August and September 2007 in raising AUD 2.4 million, the
increased political tensions between Iran and the West and the declining global
markets have made raising further funds since then extremely difficult. The
company in late October 2008 announced a rights issue to raise AUD 2 million
specifically for the Sandpiper Project. In addition to the rights issue, your
Board is currently exploring a number of alternatives to finance the Sandpiper
However, deteriorating market conditions for all companies and in particular,
junior explorers, is making the rights issue difficult to successfully
Despite significant progress in resolving the issues the Company faces in Iran
and the securing of the Sandpiper Project in Namibia, the performance of the
Company's share price has been extremely disappointing.
The continuing deterioration of the Company's share price in the face of the
global Market problems and in particular global commodity prices has resulted
in an unprecedented liquidity freeze which has made fundraising from
traditional methods near obsolete. The Board is currently pursuing a series of
alternatives to resolve this.
In the absence of a successful fund raising via the rights issue or the
securing of alternative financing the Company is facing significant problems
and the alternative may be more dilutive to existing shareholders.
Your board therefore continues to consider alternative proposals to generate
value from the Company's assets. The fundamental potential of the Company's
assets and in particular the Sandpiper Project remains strong despite market
conditions. It will be the Company's ability to continue to demonstrate this
value by further development and exploration of the Sandpiper Project while
resolving the problems in Iran that will lead to the long term success of the
Company. For this reason I urge all Shareholders to support the current rights
I thank Shareholders for their support in this current trying environment and
look forward to describing a more positive report on the Company in 2009.