Online Stockmarket Trading Update

Ausdrill Limited (ASL) is pleased to announce the award of the following contracts to three of  its wholly owned subsidiary companies: Ausdrill Zambia – BHP Billiton, Western Zambia; African Mining Services – Newmont, Ghana; Ausdrill Mining Services; Central Norseman Gold Corporation; Kimberley Metals Group. Ausdrill’s  contract  mining  and  exploration  business  in  East  Africa,  Ausdrill  Zambia,  has  been  successful in securing an exploration contract with BHP Billiton in Western Zambia.  The contract is  for an initial 12 month period with the option of a 12 month extension.

Ausdrill Managing Director,  Mr Ron Sayers, said “This is a key milestone for the company as it is the first contract in Zambia and leverages off the Company’s base in Tanzania, East Africa and will also utilise three new drill rigs built by Drill Rigs Australia, a wholly owned subsidiary of Ausdrill”.  African Mining Services has for the 5th consecutive year successfully renegotiated the exploration drilling contract at the Ahafo Gold Mine in Ghana, owned and operated by Newmont. This extends African  Mining  Services’  relationship  with  Newmont  at  the  Ahafo  Gold  Mine  where  African Underground  Mining  Services  (a  50/50  joint  venture  between  Ausdrill  Limited  and  Barminco Limited) is also carrying out work at the Subika underground project.

Ausdrill Mining Services (AMS) has entered into contracts with:  Central Norseman Gold Corporation Ltd in Norseman, WA.  The contract, which commenced in December 2010, will generate approximately $25.0m in revenue over 36 months.  The contract is  for  the  provision  of  equipment  hire,  maintenance  services  and  labour  hire  for  the  North Royal open pit and AMS expects to employ approximately 35 personnel. This  is  a  4  year  contract  valued  at approximately  $34.0m  for  the  hire  and  maintenance  of  mining  equipment  and  is  due  to commence in March 2011.

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Ausdrill Limited (ASL) is pleased to announce that African Underground Mining Services (AUMS), a 50/50 joint venture between Ausdrill Limited and Barminco Limited, has been successful in securing a significant quantity of new underground work in West Africa. It has received a Letter of Intent from Société des Mines de Loulo S.A (Loulo Gold Mine), 80% owned by Randgold Resources, for a US$128 million development contract at the Gara ore body in Mali over a three year period commencing April 2010. This is Ausdrill’s second major contract in Mali and AUMS’s first underground project in Country.

In addition it has commenced operations at the Subika Decline Exploration Project for Newmont. This is a contract worth approximately US$27m over 15 months. Subika is only one phase in potential underground mine development at Ahafo, Ghana. AUMS has also received a Letter of Intent from Chirano Gold Mines Ltd (Redback Mining Inc) to mobilise equipment to commence the decline at the Paboase South Underground Project in April 2010, subject to the agreement of final terms and conditions. This follows on from the successful development and production contracts awarded to AUMS at Akwaaba Deeps (Red Back Mining) in FY2009. All of these projects are indicative of the potential available to the Group in Africa that is being realised through Ausdrill’s long term experience in Africa and Barminco’s reputation as a skilled underground mining contractor.

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