Online Stockmarket Trading Update

The Board of Bauxite Resources Ltd (BRL) is pleased to announce that it has today signed a Heads of Agreement with Yankuang Corporation for the joint development and ownership of an alumina  refinery in the south west of Western Australia.

An agreement will be established to explore and exploit BRL’s Darling Range South tenements for a total area of circa up 10,000 square kilometres. The costs of the exploration of this area to be shared by BRL and Yankuang 51% and 49% respectively. BRL and Yankuang will undertake all works and studies necessary to obtain a Bankable Feasibility Study (BFS) for the development of the proposed alumina refinery.

The BFS is to establish refinery grade bauxite of no less than 150 million tonnes (with a target of 300 million tonnes). Under the proposed “Alumina Refinery JV Agreement”, Yankuang will contribute 75% of the costs of the proposed alumina refinery to earn a 50% interest in the proposed refinery. BRL will receive a 25% free carried interest and will fund a further 25% to bring its interest up to 50%. Yankuang will subscribe for 19.7 million shares in BRL at a price of $0.50 per share.

The Managing Director of Bauxite Resources Ltd Mr Daniel Tenardi said today’s signing of the Heads of Agreement is a significant achievement for BRL and Yankuang after months of extensive negotiations necessary for a large project. “The proposed alumina joint venture is a significant value adding project that will create many jobs and revenue for Western Australia,”Mr Tenardi said.

www.bauxiteresources.com.au