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BAUXITE – ABx and Noble in alliance

ABx4 Pty Ltd, a wholly-owned subsidiary of Australian Bauxite (ABx), has concluded a binding term sheet with Noble Resources International granting Noble the exclusive global marketing rights in respect to the company’s Tasmanian bauxite project. This agreement is in consideration for Noble agreeing to enter into the loan facility and supportive marketing offtake agreements.

Noble will provide Aus$6 million project finance, supported by an Aus$2 million stand-by facility if required to expand the operations. It will provide marketing and supply chain management services for 50% of the production on an open book basis. Noble will offtake the balance 50% as principal for the first four years to support product market entry and project start-up.

The $6 million and $2 million loan facilities are to each be repaid within two years from their first drawdown dates. It is anticipated that Aus$1 million will be required for the first drawn-down by December 2014 when the project is planned to commence.

ABx4 and Noble are to complete long form agreements consisting of a loan facility, marketing agreement, marketing royalty deed and Noble offtake agreement. The agreement applies to all Australian Bauxite’s Tasmanian projects with its other projects in Queensland and New South Wales excluded.

Noble Resources International director Will Randall says, “This strategic alliance will accelerate ABx’s entry into the current strong bauxite market by providing finance and access to Noble’s global marketing network. We look forward to being involved in the branding of the low SiO2 ABx bauxite products, maximizing value for shareholders and supporting the Tasmanian economy over the medium term.”

ABx CEO Ian Levy says, “It is an ideal outcome for shareholders. Noble has a proven track record in helping independent miners in Australia. Noble provides the funding, supportive offtake and marketing alliance that we wanted to rapidly enter the bauxite market. ABx has the same market outlook as Noble and has the flexibility to exploit market niches and grow stronger every year. We look forward to a long, mutually beneficial relationship with Noble.

“We are grateful for the support from investors and Tasmanian stakeholders. It’s time for us to deliver

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