Iron Road Limited (ASX:IRD) Institutional Capital Raising Of A$6.1 Million

Sydney, Mar 16, 2010 AEST (ABN Newswire) - Iron Road Limited (ASX:IRD) today announced it has placed 9,623,928 shares at a price of A$0.64 per share, raising total funds of A$6.1M. The shares were predominantly placed to existing institutional investors of Iron Road and new North American based institutional investors. The shares have been issued pursuant to ASX listing rule 7.1.

Highlights

- A$6.1 million raised before costs through 15% placement priced at A$0.64 per share

- Iron Road welcomes two US based institutional investors to the register

- Cornerstone investor The Sentient Group maintains investment

- Proceeds from the raising to fund exploration at the Gawler Iron Project and Resource expansion at Iron Road's 100% owned Central Eyre Iron Project

Iron Road Managing Director, Andrew Stocks, said that the funds raised would primarily be used to complete the company's exploration programme this year.

"We have an aggressive and exciting few months ahead on the exploration front with an ongoing resource expansion drill programme underway at the Central Eyre Iron Project, aimed at meeting our corporate goal of increasing inferred resources of iron ore up to 500Mt in 2010," said Mr Stocks.

"Drilling is also about to commence at the complementary Gawler project, which offers Iron Road the opportunity to potentially develop a direct ship iron ore project, of a similar style to the Koolyanobbing Hematite deposit."

"I would also like to welcome the fresh North American intuitional investors to our register, as well as thank our cornerstone shareholder The Sentient Group for their continued support. I look forward to seeking to maintain the same level of support amongst our new investors as we have enjoyed with The Sentient Group."

"The strong institutional backing Iron Road enjoys from its shareholder base and our continued independence is a key strength of the Company," said Mr Stocks.

Iron Road is sufficiently funded for its planned drilling programmes. In addition to exploration expenses, funds raised will also be used to meet general working capital needs.

Contact

Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net