Australian Bauxite Limited (ASX:ABZ) Completes A$6 Million Placement To Fund Its Current Exploration and Development Programs

Sydney, Aug 23, 2010 AEST (ABN Newswire) - Australian Bauxite Limited (ASX:ABZ) advises that is has completed a placement of 13.50 million fully paid ordinary shares (15.77% of its issued capital) at 45 cents per share to sophisticated, eligible and/or professional investors, as defined under Section 708 of the Corporations Act, raising A$6,075,000 before costs.

Following settlement on or before 27 August, ABx will have cash reserves in excess of A$10 million to fund its current exploration and development programs.

The shares are to be issued in accordance with a resolution passed by shareholders at the Company's Annual General Meeting on 28 May 2010.

State One Stock Broking Limited facilitated the placement with strong participation by institutional funds. ABx will release an updated top twenty shareholders as soon as practicable.

ABx will continue its high rate of exploration activity for the remainder of 2010, including the completion of 1,000 holes, and, as a result of this capital raising, increasing the exploration rate to 1,400 holes in 2011. By the end of 2010, ABx expects to complete first pass drilling on all of its granted tenements in Queensland, NSW & Tasmania, and complete prioritisation of its projects.

Initial Commercial Presentations

ABx plans to present initial results from several bauxite projects to potential customers and/or partners, commencing in September. Opportunities for project advancements may arise from these initial presentations but the detailed review of several projects will also help ABx to identify its projects with the highest potential for early development and production.

About ABx Group Limited

ABx Group Limited (ABx) (ASX:ABX) is a uniquely positioned Australian company delivering materials for a cleaner future.

The three priority projects are:

- Heavy rare earths: Supplying light and heavy rare earths from Tasmania into Western supply chains

o Processing Options Analysis conducted in partnership with external experts

- Clean fluorine chemical production: Producing industrial chemicals from aluminium smelter by-product (ALCORE)

o Continuous pilot plant under construction in Bell Bay, Tasmania

- Near-term bauxite production: Mining bauxite resources for the aluminium, cement and fertiliser industries

o Agreements executed with Good Importing International for bauxite projects in Queensland and New South Wales, and $2.7 million initial payment has been received

o Approvals well advanced for DL130 bauxite project in northern Tasmania

ABx endorses best practices on agricultural land and strives to leave land and environment better than we find it. We only operate where welcomed.

   

Contact

Investor Relations Henry Kinstlinger Australian Bauxite Limited Tel: +61-2-9251-7177 www.australianbauxite.com.au