Sydney, Oct 8, 2007 (ABN Newswire) - Aurox Resources Limited ("Aurox") (ASX: AXO) announces the completion of its Bankable Feasibility Study ("BFS") for the annual production and transport of 6 million tonnes of magnetite concentrate from its wholly owned Balla Balla project. The headline projections set out below are derived from financial modelling using the new BFS data as well as recent iron ore fines price forecasts and foreign exchange predictions.

- Enterprise value A$1.5 billion

- Annual revenue A$418 million

- Annual EBITDA A$216 million

- Total capital costs A$603 million

- Total operating costs A$30.40 per tonne concentrate

In March of this year Aurox announced it had signed a 15 year 3 million tonnes per annum ("tpa") sales agreements with Chinese steel-vanadium producer Chengde Iron & Steel Company Ltd. In July 2007 Aurox announced it had completed a BFS for the production of 3 million tonnes of iron concentrate from its 100% owned Balla Balla iron ore project. Also in July Aurox announced the signing of a second 3 million tpa contract with RockCheck Steel Co. Ltd. and its intention to upgrade the 3 million tpa BFS to reflect a 6 million tpa operation. Last week study manager Lycopodium Engineering and associated industry consultants delivered the larger tonnage report containing the components required to forecast key project economics associated with a 6 million tpa Balla Balla magnetite concentrate operation. The latest financial analysis predicts strong project economics as presented in the summary table below.


FINANCIAL FORECASTS
NEW BFS & RECENT ECONONIC DATA

AREA                     TOTALS
Ore reserves             104Mt @ 45.7% Fe, 0.63% V2O5
Ore mining               10 million tonnes per annum
Project life             12 Years
Concentrate production 
(57% Fe, 1% V2O5)        6 million tonnes per annum
Total cash operating 
costs                    A$ 30.40 per tonne concentrate
Capitals cost all 
inclusive                A$ 603.4 million
Revenue A$               418 million per annum
Earnings Before 
Interest, Tax, 
Depreciation and
Amortisation ("EBITDA")  A$ 216 million per annum
Project Enterprise 
Value @ 7x EBITDA        A$ 1.5 billion
Project NPV              A$ 523 million
Project IRR              21% pa

Revenue assumptions include:

1) Iron Ore Sales Price: Independent Market Study - 27 September 2007

2) A$ : $US Foreign exchange: 80 cents flat rate over 12 year project life Applying an average iron ore sales price of US107.5c/dmtu and an average unit cash operating cost of AUD30.40/t, the Project generates a healthy operating margin making the Project robust and able to withstand movements in key economic variables. It should be noted that on the 4th of October 2007 Aurox announced the signing of a revised contract which increases the annual production and sales of iron concentrate from 6 to 10 million tonnes in the 5th year of operations. The above figures do not account for the extra revenue and production cost savings from economies of scale due to this increase.