Sydney, Oct 26, 2007 (ABN Newswire) - Activity during the September 2007 quarter saw the completion of two key Company milestones. The first was the exercising of the Balla Balla purchase agreement which gives 100% ownership of the project to the Company, and the second was the completion of the bankable feasibility study ("BFS") for the development of a 6 million tonnes per annum ("tpa") iron ore concentrate project at Balla Balla.

Key appointments were made to the Aurox board of directors and management staff which will accelerate Balla Balla to operational status with additional support coming via the delivery of the $102 million in placement funds.

A new agreement was signed with current customer and shareholder RockCheck Steel Group Co. Ltd ("RockCheck Steel") which underpins an annual production increase at Balla Balla from 6 to 10 million tonnes within 5 years of commissioning operations.

The Company is also very encouraged by the early drilling success at its 100% owned Yalgoo iron ore project. Results from the first pass shallow RC drilling programme has produced wide intercepts of iron bearing host rocks returning iron grades that are typical of most other magnetite projects being developed in the mid-west region of the State.

Additional Highlights

- Aurox finalises 100% Balla Balla purchase

- Bankable Feasibility Study for 6M tonnes operation completed

- Aurox signs revised sales agreement, annual deliveries to grow to 10 million tonnes in Year 5

- Yalgoo RC drilling results confirm iron ore potential

- Directors and key personnel appointed

Please view the entire release at:
http://www.abnnewswire.net/publicdocs/aurox20071025.pdf