Perth, Apr 23, 2008 (ABN Newswire) - Australasian Resources Ltd (Australasian)(ASX: ARH) is pleased to advise that the completion of the Feasibility Study report for its flagship Balmoral South Iron Ore Project is imminent and that Shougang has been actively supporting the Company's efforts to achieve this objective over the past month.

The Company's project representatives met with Shougang representatives in Beijing and Hong Kong and held positive discussions in relation to:

- Feasibility Study review and sign-off;

- Project execution; and

- Project commercial matters including funding.

A number of significant outcomes resulted from these meetings:

- Shougang presented its engineering and cost proposal for the pellet plant to be located in China, with significant reduction in capital and operating costs potentially available to the project.

- Shougang agreed to contribute to the completion of a Cape Preston deep water port study by CCCC First Harbor, China's largest port construction and design company as an alternative to the current trans-shipping port solution in the Feasibility Study. Mineralogy Pty Ltd, has advised the Company that it would consider a development proposal by Australasian to construct a deep water port at Cape Preston under existing government approvals.

- Shougang review of the Feasibility Study is planned to commence in May once the report has been reviewed by the Company. This will entail Shougang representatives working alongside Company representatives in Perth to identify further value-adding opportunities for the project.

- Shougang's construction arm is planning a visit to Perth to initiate discussions with local companies and government representatives in the near future to advance project execution planning.

- Shougang issued letters of support and expression of interest to current and future gas suppliers in the North West Shelf area to assist efforts to secure gas for the project.

The Company has also resumed in-fill diamond drilling at Balmoral with an aim to further increase the confidence in the Mineral Resource and Ore Reserve base.

Updates to the project's Resources and Reserves will be released in the near future once independent review and sign-off has been completed for both estimates.

The outcomes detailed above re-affirm Shougang's continuing commitment to the advancement of the Project and that key dates under existing commercial agreements remain in place.

The Project Agreement with Shougang refers to a Feasibility Notice being served on Shougang by Australasian by June 2008, in line with the original timetable for project development. Shougang may then elect to proceed by issuing a Finance Offer to the Company on or before September 2008.

About Shougang Group

Shougang Corporation is a major Chinese steelmaker that is based in Beijing and is owned by the Chinese government. Shougang Entities currently import over 20 million tonnes of iron ore into China for use in their steelmaking facilities and are in the process of developing a substantial new integrated steelmaking facility on a large site at Tangshan, on the northern China coast. Construction at Tangshan has commenced and will produce close to 10 Mt of steel a year starting in 2010.

The principal Shougang Entity that is party to the Project agreement is Shougang Holding (Hong Kong) Limited, which is 100% owned by Shougang Corporation.