Emergent Resources Limited (ASX:EMG) Due Diligence Successfully Completed For A$200 Million CMIC JV For Development Of Beyondie Iron Project

Perth, Oct 15, 2009 AEST (ABN Newswire) - Emergent Resources Limited (ASX:EMG) is pleased to announce that Chinese State Owned Enterprise (SOE) China Metallurgical Investment Co Ltd (CMIC) has successfully completed its Due Diligence on its proposed Development Joint Venture for Emergent's Beyondie Iron Project in Western Australia's Mid-West Iron region.

On July 3, 2009, Emergent announced that it had entered into a commercial in-confidence nonbinding Memorandum of Understanding (MOU) with CMIC for the development of the Beyondie Iron Project, subject to the satisfactory completion of due diligence and completion contracts, to achieve the commencement of mining operations with an initial targeted production of 3Mtpa of magnetite concentrate.

The MOU provided for the establishment of a 50:50 Development Joint Venture, the provision of A$200 million funding for the project by CMIC, and a placement to CMIC of 8,553,971 shares at A$0.45 per share (and a 1 for 2 option entitlement of 4,276,986 options at A$0.27 per share, exercisable at A$0.20 on or before September 30, 2010) to raise around A$5 million and give CMIC an approximate 15% holding in listed Emergent Resources Limited.

Emergent and its legal representatives will now meet with CMIC and its legal representatives in Beijing next week to further the formal contract process to establish the Beyondie 50/50 Development Joint Venture.

Emergent will seek shareholder approval for the placement of shares and options to CMIC under the terms of the MOU.

Emergent Managing Director Garry Hemming said: "We are delighted that China Metallurgical Investment Co Ltd has successfully completed its due diligence process and we can now work toward establishing a formal Development Joint Venture with CMIC. They are a partner of the highest quality and we look forward to working with them to develop the Beyondie Iron Project to its full potential as a significant high grade magnetite concentrate producer."

About the Beyondie Iron Project

The Beyondie Project is located immediately adjacent to the Great Northern Highway and Goldfields Gas Pipeline in the northern part of WA's mid-west iron ore precinct, and potential shared rail and port infrastructure developments for the project are in progress.

The project is the subject of agreements with De Grey Mining Limited whereby Emergent is to gain 100% ownership of the Iron ore, Manganese and vanadium rights.

Beyondie has a JORC Inferred Resource of 127Mt @ 28.15% Fe (confirmed from an 11km portion of the project's total known 60km strike length) and a Target Mineralisation of a further 500-600Mt @ 25-30% Fe reported by the Company's independent geologists. (Refer ASX announcements 14 July 2009).

The Company is currently completing its next phase of drilling at Beyondie, which is focused on upgrading the Inferred Resource and Target Mineralisation to 1 billion tonnes of continuing comparable grade iron to that already reported, and assay results are expected to be available by the end of October, 2009.

Metallurgical test work to date has shown the potential for the project to produce a high grade magnetite concentrate of +68%Fe, with very low impurities (aluminium, titanium, phosphorous and sulphur). Emergent plan to develop the Beyondie Project into a long term, large scale, high grade magnetite concentrate mining operation.

The Target Mineralisation was based on geological modelling from drilling completed to date and was determined as part of the Independent Mineral Resource Estimate at Beyondie, and helps confirm the large scale potential of the project.

The Target Mineralisation tonnage and grade is conceptual in nature and there has been insufficient exploration at this stage to define an increased Mineral Resource and it is uncertain if further exploration will result in the determination of an increased mineral resource.

Contact

Garry Hemming Managing Director Emergent Resources Mob: +61-419-835-757 Email: ghem@westnet.com.au Website: www.emergentresources.com.au