Murchison Metals Limited (ASX:MMX) Secures US$100 Million Bridge Finance Facility

Perth, Nov 19, 2010 AEST (ABN Newswire) - Murchison Metals Limited (ASX:MMX) (PINK:MUMTF) is pleased to announce it has signed a terms sheet for a US$100 million Bridge Finance Facility ("the Facility") to be provided by a fund managed by Denver based Resource Capital Funds (RCF). RCF manages resources focused private equity funds, one of which is a long term shareholder of Murchison.

The Facility will provide Murchison with the ability to draw, at Murchison's election, up to US$100 million to fund its share of expenditure to progress the Bankable Feasibility Studies (BFS) for the Jack Hills Expansion Project and Oakajee Port and Rail Infrastructure Project. The project BFSs are due for completion in the second quarter of 2011. The Facility may also be used for development activities for the projects and for working capital for Murchison.

The Facility is for a term of 12 months from first draw down with a 10% coupon rate. The Facility is subject to the completion of legal and security documentation and the satisfaction of customary conditions precedent prior to drawdown. Under the Facility Murchison will pay an establishment fee to be satisfied by the issue of 4.2m options that have an exercise price equal to 120% of the volume weighted average market price of Murchison shares over the 30 trading days prior to Murchison's acceptance. The term of the options is three years from the date of issue. Commitment fees and interest payments can be satisfied, at the Company's election, by the issue of shares or by thepayment of cash. The Company must pay a break fee equal to 2% of the total commitment of the Facility if it elects not to proceed with the Facility.

Murchison Executive Chairman Paul Kopejtka said that establishing the Facility is a significant and positive step for Murchison.

"This Facility will provide us with standby funding support to confidently progress the feasibility studies for Crosslands and OPR," said Mr Kopejtka.

"The Facility provides a robust safety buffer to Murchison's funding requirements, and provides us with significant flexibility in the timing of any drawdown."

"I am also very pleased to be furthering our relationship with RCF, which is recognised as one of the world's leading resource project investors and is one of Murchison's biggest shareholders."

RCF Partner Mason Hills said that RCF believed that both the Jack Hills Expansion Project and Oakajee infrastructure project were strong investment opportunities for its funds.

"Resource Capital Funds specialises in arranging funding for resources projects and the funds it manages have a track record of successful patient investment focussed on long term development.

Given our analysis during recent due diligence on the two projects, we are very confident in arranging this facility for Murchison. RCF is pleased to be continuing our association with the Company," said Mr Hills.

RCF Managing Partner James McClements is also a Non Executive Director of Murchison. Mr McClements did not participate in the Board's decision to approve the Facility.

Contact

Paul Kopejtka Executive Chairman Murchison Metals Ltd Tel: +61-8-9492-2600 http://www.mml.net.au