Adelaide, Australia 16 July 2012: International diversified resource company Astra Resources (FWB Code: 9AR) has signed

d a Letter of Intent (LOI) for the purchase of iron ore in respect of its Philippine iron sands project. The agreement, signed between Kunming Gongxin Trading Ltd (KGT) and Astra Resources, outlines KGTs intent to purchase 50,000 tonnes of iron ore a month, for a period of 12 months, upon receiving an SGS report confirming the grade of iron ore held within the project area. Astra CEO DR Jaydeep Biswas says that once the SGS report has been received, a Memorandum of Understanding will be signed to confirm the off take agreement. As soon as full operation starts, which is slated for the end of 2012, an off take agreement will be prepared and signed between a special purpose vehicle owned by Astra and KGT, Dr Biswas says. The Babuyan Channel Iron Sand Lode in the province of Cagayan, in the north eastern part of Luzon in the Philippines, is estimated to contain more than 31.3 billion metric tonnes (BMT) in the Mineral Production Sharing Agreement Areas (MPSA) and Phase 1 of Astras mining tenement holds onl y a fraction of the Lode.

Commencement of the first phase of the project is pursuant to a Memorandum of Agreement (MOA) between Astras Joint Venture entity and the Provincial Government of Cagayan. The MOA was ratified by the Provincial Board on May 4, 2012. Astra maintains a supermajority interest in its Philippine Joint Venture entity, Cagayan River Astra Philippines, Inc. (Cagayan)

Astra Managing Director Silvana De Cianni says the MOA grants Cagayan River Astra Philippines Inc. the authority to dredge, mine, extract and utilise quarry resources, sand particles and other materials of commercial value, such as magnetite iron sands, from the Cagayan River Delta.

The authority to dredge the assigned area, a 200 metre by 12 kilometre strip along th e mouth of the Cagayan River, is stipulated to be for a period of 25 years, with production expected to reach gross sales of about 1 million tonnes per annum by 2014, Ms De Cianni says. The initial estimated resource is 135 million tonnes. Astra is in the process of acquiring additional mining areas alongside MPSA 1, 2, 3 and 4 to add to the Joint Venture, with the site to be secured from the Department of Environment and Natural Resources having inferred resources of 13 BMT. It is expected that this business partnership will significantly enhance the Economic Development Program of the mining industry sector in the Philippines. Astra Resources global portfolio includes gold interests in Southeast Asia, coal mine in Africa, iron ore in India, Norway and the Philippines, carbon efficient and commodity businesses, the production of the highstrength T-Steel technology in Hungary, clean coal technology and the provision of mining services housing in Rockhampton, Queensland and a large Agricultural focus on creating Australia as the food bowl for the Asian Region through Astra Agricultural Resources.