FRANCES CREEK

Territory Resources Limited advises that it has reached agreement with its financiers, the hedge book facility provider and Noble Resources Limited, for a further 6-week extension of the previously announced Tripartite Standstill Agreement (see ASX announcements dated 1 April 2009 and 2 July 2009). The company, Noble and the Bank all remain committed to finding a satisfactory, long-term solution with the delays in resolving the situation due to normal and ongoing commercial discussions between the parties.

Territory Resources reported a 112% increase in the resource estimate for its flagship Helene 6/7 Deposit, the principal source of high-grade ore at its 100%-owned Frances Creek Iron Ore Mine, located 200 km south of Darwin in the Northern Territory, Australia. The JORC-compliant Indicated and Inferred Resource has increased by 2.2 million tonnes to 4.1 million tonnes at an average grade of 59.5% Fe.

Announced results from ongoing drilling program consisting of a total of 53 holes for 4,064m. Highlights includes intersections of 47m @ 64.98% Fe from 30m, 45m @ 66.06% Fe from 39m, 33m @ 64.19% Fe from 23m and 29m @ 62.9% Fe from 97m. Drilling is continuing in and around the high-grade Helene 6/7 pit and on the highly prospective ground between the adjacent Helene 5 deposit (the other operating open pit at Frances Creek) and Helene 6/7.