KARARA MAGNETITE/BLUE HILLS

Gindalbie Metals announced that the Federal Government has given Commonwealth environmental approval for development of the Karara iron ore project in Western Australia to proceed.

Gindalbie Metals Limited advise that the Western Australian Minister for Environment has given final State environmental approval for development of the Karara Iron Ore Project in Western Australia to proceed. The landmark decision is a very significant milestone for Gindalbie and its joint venture partner, AnSteel, as well as the entire Mid West region. The decision clears the way for on-site construction and development of the large-scale Karara Project to proceed during the fourth Quarter of 2009. Located 225km east of Geraldton in Western Australia’s Mid West, the Karara Project will be a major integrated iron ore project producing both DSO and high-grade magnetite concentrate over several decades. With the State approval in place, a final environmental sign-off is required from the Commonwealth Government before on-site construction and development activities can proceed, and this process is expected to take approximately 30 days.

Gindalbie Metals reported that all of the key appeals lodged by the Karara Joint Venture against the Environmental Protection Authority (EPA)’s recommendations and conditions for both the hematite and magnetite phases of the Karara Iron Ore Project have been upheld by Western Australian Environment Minister. The Minister has upheld the appeal on the Terapod hematite deposit, clearing the way for it to be mined, together with the Blue Hills North hematite deposit as part of the 2.0Mtpa hematite phase of the Karara Project.