SOUTHDOWN

Grange Resources announce a substantial increase in the in situ Mineral Resource at the Southdown Project (Southdown) located 90km northeast of the Port of Albany on the south coast of Western Australia. The total Mineral Resource has increased by 37% from 479 million tonnes grading 37.3% magnetite reported on September 27, 2006 to 654.4 million tonnes grading 36.5% magnetite. This increase in Mineral Resources includes the substantial conversion (51%) of Indicated Resources to Measured Resources and meets one of the key goals of the definitive feasibility study into the development of the Southdown Magnetite Project.

The Southdown joint venture adopted a more structured approach to the project development. This approach involves sections of study work being followed by significant peer review as they are completed to ensure the study is of appropriate quality. Once the peer review is complete and both Grange and Sojitz have reviewed its findings, the project may then be approved to go to the next stage.

Advised that the Environmental Protection Authority (EPA) Bulletin for its Southdown Magnetite iron ore project was released today. The Bulletin provides advice and recommendations from the EPA on the proposed development of the Southdown mine, the pipeline to the Port of Albany and the infrastructure required at the Albany Port for magnetite concentrate storage. The EPA has concluded that it is unlikely that its objectives would be compromised provided there is satisfactory implementation of its recommended conditions and procedures. The EPA has recommended approval of the project to the Minister for the Environment with those conditions and procedures. In 2008, Metso has been undertaking further extensive metallurgical test work on a 30 tonne bulk sample from the Southdown deposit. This test work was largely completed during the year and has identified the preferred processing circuit. The test work culminated in the production of approximately 4 tonnes of concentrate from a pilot plant facility in Perth. Prior to the pilot plant run final grind size bench test work was undertaken to determine the optimal grind size for the concentrate and confirmed that at a grind size of 34 microns the silica content of the concentrate could be reduced to less than 1%. Overall the bench test work produced results including 69.87% Fe .