Magnetic Resources (ASX:MAU) To Raise A$972k Via Share Placement To Fund Uranium And Iron Ore Prospects

Perth, Oct 23, 2009 AEST (ABN Newswire) - Magnetic Resources (ASX:MAU) are pleased to announce that the company has reached agreement with a combination of sophisticated and professional investors to place 5,895,000 fully paid shares at an issue price of A$0.165 per fully paid share.

Following the placement, Magnetic will have 51,086,253 fully paid shares and 18,945,572 contributing shares on issue and cash and liquid investments of A$1.4 million after payment of raising costs. An Appendix 3B New Issue announcement will be released after the new fully paid shares have been issued and application will be made for their quotation.

The funds raised will be used to advance exploration on Magnetic's uranium and iron ore prospects in the southern Yilgarn region of WA. In particular Magnetic is planning to drill its main uranium target at Seabrook near Southern Cross and sample up to five other uranium targets identified on the project area. In addition, Magnetic is planning an RC drilling programme to test its Jubuk magnetite prospect near Corrigin where significant widths of coarse grained magnetite banded formations have been identified over a 1.4km strike length within a broad magnetic anomalous zone more than 30km in length.

Contact

George Sakalidis Managing Director Tel: +61-8-9226-1777 Mob: +61-411-640-337 Email: george@magres.com.au Roger Thomson Technical Director Tel: +61-8-9226-1777 Mob: +61-419-969-183 Email roger@magres.com.au