Magnetic Resources NL (ASX:MAU) Share Placement To Raise A$1.5 Million To Advance Iron Ore And Uranium Exploration

Perth, Feb 17, 2010 AEST (ABN Newswire) - Magnetic Resources NL (ASX:MAU) are pleased to announce that the company has reached agreement with a combination of sophisticated and professional investors to place 3,700,000 fully paid shares at an issue price of A$0.40 per fully paid share.

Following the placement, Magnetic will have 54,786,253 fully paid shares, 18,945,572 contributing shares and 2,100,000 options on issue with cash and liquid investments of A$2.4 million. An Appendix 3B Share Issue announcement will be released after the new fully paid shares have been issued and application made for their quotation.

The funds raised will be used to advance exploration on Magnetic's iron ore and uranium prospects in the southern Yilgarn region of WA. Magnetic is planning additional RC drilling programmes to test its extensive targets (70km) outside the recently drilled Jubuk magnetite prospect near Corrigin where significant widths of coarse grained magnetite banded iron formations have been identified in surface outcrops over a 1.4km strike length. Magnetic is currently flying a large 16,284 line km survey covering its extensive 4,100 sq km newly acquired application areas. Also Magnetic is planning to drill its promising main uranium targets at Seabrook near Southern Cross in early March.

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