Murchison Metals Limited (ASX:MMX) Announces The West Australian Government Allocates Funding For Oakajee Port

Perth, May 21, 2010 AEST (ABN Newswire) - Murchison Metals Limited (ASX:MMX) (PINK:MUMTF) is pleased to announced that the Government of Western Australia has included funding for the development of Oakajee Port in its 2010-2011 Budget handed down yesterday by Premier and Treasurer Colin Barnett.

The Budget contains A$339 million in capital funding for Oakajee, which Mr Barnett described as part of "the development of a major new iron ore region is the State's mid-west". The funding has been allocated for the 2012-13 financial year.

The Australian Federal Government has committed to matching the WA Government funding commitment, lifting the overall funding contribution to A$678 million.

In addition, the WA Government has allocated approximately A$35 million in funding over four years across a number of agencies such as the Department of State Development and the Department of Planning to support the Oakajee development in terms of commercial and legal issues, design and engineering, and approval facilitation.

Murchison and Mitsubishi Development Pty Ltd each own 50% of Oakajee Port & Rail (OPR), developer of the mid-west port and rail infrastructure project that will serve the region's fast-growing iron ore sector.

Murchison Executive Chairman Paul Kopejtka said the State Government's Budget commitment was very welcome.

"The unswerving government support for Oakajee underlines the importance attached to this project by his Government and the enormous benefits that will flow to all stakeholders from unlocking the region's vast mineral riches," said Mr Kopejtka.

"We look forward to continuing to work closely with the WA Government to deliver this important project."

Contact

Paul Kopejtka Executive Chairman Murchison Metals Ltd Tel: +61-8-9492-2600