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Murchison Metals www.mml.net.au/

Murchison Metals (ASX: MMX) has sold out of its interests in Crosslands Resources and Oakajee Port & Rail. The company now has around $223 million cash on hand.

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Murchison Metals confirms compliance with ASX at all times for Oakajee

Murchison Metals (ASX: MMX) has confirmed to the ASX that the company has at all times complied with its continuous disclosure obligations in regards to the Oakajee Port & Rail, debunking some recent media speculation about the project.

In a response to the ASX, highlighting the conjecture of the media outlets Murchison stated:

'The company’s announcement dated 22 March 2011 referred to in the ASX Letter was released in response to media speculation about the capital cost estimate for the Oakajee Project which Murchison believed had the capacity to create a false market.

'The purpose of the Announcement was to clarify that the capital cost estimate referred to in the media was speculative, and that any attempt to reliably estimate the likely final capital cost of the Oakajee Project prior to completion of a bankable feasibility study (BFS) is premature and should not be relied on by shareholders.'

Oakajee is a 50:50 joint venture between Murchison and Mitsubishi Development Pty Ltd.

Supporting the Oakajee project earlier in the month was the Environmental Protection Authority of Western Australia (EPA), which recommended the project.

The EPA determined that development of the proposed 45 million tonnes per annum Oakajee port, 24 kilometres north of Geraldton, and associated heavy-haulage railway extending 570 kilometre north-east to the Jack Hills iron ore project, could be managed to meet the EPA’s objectives.

Most importantly, the recommendation covers all land-based iron ore handling, storage and ancillary infrastructure at the proposed port, including associated rail infrastructure.

Jack Hills is owned by Crosslands, a 50:50 joint venture between Murchison and Mitsubishi, which produces a high quality product at 65% iron grade for lump and 63% iron for fines.

Murchison remains well funded, recently drawing on the US$100 million bridge finance facility announced at the end of 2010.

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