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Additional Information

Market:	ASX
Sector:	Non Ferrous Metals
EPIC:	AXO

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Aurox Resources

Aurox Resources (ASX:AXO) is edging closer to production at its 100% owned Balla Balla magnetite iron ore project in the Pilbara, Western Australia. The Balla Balla iron processing plant is designed to commence at 6 million tonnes per annum (Mtpa) concentrate production with a simple, uninterrupted upgrade to 10 Mtpa. Delivery of first concentrate to port is scheduled for 2010. The Bankable Feasibility Study (Sept 2007) shows Balla Balla has the potential to be Asutralia's lowest cost magnetite producer. Two 15 year sales off-take contracts for 100% concentrate production are in place with large Chinese steel companies.

Aurox's Balla Balla iron ore reserves rise 34%

Monday, November 10, 2008 by Proactive Investors

Pilbara iron ore developer Aurox Resources Limited (ASX: AXO) has announced a 34 percent increase to its Balla Balla Ore Reserve estimate. Aurox has increased the Balla Balla ore reserves from 155 to 207 million tonnes with over 87% in the Proved Reserve category.

Balla Balla ore will be processed into a vanadium-rich magnetite concentrate which Aurox customers will use to manufacture both steel and vanadium products. Aurox holds binding 15 year off-take contracts secured with Chengde Iron & Steel (wholly owned by China’s largest steel company Hebei Iron & Steel Group), and RockCheck Iron & Steel which is located on the China coast and one of the few independent steel mills still operating at full capacity.

Aurox's customers will purchase Balla Balla concentrate at the full Hamersley Fines Price as they are receiving the vanadium free of charge. This sets the Aurox off-take agreements apart from those of other Australian iron ore producers as the vanadium in Aurox's product is worth more to our customers than the iron, the company said.

Major shareholder purchases

Over the past 30 days RockCheck Iron & Steel has lodged increased substantial shareholder notices with Aurox. RockCheck has increased its shareholding in Aurox from 9% to 13.7% via on market purchases.

Strong debt funding interest

Aurox has received expressions of interest from twelve banks in relation to proposed debt funding for the Balla Balla project, despite the difficult nature of debt markets. Aurox has selected a syndicate comprising five banks (Australian and international) in relation to project finance facilities. Bank due diligence commenced with a site visit during September.

Cash reserves for Aurox were approximately $31.8 million at the end of the September 2008 quarter.

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