Deal to develop iron ore deposit

Date:  15th December 2009
Project: Wilgerup
Organisation: Centrex Metals
ASX: CXM
Highlight: $186 Million open cut mine development
Best contact person for contract work:  Kevin Malaxos – Chief Operating Officer 08 8232 0400

Centrex Metals has signed a deal a Chinese state owned enterprise to develop an iron ore deposit it has on South Australia’s Eyre Peninsula.

The deal is with the Wuhan Iron & Steel Corporation (WISCO) to develop the Wilgerup iron ore deposit located in the central Eyre Peninsula. WISCO will pay $186 million in exchange for 60% of the venture. Regulatory approval has been granted and the first payment was made in the September quarter 2009.

The open cut mine will be developed over the next 5-7 years and will provide opportunities in:

·        Heavy engineering

·        Construction

·        Equipment hire

·        Site catering

·        Project management

·        Sub-contracting

For more information visit:

www.centrexmetals.com.au/images/asx_releases/asx_release74.pdf

www.centrexmetals.com.au/images/community/community_project_overview.pdf