Monaro signs MoU with Sinosteel

Monaro Mining NL, an Australian uranium exploration and development company, plans to accelerate the development of its uranium portfolio in the Kyrgyz Republic following the signing of a Memorandum of Understanding (“MoU”) with Sinosteel Corporation (“Sinosteel”), a Chinese state-owned enterprise engaged in developing, mining and marketing natural resources worldwide.

Monaro has seven highly prospective uranium projects in the Kyrgyz Republic. Under the terms of the MoU, Sinosteel will work with Monaro to assess and potentially develop each of these projects. The initial agreement is subject, in part, to the results of Sinosteel’s due diligence investigation with respect to this transaction, and will initially cover the entire portfolio of Kyrgyz licences held by Monaro, though assessment work is expected to result in the selection of a smaller number for feasibility and development studies.

Monaro believes the joint development of these assets with Sinosteel—which has experience in international uranium transactions—will provide a number of significant benefits to the Company, including,

• Access to experienced uranium exploration and production personnel, as well as equipment to conduct such exploration and production;

• Use of lower-cost Chinese engineering and production technologies;

• Finance for ongoing exploration and assessment expenditure; and

• Agreements to purchase uranium production on commercial terms.

The Chairman Mr Warwick Grigor said that we are very pleased to have entered into a Memorandum of Understanding with Sinosteel. Strategically and logistically it makes great sense to deal with such a strong Chinese organization with considerable experience in the uranium industry. We look forward to a mutually beneficial relationship being forged that will hopefully, in due course, extend to co-operation on other Monaro uranium assets.