Atlas acquires iron ore rights

Atlas Iron Limited has entered into an agreement to acquire the iron ore rights to 10 Pilbara tenements from Talison Minerals Pty Ltd (Talison).

Summary of the Agreement

1. AGO acquires 100% of the Fe rights in exchange for payment of $4,000,000 to Talison in AGO shares upon execution of a formal agreement, which needs to be executed by 30 June 2008 or such later date agreed by both parties.

2. Talison retains rights to other minerals and is entitled to a 0.5% Revenue Based Royalty in the event that Atlas develops an iron ore resource in excess of 5MT.

The tenements are between 75 and 160 kilometres from Port Hedland, less than 60 kilometres from the FMG and BHPB railways and less than 60 kilometres from the Great Northern Highway.

Some of these tenements adjoin the company’s Abydos project.

This acquisition adds to Atlas’ Pilbara interests and provides us with the opportunity to apply our iron ore exploration expertise on an additional 10 tenements in a world class iron ore province, said Atlas Managing Director, David Flanagan.

These tenements are very prospective for iron ore and we look forward to doing a thorough examination of the iron ore potential on these tenements, he added