Midwest rejects Sinosteel proposal

The Directors of Midwest Corporation Limited advises shareholders of the current status of Sinosteel Corporation’s (Sinosteel) Proposal.

On 7 December 2007, Midwest advised it had received a proposal from Sinosteel to acquire all of the outstanding shares in Midwest for $5.60 cash per share. The Proposal was incomplete, non-binding, and subject to due diligence and a number of other conditions.

Midwest has not been able to agree terms with Sinosteel. After careful deliberation and advice from financial and legal advisors, the Board has unanimously formed the view that an offer at $5.60 per share would undervalue the Company and its prospects. The Board will remain focused on delivering this value in the near future through a range of means including negotiations on the intrinsic value and off take agreements for the Weld Range project with Sinosteel.

Midwest continues to advance exploration and pre-development activities across five projects. Since the announcement of Sinosteel’s Proposal, Midwest has achieved an initial mineral resource estimate at Jack Hills, significant results at its Robinson Range project, a 16.6 per cent resource upgrade at Weld Range, commencement of an accelerated drilling program at Weld Range, and is on track to complete the Weld Range Pre-Feasibility Study by September 2008.

Following yesterday’s announcement that Vale has agreed to a 65% increase in 2008 iron ore contract price with Japanese and Korean steel mills, Directors continue to remain very positive about the iron ore market, Midwest’s prospects, and the ability to develop Midwest into a diversified iron-ore producer in the Mid-West region of Western