REX Approved is NOT Approved!

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The HILLSIDE MINING LEASE PROPOSAL HAS NOT BEEN APPROVED

You may have seen the attached article that appeared in the Advertiser (6th
March 2014).

In it, the company claims that the mine “was now fully approved apart from
the mining lease”.

This is a strange claim to make, since no mining development can proceed at
Hillside until Rex get mining lease approval from Government.

And even if that happens, there are still many hurdles Rex still have to
jump over before actual mining can commence.

Rex still have to

o    Lock in investor funding for the development.

The recently announced Early Contractor Involvement (EIC) agreement with
Hyundai-AMEC ECI is for Early Contractor Involvement (ASX and Media Release
9 Jan 2014;  ASX code RXM, Rex Minerals).   Under this EIC, Hyundai- AMEC
will produce an execution strategy and schedule for the project, and a final
price for the main Engineeering, Procurement and Construction Contract
(EPC).  No agreement has yet been signed for the funding of the actual
construction work at Hillside –  ie for the Engineering, Procurement and
Construction contract..

o    Purchase or lease five farms which sit within the proposed Hillside
mine footprint and lease land for the Hillside to Ardrosssan pipeline
corridor.

Without access to this land, the mine cannot proceed

So far, this has not happened.

o    Complete their bankable feasibility study and obtain a Life-of-Mine
Operational Plan – the Program for Environment Protection and rehabilitation
(PEPR)

o    Win community support for the proposed mine. At present, Rex does not
have a social licence to operate.  This is evident from the 200+ negative
submissions received  by DMITRE during the public consultation phase for the
Mining Lease Proposal.  Groups which have refused to endorse the mine
proposal include the YPDC, Rex Minerals’ Community Consultation Group, the
Ardrossan Progress Association, Grain Producers SA, the Conservation
Foundation of SA and your own YPLOG.

So don’t be concerned by articles such as the attached.

The Hillside mine is nowhere near “fully approved”.

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