Australian Bauxite Limited (ASX:ABZ) Completes A$3.5 Million Placement

Sydney, Mar 19, 2010 AEST (ABN Newswire) - Australian Bauxite Limited (ASX:ABZ) advises that is has completed the placement of 10 million fully paid ordinary shares (14.29% of its issued capital) at 35 cents per share to institutional and sophisticated investors, as defined under Section 708 of the Corporations Act, raising A$3.5 million before costs.

The shares were issued under ABx's 15% placement capacity as provided for under Listing Rule 7.1 to institutions and sophisticated investors introduced by State One Stock Broking Limited.

There are now 80 million shares on issue representing a market capitalisation of A$30.4 million (at 17 March 2010)

Broker Research Report

State One Stockbroking Limited has completed a comprehensive research report on the Company.

The report is available through contacting State One Stockbroking on +61-8-9288-3388. It is also available on the ABx website (http://www.australianbauxite.com.au) on the INVESTORS | BROKER COVERAGE page.

Tasmanian Highlights

- Eight (8) new exploration licence applications in Tasmania have been lodged covering an area of 1,508 km2 and containing many new discoveries of good grade bauxite in favourable settings

- Sampling has returned some of the best quality results of any bauxite areas sampled to date in the extensive Eastern Australian Bauxite Province, with the following average surface sample assay results:

- Tasmania's proud mining heritage rivals NSW and QLD and Tasmania has the advantage of very short-haul distances by rail to export ports that have capacity for increased export volumes

- The 8 new Exploration Licence Applications meet the rigorous corporate selection criteria, namely; good quality bauxite; near infrastructure including rail, ports, power, water & industrial centres; and, free of socio-environmental and native title land constraints.

For the complete Australian Bauxite Announcement, please click the link below:

http://www.abnnewswire.net/media/en/docs/62469-ASX-ABZ-587119.pdf

About ABx Group Limited

ABx Group Limited (ABx) (ASX:ABX) is a uniquely positioned Australian company delivering materials for a cleaner future.

The three priority projects are:

- Heavy rare earths: Supplying light and heavy rare earths from Tasmania into Western supply chains

o Processing Options Analysis conducted in partnership with external experts

- Clean fluorine chemical production: Producing industrial chemicals from aluminium smelter by-product (ALCORE)

o Continuous pilot plant under construction in Bell Bay, Tasmania

- Near-term bauxite production: Mining bauxite resources for the aluminium, cement and fertiliser industries

o Agreements executed with Good Importing International for bauxite projects in Queensland and New South Wales, and $2.7 million initial payment has been received

o Approvals well advanced for DL130 bauxite project in northern Tasmania

ABx endorses best practices on agricultural land and strives to leave land and environment better than we find it. We only operate where welcomed.

   

Contact

Mr Ian Levy Chief Executive Officer Australian Bauxite Limited Tel: +61-2-9251-7177