18 July 2008

The Manager

Company Announcements Office

ASX Limited

Level 4

20 Bridge Street

Sydney NSW 2000

JOINT ASX / MEDIA RELEASE

EXTENSION OF CONTRACT: DAMANG OPEN PIT MINE

Diversified mining and services company Ausdrill Limited (ASX code: ASL) announced today that it has, through its wholly-owned subsidiary African Mining Services (Ghana) Pty Ltd (AMS), extended its contract with Gold Fields Ltd for the Damang Open Pit gold mine in Ghana to a ?Life of Mine? contract..

The new contract will extend AMS?s current six year contract for approximately three years, and possibly longer. The remaining three years of the current contract, along with a three year extension, would represent a further US$360 million in revenue to AMS.

Opened in June 1997, Damang remains one of Ghana?s largest gold mines.

AMS has been the mining contractor at Damang since the commencement of operations. By the end of the current extension, AMS will have been continuously operating at the mine for approximately 17 years with total revenues exceeding US$750 million.

Ausdrill Managing Director, Mr Ron Sayers, said that the Damang contract extension reflects Ausdrill?s strategy of establishing long-term relationships with blue chip clients for major mining operations.

?This extension again highlights the significant opportunities for Ausdrill in Africa in the next 18 months,? Mr Sayers said.

?As we noted in our Target?s Statement and again earlier this week, Ausdrill has identified approximately $2.9 billion of work for tender (including the Damang extension) in Africa, including $2.5 billion for clients with whom AMS has existing relationships. This is likely to result in significantly increased revenue.?

Shareholders who have any questions concerning Macmahon?s Offer can call Ausdrill?s Shareholder Information Line on 1800 104 758 or from outside Australia on +61 2 8268 3691.

For further information, contact

Caroline de Mori

Purple Communications

Tel. 0418 919 064

***

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