11 September 2008

JOINT ASX / MEDIA RELEASE

MANAGING DIRECTOR BUYS MORE SHARES

Ausdrill Limited (ASX:ASL) notes recent media comments attributed to Macmahon CEO Mr Nick Bowen that Macmahon?s conditional takeover offer was unlikely to succeed.

Following Mr Bowen?s comments, there have been a large number of Ausdrill shares traded. Ausdrill believes that selling by hedge funds accounted for the majority of that trading in the belief that Macmahon?s offer will fail.

Ausdrill advises that its Managing Director, Mr Ron Sayers, today purchased 8.3 million shares in Ausdrill predominately from a hedge fund at a price of $2.50 per share via an on-market crossing.

Mr Sayers now holds 34.3 million Ausdrill shares or approximately 19.95% of Ausdrill. Ausdrill?s directors, together with shareholders who have stated on a ?last and final? basis that they will not accept Macmahon?s offer, now hold 33.2% of Ausdrill shares.

By comparison, Macmahon has received formal acceptances for only 0.58% of Ausdrill shares.

Ausdrill?s share price closed at $2.00 with an extremely large volume of shares traded. Ausdrill believes that selling by hedge funds accounted for the majority of that trading.

Ausdrill Chairman, Mr Terry O?Connor, said that impact of hedge fund selling on Ausdrill?s share price was likely to be only short term and that the price did not reflect Ausdrill?s recent record earnings and excellent outlook.

He noted that at a share price of $2.00 Ausdrill was trading at a multiple of 7.4x the broker consensus for FY09.

?This is significantly lower than the average multiple of 10.8x applicable to a group of Ausdrill?s peers as reflected in our recent Supplementary Target?s Statement,? Mr O?Connor said.

Mr Sayers said that his purchase reflected his belief that Ausdrill is in its best ever financial and operational shape.

?Obviously, I am a strong believer in Ausdrill, which will increase its earnings by 20% to 30% in the 2009 financial year,? Mr Sayers said.

?As our recently announced $300-plus million contract expansion with FMG and US$70 million underground production contract at the Akwaaba project in Ghana demonstrate, Ausdrill continues to capitalise on opportunities to expand our existing operations and win new work.

?Ausdrill has more than a billion dollars of committed revenue and we are building towards a position of having 4-5 years? worth of work in hand while maintaining our traditional strong margins.

?In the last 12 months, I have invested a substantial amount of cash to increase my position in Ausdrill and I believe that investment will deliver a significant return for both me and Ausdrill?s shareholders in the future.

?We look forward to continuing to grow Ausdrill as an independent company for the benefit of our shareholders,? Mr Sayers concluded.

For further information visit: www.ausdrill.com.au

Media inquiries:

Caroline de Mori

Purple Communications

0418 919 064

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