ASX ANNOUNCEMENTS PLATFORM

12 May 2008

Midwest increases Weld Range Mineral Resources Direct Shipping Ore (DSO) Project to 149 mt

Iron ore producer Midwest Corporation Limited ($B!H(BMidwest$B!I(B) (ASX:MIS) is pleased to announce a 12% increase in the total estimated Mineral Resource inventory at its flagship DSO project at Weld Range.

Midwest has increased total Measured, Indicated and Inferred Mineral Resources by 15.8 million tonnes (mt) to 149.2 mt at an average grade of 58.4% Fe, using a cut off grade of 50% Fe.

The increase in total estimated Mineral Resources results from ongoing resource drilling programmes at the Weld Range DSO Project deposits leading up to the Pre-Feasibility Study (PFS), which is scheduled for completion in December 2008.

Importantly, infill drilling at Weld Range has provided a substantial increase in the confidence level of the Mineral Resource inventory, with 72% of the total estimate now reporting to the Measured and Indicated Resource categories.

Midwest Chief Executive Officer, Mr Bryan Oliver, said: $B!H(BThese results continue to support Midwest$B!G(Bs high expectations for the Weld Range and confirm the basis for our proposed expansion of hematite iron ore sales through the joint development of the Weld Range DSO Project in conjunction with Sinosteel Corporation.$B!I(B

$B!H(BWe remain on course to achieve our minimum target of 225 mt (details of which are set out in the Midwest Target$B!G(Bs Statement dated 29 April 2008) to underpin the development of Weld Range and the associated rail and port infrastructure,$B!I(B he said.

The increase in the total Measured, Indicated and Inferred Mineral Resources relates to mineralised lenses at the Madoonga and Beebyn hematite deposits, which lie within tenement TR 70/3902H under the Iron Ore (Murchison) Agreement Act (WA) 1973 (the State Agreement Act).

The previously stated estimated total Measured, Indicated and Inferred Mineral Resources of 133.4 mt at an average grade of 58.5% Fe related to the W14 lens at Madoonga, the W7 to W11 lenses at Beebyn and the W30-W31-W45 lenses at Beebyn North (which lie wholly within E51/907).

On 7 April 2008, Midwest announced an increase in the number of drill rigs to be used on its drilling programme at Weld Range, with an additional 4 drill rigs mobilising to support the existing 7 drill rigs on site. This increase in the drilling rig numbers is progressing well, with ten drilling rigs currently in operation on site.

As part of the Weld Range DSO Joint Venture studies with Sinosteel Corporation, updated geological models have been developed for the Madoonga and Beebyn hematite-goethite ore lenses generating additional Mineral Resources totalling 15.8 mt at an average grade of 57.5% Fe (using a 50% Fe cut-off grade). These large deposits have been the focus of an accelerated drilling campaign at Weld Range.

The W30, W31 and W45 lenses at Beebyn North are all 400-500m long in strike and were previously targeted by drilling to a depth of approximately 100m vertical from natural surface. Additional infill, extensional, and drilling to greater depth is planned for these lenses with the aim of upgrading the Mineral Resources at Beebyn North and to increase confidence in their JORC classification category. This work will commence during the current Quarter.

Many other substantial prospective iron ore lenses in the Weld Range tenements remain undrilled at this stage, due mainly to a focus on resource development drilling programmes required over the Madoonga and Beebyn deposits ahead of the PFS.

The most prospective of these areas are the W20 and W6 iron ore lenses located on tenement E20/641, which form part of the Hampton Hill JV. These lenses have a combined exploration target range of 35.4$B"*(B45.0 mt. Exploratory drilling campaigns are scheduled to commence at these prospects during the current Quarter. 

Midwest has scheduled substantial programmes of resource development and exploratory drilling during the remainder of 2008 within TR70/3902H and other tenements at Weld Range, including sections falling within the Hampton Hill JV areas.

Technical details of the updated Mineral Resource estimation are outlined below. These statements supersede all previous Mineral Resource estimates for the Weld Range DSO Project and are based on geological and mineralisation interpretations completed for the individual deposits up to 29 February 2008.

Midwest is also progressing potential high grade iron ore projects in proximity to Weld Range at Jack Hills and Robinson Range, as well as Koolanooka/Blue Hills and Koolanooka magnetite further south in the mid west region of Western Australia.

- End -

For further information contact:

Martin Debelle                                                                         Warrick Hazeldine

Cannings                                                                                 Purple Communications

Ph: + 61 2 9252 0622                                                             Ph: + 61 8 9485 1254

Mob: + 61 409 911 189                                                           Mob: + 61 417 944 616

Map images available from http://www.purplecom.com.au/gallery.asp

Weld Range Mineral Resource estimates

CSA Australia Pty Ltd ($B!H(BCSA$B!I(B) was engaged by Sinosteel Midwest Management Pty Ltd, the management company for the Sinosteel Midwest JV, to update Mineral Resource estimates for the high-grade Weld Range iron ore deposits. The Mineral Resource estimates are based on geological and mineralogical interpretations completed by Sinosteel Midwest Management Pty Ltd and provided to CSA using drilling and assay results up to 29 February 2008.

A summary of the classified Mineral Resource estimates is presented in Table 1 below:

*Note:              All tonnages are rounded to the nearest 100,000 tonnes

A summary of the technical details of the Mineral Resource estimation process undertaken by CSA is outlined below.

Technical Summary:

CSA were contracted by Sinosteel Midwest Management Pty Ltd to update the Mineral Resource estimates at the Weld Range DSO Project as at 29 February 2008, by compiling updated resource models for the Madoonga and Beebyn iron ore deposits. No new Mineral Resource update of the Madoonga or Beebyn deposits has been completed since the ASX Announcement by Midwest Corporation Ltd on the 4^th September 2007.

Sinosteel Midwest Management Pty Ltd supplied all geological and sampling data and provided technical and geological support to CSA during the resource update modelling processes for the Madoonga and Beebyn deposits. The resource models for the deposits were updated by CSA and incorporate:

·         geological mapping data;

·         RC and diamond drilling data;

·         geological interpretation;

·         additional in-situ dry bulk density measurements; and

·         resource classification based on geological confidence from surface mapping, drill hole spacing, data QAQC integrity and variography.

The Mineral Resource estimates comply with recommendations from the Australasian Code for Reporting of Mineral Resources and Ore Reserves prepared in 2004 by the Joint Ore Reserves Committee (JORC).

The updated March 2008 Quarter Mineral Resource estimates were based on the following parameters:

·         Resources of DSO iron mineralisation have been defined at the Madoonga (W14) and Beebyn (W7 to W11) iron ore deposits. The mineralisation and geological characteristics are defined by mineralised envelopes based on a 50% Fe mineralisation cut off.

·         The primary analytical data used to model the geology and estimate the Mineral Resources was generated from RC and diamond drilling programs undertaken by Sinosteel Midwest Management Pty Ltd between June 2006 and February 2008. Historical drilling has been excluded.  

·         Estimates for density were used in the Mineral Resource modelling and are in line with values reported by Sinosteel Midwest Management Pty Ltd from similar hematite-goethite lodes at the Weld Range Project.

·         Ordinary Kriging estimation was selected as the most appropriate method for grade estimation for the main Beebyn and Madoonga deposits. Inverse Distance estimation was used for the Beebyn North deposits. Resource classification was based on $B!H(Bthe level of confidence$B!I(B of the geological interpretation, tonnage factors, geological confidence represented by drill spacing and Kriging $B!H(BSlope of Regression$B!I(B analysis.

Competent Person:

The information in the report to which the statement is attached that relates to Mineral Resources is based on information compiled by Mr Malcolm Titley who is a Member of The Australasian Institute of Mining & Metallurgy.

Mr Malcolm Titley (MAusIMM) is a Principal of CSA and is responsible for the updated estimation of the Mineral Resources for the Weld Range deposits. Mr Titley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the $B!H(BAustralian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves$B!I(B. Mr. Titley consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

***

The new Spam Act commenced on 10 April 2004. This Act is aimed at reducing the amount of unauthorised emails you receive.  You have been receiving e-mails containing information and news releases from us on behalf of our clients because you are an important contact of Purple Communications, a boutique stakeholder communications consultancy.   If you do not wish to receive such emails from Purple, please click mailto: purple@purplecom.com.au subject=UNSUBSCRIBE or reply to this email and put UNSUBSCRIBE in the subject line and we will not email you again.

 If you do not reply, we will continue sending you relevant news and information via email. However, all future emails will allow you to unsubscribe.

Issued by

Purple Communications

Level 3, 28 Kings Park Road, WEST PERTH WA 6005

Ph: 08 9485 1254     Fax: 08 6263 0455

purple@purplecom.com.au