Spitfire Resources Limited (ASX: SPI)

Australian exploration company, Spitfire Resources Limited (ASX Code: SPI ? ?Spitfire?), is pleased to announce that the two key Exploration Licences covering the Langloh and Avoca thermal coal projects in Tasmania have now been granted, clearing the way for exploration and evaluation activities to proceed.

Spitfire has been advised that Exploration Licences EL 28/2008 (Langloh) and EL 27/2008 (Avoca) have been granted by the Hon. David Llewellyn, Minister for Energy & Resources in Tasmania.

The granting of the tenements satisfies the final remaining condition required for Spitfire to complete the acquisition of privately owned company, Black Rock Energy Pty Ltd.

Spitfire reached a conditional agreement to acquire Black Rock in May of this year, these conditions being the granting of the Exploration Licences, completion of due diligence and receipt of final regulatory approvals.  Now that these conditions have been met Spitfire will proceed to complete Stage 1 of the acquisition which involves the issue of 10 million ordinary Spitfire shares to the vendor shareholders of Black Rock.

The Langloh (Hamilton) Coal Project comprises an existing JORC compliant 10 million tonne In Situ Inferred thermal coal resource within EL 28/2008, while the Avoca Project (EL 27/2008) contains known coal seams which were worked historically and explored by companies including Shell and WMC in the 1970?s and 1980?s.

The other properties within the portfolio, Ouse and Sandfly, remain subject to Exploration Licence Applications.

Stage 2 of the acquisition will involve the issue of a further 10 million ordinary Spitfire shares to the vendor shareholders of Black Rock or a payment of $2 million in cash (or a mixture of both) at Spitfire?s election on the delineation within two years of not less than 25 million tonnes of black bituminous coal either within one of the tenements or across all of the tenements combined.

Spitfire?s Chairman and Managing Director, Mr. James Hamilton, said the granting of the tenements marked a further milestone for Spitfire, enabling it to complete the Black Rock acquisition and commence evaluation activities on site with a view to developing the foundations of a thermal coal export business.

?The next steps at Langloh include conducting some test work to assess the quality and characteristics of the coal. We are continuing to plan our longer term exploration and evaluation program, which will commence next year. At the same time, we have begun discussions with potential strategic partners for this project?.

?We will assess the optimum strategy for advancing our coal strategy once these discussions have progressed and after taking into consideration our other exploration commitments at the South Woodie Woodie manganese project and the current financial and economic environment,? he added.

ENDS

Released by:                                                                                                                         On behalf of:

Mr. Nicholas Read                                                                                                               Mr. James Hamilton

Read Corporate                                                                                                                   Managing Director

Telephone: (61-8) 9388 1474                                                                                            Spitfire Resources Limited

www.readcorporate.com.au                                                                                            Telephone: (61-8) 6382 3700

                                                                                                                                                 www.spitfireresources.com

About Spitfire Resources

Spitfire Resources Limited (ASX Code: SPI) is an Australian resource company initially focused on the exploration and development of a portfolio of manganese exploration assets in the East Pilbara region of Western Australia. Spitfire listed on the Australian Securities Exchange in December 2007 following a successful A$6 million Initial Public Offer (IPO).  

The South Woodie Woodie Project comprises three granted Exploration Licences. The principal area of initial exploration focus lies some 50km down-strike from the 1Mtpa Woodie Woodie manganese mine.

Spitfire has also announced that it has secured a substantial portfolio of new exploration tenure near the South Woodie Woodie Project, more than doubling its existing land holdings in the prospective East Pilbara region. The Company has lodged applications for four strategic tenements, covering a total area of 899 square kilometres, which are located approximately 13km south-east of the South Woodie Woodie Project.

In May 2008 Spitfire announced a conditional agreement to acquire Black Rock Energy Pty Ltd, the owner of a prospective portfolio of Tasmanian Coal Projects.

ENDS

Competent Person?s Statement ? Tasmanian Coal Project

The information in this Report/Announcement/Statement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Neil Fraser who is a Member of The Australasian Institute of Mining and Metallurgy. Neil Fraser is employed by Marston International Pty Ltd and 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 ?Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves?. Neil Fraser consents to the inclusion in the Report/Announcement/Statement of the matters based on his information in the form and context in which it appears.

READ CORPORATE
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