Extension of Offer for Allegiance Mining

5 March 2008

Zinifex Australia Limited ("Zinifex") has extended the offer period under its takeover bid for all the ordinary shares in Allegiance Mining NL.

We have taken this decision as it has been drawn to our attention that it has taken longer than expected for Allegiance shareholders to receive Zinifex's revised Acceptance form.

In the interests of ensuring that all Allegiance Shareholders have sufficient time to accept Zinifex's bid, the offer is now scheduled to close at 7pm (Melbourne time) on 20 March 2008 (Easter Thursday). A formal notice of variation is enclosed.

Key features of the offer are as follows:

• The offer is $1.10 for each Allegiance share. This price is final, in the absence of a superior proposal emerging.
• Allegiance directors have recommended acceptance and intend to accept in respect of all shares held by them or on their behalf, in the absence of a superior proposal.
• The revised price represents a premium of 55% over the closing price before our offer was announced in December.

Accepting shareholders will be paid within 5 business days of receipt of a valid acceptance.

If you have already accepted Zinifex's offer you need not take any action. If you have not, I strongly urge you to accept the offer without delay.

If you have any queries in relation to how to accept the offer or any other matter relating to the takeover bid, please contact the Zinifex offer information line on 1300 658 985 (within Australia) and +61 2 8986 9352 (outside Australia).

Yours faithfully

Andrew Michelmore
Chief Executive Officer
ZINIFEX LIMITED