Auzex Exploration Limited

Bullabulling Highlights

• JORC reported mineral resource 2.6Moz contained gold
• Part of Yilgarn Craton, home to in excess of 160 gold deposits
• Previously produced 371,000 oz Au (1.45 g/t) in late 1990's
• Excellent potential for shallow high margin operation
• Existing fully licensed mine with water, road access and power
• Geological modelling identified continuous gold zones at 3 to 4 g/t Au within a broad 0.5 to 1.5 g/t envelope in primary mineralisation
• Gold mineralisation open along 12kms, and below 180m
• 131 km² permitted tenements including pastoral lease
• Current drill program expected to upgrade and add further ounces - targeting end December 2011 for program completion
• Auzex team managing the development of the project

The Directors of Auzex resources Ltd ("Auzex") are pleased to announce the signing of the binding Heads of Agreement to combine the Bullabulling Gold Project under a single corporate entity to be named Bullabulling Gold Limited through an all scrip merger of equals which will be Australian domiciled and listed on the ASX and AIM.

Highlights

• creation of a growth focused junior gold company
• 100% ownership of Bullabulling
• unified management team drawn from both Auzex and GGG
• Dual listed on ASX and AIM
• Auzex to demerge its non-Bullabulling assets
• 2.6Moz Au resource
• significant exploration potential

The transaction will be completed via 2 inter conditional transactions:

1. Establishment of Bullabulling Gold Ltd which will acquire the entire share capital of GGG Resources plc via a Scheme of Arrangement in Australia
2. Bullabulling Gold Ltd to acquire the entire share capital of Auzex Resources Ltd via a Scheme of Arrangement in Australia. Auzex will spin-out its non-Bullabulling assets as part of the merger.

Next Steps

• A management Company to be formed to assume management of Bullabulling trough to transition to Bullabulling Gold Ltd.
• Auzex and GGG to finalise a formal merger implementation agreement reflecting the terms of the Head of Agreement within 21 days.
• GGG shareholders will receive a Scheme Booklet that will contain full details of the proposed Scheme (being the the transfer of GGG shareholders shares in GGG to Bullabulling Gold Ltd)
• GGG to immediately begin the process of listing Bullabulling Gold Ltd on ASX and AIM.
• Auzex shareholders will receive a Scheme Booklet that will contain full details of the proposed Scheme (being the transfer of Auzex shareholder shares in AZX to Bullabulling Gold Ltd).

For additional details:

• Merger Announcement - 29 August 2011 (pdf download)

Attachments:

File	File size
Auzex_Targets_Statement_web.pdf	6929 Kb