Jupiter Mines gains another large shareholder, Red Rock Resources stake now 13.5%

Iron ore and manganese explorer Jupiter Mines (ASX: JMS) today announced that POSCO Australia Pty Ltd (POSCO), will become a strategic investor in Jupiter.

Jupiter is a junior mining exploration company listed on the Australian Stock Exchange, in which Red Rock has a shareholding of 15.2 per cent following the implementation of the first phase of the proposal from Pallinghurst Resources Australia Limited ('PRAL') and Red Rock as described in the Company's announcements of 10 November 2008 and 9 March 2009.

POSCO will be issued 48 million JMS ordinary shares at 16.266 cents per share.

POSCO has previously entered into a cooperation agreement with Pallinghurst, an existing shareholder of Jupiter, to jointly pursue steel feed projects.

Following the placement, which will raise $7.81 million and is subject to shareholder approval, POSCO will hold approximately 16.65% of the expanded capital in Jupiter. JMS will have cash of $14.5 million.

Funds raised will be used to accelerate exploration and development activities at its Central Yilgarn Iron Ore projects and Manganese assets.

At Central Yilgarn, a new inferred resource model for Mt Mason was calculated resulting in a substantial upgrade to 5.75 million tonnes at 59.9%Fe, 3.5%Al2O3, 7.4%SiO2, 0.064%P and 3.0%LOI using a 55%Fe cutoff grade. As importantly, the resource remains open to the northeast and will be evaluated in future exploration programs.

Jupiter has struck an offtake deal with POSCO to buy up to 50% of future DSO-grade iron ore production.

Jupiter’s Executive Chairman Geoff Wedlock said POSCO’s technical capability and experience was highly regarded and will be beneficial to Jupiter to the next stage of its growth.

Mr S M. Woo of POSCO said the company looks forward to working with Jupiter to capitalise on the development of its Central Yilgarn Iron Ore projects and is pleased to have secured an offtake agreement on favourable terms for both companies.

Following the placing by Jupiter to POSCO, Red Rock's shareholding of 38,948,586 shares will represent approximately 13.51% of Jupiter's enlarged issued ordinary share capital.

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