ASX Announcement: Unsolicited Takeover Offer From Zinifex Limited

SYDNEY, Australia, Dec. 17 /PRNewswire/ -- Allegiance Mining NL ("Allegiance") (ASX: AGM) has noted the announcement by Zinifex Limited ("Zinifex") that it intends to make a conditional off-market takeover offer for all of the outstanding shares in Allegiance.

Zinifex's takeover offer is unsolicited. The Allegiance Directors believe the offer is opportunistic and designed to take advantage of the company following the recent successful drawdown of the project finance facilities and with production scheduled to commence at the company's Avebury Nickel project which is expected in the first quarter 2008.

The Board is unanimous in its view that Allegiance shareholders should take no action or make any decision in relation to their shareholding until the Board has had an opportunity to consider the Bidder's Statement and has issued its formal recommendation regarding the offer.

Your Directors will carefully consider the offer as well as all other potential options to ensure the best result for all shareholders is achieved.

Allegiance has appointed Merrill Lynch International (Australia) Limited and ANZ Corporate Finance as financial advisers and Minter Ellison and Schetzer Brott & Appel as its legal advisers to assist the Directors to evaluate and respond to the unsolicited takeover offer from Zinifex.

The Directors will keep shareholders fully informed of further developments.

    TONY HOWLAND-ROSE
    MSc, DIC, FGS, FIMMM, FAusIMM, FAIG, CEng
    CHAIRMAN

    For Further Information Contact:
    Tony Howland-Rose, Chairman: +61(02)9397 7777 or +61 0418 972 112
    David Deitz, Director and CFO: +61(02)9397 7777 or +61 0411 858 830