Albidon raises $13.4m for Zambian nickel project

Nedlands-based nickel company Albidon Ltd has raised $13.4 million from UK and Australian instititional investors to fund development of its Munali project in Zambia.

The company, dual listed on the ASX and London's AIM market, said it has conditionally placed 14.1 million new ordinary shares at a price of 95 cents per share to raise the money.

This morning Albidon shares were trading flat at $1.01, having increased from a levels of around 70 cents about 18 months ago, giving it a market capitalisation of $95.3 million.

The company said that 8.7 million shares will be made available in Australia, with the majority already subject to subscription agreements.

The remaining shares will be made available in the UK.

Below is the full announcement:

ALBIDON RAISES A$13M TO ACCELERATE ITS AFRICAN NICKEL PROJECTS

Albidon Limited ("Albidon" or the "Company") has conditionally placed 14.1 million new ordinary shares
at a price of A$0.95 (#0.38) per share to raise up to A$13.4 million (#5.4 million) before expenses.

The placing will be undertaken primarily to institutional investors located in the United Kingdom and
Australia.

The purpose of the placing and proposed use of funds is as follows:

1. Commence pre-production activities at the Munali Nickel Project to accelerate the development of the project;
2. Continuation of step-out drilling aimed at expanding the Enterprise resource at Munali;
3. Follow-up drilling to delineate further nickel resources within the Munali Intrusion, to the north
of the Enterprise deposit;
4. Drilling to test additional targets defined by geophysics and geology in the Munali district;
and
5. General operating expenses.

The Company will issue the shares utilising its 15% capacity under ASX Listing Rule 7.1.

The placing of shares in the UK will be undertaken by Numis Securities Limited ("Numis") on behalf of
the Company. Numis has agreed to use reasonable endeavours to place 5,400,000 shares. The placing
of the shares by Numis has been underwritten and is conditional on the placing agreement between the
Company and Numis becoming unconditional and not being terminated on or before 26 June 2006 (or
such later date as Numis and the Company may agree, being no later than 3 July 2006). The remaining
8,700,000 shares will be directly placed by the Company in Australia, with the majority of these shares
already subject to firm subscription agreements.

Albidon is pleased with the strong interest and support for its Munali Nickel Project and related activities
as represented by the participation in this capital raising.