Jupiter enters iron off-take deal

Jupiter Mines Ltd has entered into a potential off-take agreement with a Chinese company over its iron ore projects in Western Australia and other iron assets.

The Sydney -based company and Haoning Group have signed a heads of agreement to enter into a strategic off-take agreement for the sale of up to 40 per cent of future iron ore production.

Below is the full announcement:

Jupiter Mines Limited (ASX: JMS - "Jupiter") is pleased to announce that it has signed a Heads of Agreement (HOA) with global Chinese iron ore and metallurgical company, the Haoning Group, to enter into a strategic future off-take agreement.

Jupiter said today that it has reached agreement with LSG Resources Pty Ltd (LSG), an Australian company which is part of the global Haoning Group, encompassing the sale of up to 40% of Jupiter's future production of DSO-grade iron ore in Western Australia to LSG in the event that Jupiter identifies an economic resource within its tenements and commences iron ore production.

Chief Executive Officer of Jupiter, Mr Greg Durack, said the Heads of Agreement cements the strong relationship that Jupiter has forged with the Haoning Group following the $3.7 million share placement completed in May, which provided LSG with a 12.29% equity stake in the Company.

"We are very pleased to have secured this agreement for a future off-take contract with LSG Resources, which confirms their long term support for the Company and their recognition of the value and potential of Jupiter's Central Yilgarn Iron Project and other iron ore assets," Mr Durack said.

While details of the off-take agreement are yet to be determined, and are contingent on Jupiter's identification of an economic iron ore resource, Mr Durack said the HOA provided Jupiter and LSG with a framework to conduct future iron ore off-take negotiations in good faith.

A drill program has recently been completed at Mt Mason, comprising 1,629 metres of RC drilling over 20 holes. Assay data has now been received for 6 holes, with best results including 14m @ 64.1% iron and 5m @ 59.8% iron, both from shallow depth (refer to ASX announcement of 26 August 2008). Further assay results are expected for the balance of the holes in the near future.

The Company also has nickel exploration programs currently underway in the Widgiemooltha Region of Western Australia.

Haoning Group is a multinational organisation specialising in the import and export of iron ore, steel and metallurgical products with its headquarters in Tangshan City, Hebei Province. The Haoning Group is also active in the fields of mining, shipping, real estate, ceramics and tourism.

The Haoning Group's strategy is to expand and vertically integrate its operations globally by acquiring and developing resources, establishing partnerships and developing logistics chains. Its global operations include LSG Resources Pty Ltd in Australia, Golden World Enterprises Ltd in Hong Kong, as well as branch offices in India, Indonesia and Brazil.