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Mount Gibson Iron Ltd

Mount Gibson Iron Ltd

25-Aug-03

Has formalized a Share Subscription Agreement with a Chinese iron ore trader, Sinom (Hong Kong) Ltd.  Sinom will subscribe for 18.8 million shares at 17 cents each on or before 15 October 2003 to raise $3,196,000, and will be granted free options to subscribe for a further 18.8 million shares at 22 cents each prior to 15 October 2005.

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