AERIS RESOURCES LIMITED — Major Shareholding Notification 2011

Jul 5, 2011

603 page 1/2 6 July 2011

Form 603

Corporations Act 2001 Section 671B

Notice of initial substantial holder

To: Company Name/Scheme Advanced Magnesium Limited ACN/ARSN 010 441 666

1. Details of substantial holder (1)

Name Straits Resources Limited ACN/ARSN (if applicable) 147 131 977 This notice is also given on behalf of the subsidiaries of Straits Resources Limited, including those set out in Annexure A (“Straits Subsidiaries”).

The holder became a substantial holder on 4 July 2011

2. Details of voting power

The total number of votes attached to all the voting shares in the company or voting interests in the scheme that the substantial holder or an associate (2) had a relevant interest (3) in on the date the substantial holder became a substantial holder are as follows:

Class of securities(4)	Number of securities	Person’s votes(5)	Voting power(6)
OrdinaryFullyPaid Shares	40,499,167	40,499,167	13.04%

3. Details of relevant interests

The nature of the relevant interest the substantial holder or an associate had in the following voting securities on the date the substantial holder became a substantial holder are as follows:

Holder of relevant interest	Nature of relevant interest (7)	Class and number of securities
Straits Mine Management PtyLtd	Votingrights and right to dispose	40,499,167 OrdinaryShares
Straits Resources Limited and other Straits Subsidiaries	As parent company and related bodies corporate respectively of Straits Mine ManagementPtyLtd	40,499,167 Ordinary Shares

4. Details of present registered holders

The persons registered as holders of the securities referred to in paragraph 3 above are as follows:

Holder of relevant interest	Registered holder of securities	Person entitled to be registered as holder(8)	Class and number of securities
Straits Mine Management PtyLtd	Straits Mine Management PtyLtd	Straits Mine Management PtyLtd	40,499,167 OrdinaryShares

5. Consideration

The consideration paid for each relevant interest referred to in paragraph 3 above, and acquired in the four months prior to the day that the substantial holder became a substantial holder is as follows:

Holder of relevant interest	Date of acquisition	Consideration(9)	Consideration(9)	Class and number of securities
		Cash	Non-cash
Straits Mine Management PtyLtd	4 July2011	Nil	Refer Annexure B	40,499,167 OrdinaryShares

603 page 2/2 6 July 2011

6. Associates

The reasons the persons named in paragraph 3 above are associates of the substantial holder are as follows:

Name and ACN/ARSN(if applicable)	Nature of association
Refer Annexure A

7. Addresses

The addresses of the persons named in this form are as follows:

Name	Address
Straits Resources Limited	Level 1,35 Ventnor Avenue West Perth WA 6005
Straits Subsidiaries	Level 1, 35Ventnor AvenueWestPerth WA6005

Signature

print name Mark Hands capacity Company Secretary sign here date 6 July 2011

sign here

DIRECTIONS

(1) If there are a number of substantial holders with similar or related relevant interests (eg, a corporation and its related corporations, or the manager and trustee of an equity trust), the names could be included in an annexure to the form. If the relevant interests of a group of persons are essentially similar, they may be referred to throughout the form as a specifically named group if the membership of each group, with the names and addresses of members is clearly set out in paragraph 7 of the form.

• (2) See the definition of “associate” in section 9 of the Corporations Act 2001.

• (3) See the definition of “relevant interest” in sections 608 and 671B(7) of the Corporations Act 2001.

• (4) The voting shares of a company constitute one class unless divided into separate classes.

(5) The total number of votes attached to all the voting shares in the company or voting interests in the scheme (if any) that the person or an associate has a relevant interest in.

• (6) The person’s votes divided by the total votes in the body corporate or scheme multiplied by 100.

• (7)

Include details of:

• (a) any relevant agreement or other circumstances by which the relevant interest was acquired. If subsection 671B(4) applies, a copy of any document setting out the terms of the relevant agreement, and a statement by the person giving full and accurate details of any contract, scheme or arrangement, must accompany this form, together with a written statement certifying this contract, scheme or arrangement; and

• (b) any qualification of the power of a person to exercise, control the exercise of, or influence the exercise of, the voting powers or disposal of the securities to which the relevant interest relates (indicating clearly the particular securities to which the qualification applies).

See the definition of “relevant agreement” in section 9 of the Corporations Act 2001.

• (8)

If the substantial holder is unable to determine the identity of the person (eg if the relevant interest arises because of an option) write "unknown".

(9) Details of the consideration must include any and all benefits, money and other, that any person from whom a relevant interest was acquired has, or may, become entitled to receive in relation to that acquisition. Details must be included even if the benefit is conditional on the happening or not of a contingency. Details must be included of any benefit paid on behalf of the substantial holder or its associate in relation to the acquisitions, even if they are not paid directly to the person from whom the relevant interest was acquired.

603 page 1/1 6 July 2011

This is Annexure A of one page referred to in Form 603 – Notice of Initial Substantial Holder dated 6 July 2011 and signed by me.

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Mark Hands Company Secretary Straits Resources Limited

STRAITS SUBSIDIARIES

Registered Office for all listed below: Level 1, 35 Ventnor Avenue West Perth WA 6005

STRAITS MINERAL INVESTMENTS PTY LTD ACN 124 028 271 STRAITS MINING LTD ACN 055 020 614 TRITTON RESOURCES PTY LTD ACN 100 095 494 GIRILAMBONE COPPER COMPANY PTY LTD ACN 057 083 637 STRAITS GOLD PTY LTD ACN 072 498 081 STRAITS (HILLGROVE) GOLD PTY LTD ACN 102 660 506 STRAITS INDO GOLD PTY LTD ACN 104 934 321 INDO MURO PTY LTD ACN 100 135 000 MURO OFFSHORE PTY LTD ACN 050 028 389 STRAITS EXPLORATION (AUSTRALIA) PTY LTD ACN 061 614 695 STRAITS MINE MANAGEMENT PTY LTD ACN 083 686 033

The above companies are all subsidiaries of Straits Resources Limited pursuant to section 9 of the Corporations Act 2001.

603 GUIDE page 2/1 13 March 2000

This is Annexure B of one page referred to in Form 603 – Notice of Initial Substantial Holder dated 6 July 2011 and signed by me.

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Mark Hands Company Secretary Straits Resources Limited

CONSIDERATION – NON-CASH

Part consideration for disposal of shares in Varomet Holdings Limited, the owner of the Magontec group of companies. For additional information refer the Company’s announcement to the market dated 4 July 2011.