ASTRON LIMITED — Capital/Financing Update 2008

Jul 13, 2008

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ASX RELEASE

Astron Provides Profit Guidance and Business Outlook

Astron Limited (ASX: ATR) today announced profit guidance for the year to 30 June 2008.

Astron is expecting net profit for FY08 to be approximately $128 million. This result reflects proceeds from the sale of the Astron China businesses settled on 4 February 2008, as well as a review of carrying values of remaining assets and the operating results of the sold businesses to 4 February 2008.

With the main profit generating businesses in China sold, Astron’s profit outlook for the next year to June 30 2009 is estimated to be approximately $8 million, from investment income and some trading activity, offset by overheads.

The Company’s cash position at the end of June 2008 is expected to be very strong at around $180 milllion.

Since completion of the sale of the Astron China businesses, the Company’s ongoing strategy has been to develop existing and new business opportunities that generate value for shareholders.

China Update - Astron Titanium Industrial Park

In China, the Company purchased an industrial land site from the Government in June 2008. The 133.2ha site, to be named Astron Titanium Industrial Park, is located in the Yingkou Coastal Development Zone in Liaoning province in the North East of China. Retention of the full land parcel requires Astron to complete development of the site, and Astron plans to do this by combining its own investments and complementary investments by third parties.

At the Astron Titanium Industrial Park, Astron will develop a Mineral Separation Plant, which was previously planned to be located in Bayushan. Also on the site, Astron intends to build a trial processing plant for the Company’s new Zirconium Opacifier “Zirpaque” plant.

These projects will be a significant step in the development and establishment of the Donald mineral sands project in Australia. The total additional investment to complete these initial projects will be approximately $30 million. Investment expenditure for the land and project expense to date on these projects is approximately $25 million.

Registered Office: Level 19, 2 Market Street, Sydney NSW 2000, Australia Tel: 61 2 9984 1379 Fax: 61 2 9984 0279 www.astronchem.com

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Other planned investments by Astron in this Industrial Park are the foreshadowed Ti02 Pigment plant and Zirconium Oxy-chloride and Fumed Silica plants. Environmental approvals and staffing issues are presently delaying the Ti02 project but the Company is hopeful that these issues will be resolved soon.

In addition, Astron has agreed to take a 30% share in an 80,000t per year chlorine and alkali plant, co-funded by the local government and ultimately this will be expanded by Astron and yet to be decided partners.

Research and Development facilities for production trials of a new process for the manufacture of Titanium metal (and provision for its subsequent development if successful) are also planned for the site.

These projects require further development work prior to a formal decision to proceed being made.

Construction at the Industrial Park is expected to commence later this year.

Australia Project Update - Donald Mineral Sands Mining Project

In Australia, the Donald Mineral Sands mining project is nearing the end of the Environmental Effect Statement (EES) process, with the Panel Hearing completed.

A decision to proceed with this development and its timetable will be made after completion of the EES process and the successful operation of the related Processing Plants in China.

Capital expenditure to date for this project is approximately $20 million.

Managing Director of Astron, Mr Alex Brown, said the events of the year had been pivotal in Astron’s history, and the Company is now in a very strong position to continue to grow shareholder value.

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All enquires in relation to this matter should be directed to Ann Nahajski (Office: +61 (0)8 9386 1233 or Mobile: +61 (0)400 205 433) of the company’s public relations consultant, Porter Novelli.

Registered Office: Level 19, 2 Market Street, Sydney NSW 2000, Australia Tel: 61 2 9984 1379 Fax: 61 2 9984 0279 www.astronchem.com