ASTRON LIMITED — Capital/Financing Update 2010

Apr 26, 2010

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Astron Limited

27 April 2010

ASX Release: Donald Mineral Sands Resource Update

Astron Limited (ASX: ATR) today announced a revised calculation of its mineral resources in the Murray Basin Victoria. Re-modelling of historical drill data for the EL4433 (Donald) and EL4432 (Jackson) with a cut-off grade of 1% HM. is based on updated processing methodology together with improved understanding of the orebody and planned ore extraction methods.

The recalculated resource is 4.5 billion tonnes of HM at a average grade of HM of 4% and compares with previously announced 1.7 billion tonnes of HM at an average grade of HM of 6%

The company will lodge a Mining License (ML) application with the Victorian Department of Primary Industries in the near future. The proposed ML is within the Donald Project Area (DPA)

A previous Mineral Resources estimate was carried out by AMC in 2006 for the DPA area, using drilling generally spaced on a 250m x 500m grid. This drilling was carried out using air-core methods with sampling on 1m intervals for HM and composited samples of the higher HM grade zones for zircon and other minerals.

Mr. Rod Webster of AMC Consultants Pty Ltd, Melbourne (AMC) was engaged by ATR and has produced a block model and Mineral Resource estimate for part of EL4433 (to a northing of 5,976,600mN) and EL4432. Tables 1 and 2 detail the Mineral Resources above a cut-off grade of 1% HM and in accordance with the JORC Code[1 ] . A map showing the location of the areas referred to in the tables is shown as Figure 1.

Astron Ltd Managing Director Alex Brown said that ‘the revised resource is further evidence of the impressive size of Astron’s assets in the Murray Basin’

The company is currently undertaking an infill (to 250m x 250m grid) drilling program on the Proposed ML to further define the orebody and move into the final stages of detailed design of the Donald project. Drilling is also planned in the northern part of EL4433 (250m x 500m drill spacing) to enable a resource to be estimated in this area, where the existing drilling has shown similar HM and VHM grades to other areas of EL4433. Infill drilling (to 250m x 500m grid) is also planned in the area east of the DPA to identify a possible high grade VHM area and on EL4432.

Table 1. Mineral Resource Estimate - Percent HM above 1% HM Cut-off

Classification	Area	Tonnes (M)	HM (%)	Slimes (%)	Oversize (%)	Tonnage HM (M)	Tonnage Slimes (M)	Tonnage Oversize (M)
Indicated	EL4433	500	5.3	14.2	6.6	26	69	32
Inferred	EL4433	3,100	3.3	14.9	4.3	102	465	135
Inferred	EL4432	900	5.9	15.0	2.2	53	134	20
Total		4,500	4.0	14.9	4.2	181	668	187

Table 2 lists the valuable heavy minerals (VHM) resource at a cut-off of 1% HM that is contained within the resource listed in Table 1 but only from within the areas of higher grade HM where composited samples have been taken and analysed for VHM.

Table 2 Mineral Resource Estimate - Percent VHM above 1% HM Cut-off

Classification	Area	Tonnes (M)	Zircon (%)	Ilmenite (%)	Rutile (%)	Leucoxene (%)
Indicated	EL4433	400	1.1	1.9	0.3	1.2
Inferred	EL4433	1,000	1.0	1.9	0.1	0.9
Inferred	EL4432	700	1.3	2.2	0.0	0.7
Total		2,100	1.1	2.0	0.1	0.9

Note: The VHM Mineral Resource is located only within the areas of higher HM grade where composited samples have been taken and analysed for VHM.

Note:

1. The Mineral Resources are reported in accordance with the JORC Code[1] .

2. All resources have been rounded to the nearest 100 million tonnes and one decimal place for grade.

3. The information in this statement that relates to the Mineral Resources is based on information compiled by Dr A P Fowler and Mr R L Webster, who are both Members of The Australian Institute of Mining and Metallurgy and are full-time employee of AMC Consultants Pty Ltd. Mr R Webster has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he

is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. R L Webster consents to the inclusion in the statement of the matters based on his information and the form and context in which it appears.

1 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2004 Edition, prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia

Figure 1: Location

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