CANNINDAH RESOURCES LIMITED — Capital/Financing Update 2008

Dec 14, 2008

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ASX / Media Release

15 December 2008

Short-term Funding Secured From Outback Metals Limited

Queensland Ores Limited (ASX Code: QOL) today advised it has successfully secured a short-term debt funding facility of $600,000 which will provide the Company with the flexibility to properly assess its strategic options.

The funding is to be provided by exploration company Outback Metals Limited (ASX Code: OUM). Queensland Ores has granted Outback Metals an exclusive option period during which Outback Metals may conduct due diligence on Queensland Ores. This initial exclusive period expires on 23 December 2008.

The provision of the funding is not contingent upon any particular outcome in relation to a commercial proposal which may be put forward by Outback Metals following completion of its due diligence.

Queensland Ores and Outback Metals have agreed to negotiate in good faith with a view to formulating a satisfactory commercial arrangement to secure Queensland Ores’ future.

Queensland Ores Managing Director Taff Greenwood said he was pleased to have been able to secure funding in the current climate and ahead of the Company’s January target. Mr Greenwood also noted that the Company presently has no other debt.

“These funds will give the Company the time and resources to assess the best way forward for Queensland Ores and its shareholders,” Mr Greenwood said.

“The funds will be used toward the ongoing management of the Company during its care and maintenance program,” he said.

Outback Metals Chief Executive Officer Chris Jordinson said he is pleased to have secured an exclusive option position to enable Outback Metals to make a proper assessment of Queensland Ores and its assets.

“This transaction could see Outback Metals become a producer in the near-term,” Mr Jordinson said.

“Fast-tracking Outback Metals from junior explorer to producer would deliver increased shareholder value,” he said.

A party of Outback Metals representatives will travel to Queensland Ores’ Wolfram Camp project tomorrow as part of the due diligence process.

Key terms of the debt funding provided by Outback Metals are attached.

For further information: Queensland Ores Limited Taff Greenwood Managing Director

Outback Metals Limited Christopher Jordinson Chief Executive Officer

Tony Keating Company Secretary Tel: 07 3230 2000

James Cooper-Jones Company Secretary Tel: 02 9420 7200

Media:

Anna O’Gorman Principal Consultant – Three Plus Tel: 07 3503 5700

Rodney North Executive Director – Bourse Communications Tel: 03 9510 8309

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Key Terms of Debt Funding Provided to QOL by Outback Metals

Amount	Amount	$600,000	$600,000
Structure		Secured Loan Facility (Facility)
Term / Maturity Date		31 March 2009 with an option to extend to 30 June 2009 (Option).
Interest Rate		6% p.a. (calculated monthly, capitalised and payable on the MaturityDate).
Security		The Facility is to be secured by a fixed charge over QOL’s interest inthe Wolfram Camp Plant (Plant).
Non-recourse		Security is limited to the Plant without recourse to QOL’s other assets.No further claim can be made upon QOL if the proceeds from thedisposal of the Plant are insufficient to repay the Facility.
Proposed Transaction		The parties agree to negotiate in good faith regarding any proposal byOUM with respect to QOL that the QOL Board considers to add value toQOL, its assets or shareholders.The provision of the Facility is not contingent upon any particularoutcome in relation to the Proposed Transaction.
	ction	The parties agree tOUM with respect t	o negotiate in good faith regarding any proposal bo QOL that the QOL Board considers to add valu
		QOL, its assets or	shareholders.
		The provision of thoutcome in relation	e Facility is not contingent upon any particularto the Proposed Transaction.
Exclusivity		First Exclusive Pe	riod
		QOL grants OUM a	period of exclusivity during which OUM will cond
		due diligence and pTransaction.	resent to QOL the terms (if any) of a Proposed
		The First Exclusive	Period commences on the date this Term Sheet