CATALINA RESOURCES LTD — Capital/Financing Update 2011

Jul 24, 2011

25 July 2011

ASX: GRR

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GRANGE SIGNS MOU WITH SHREE MINERALS – POTENTIAL TO INCREASE PRODUCTION AT SAVAGE RIVER

Grange Resources Limited ( Grange or the Company ), Australia’s leading magnetite producer, is pleased to announce it has signed an Memorandum of Understanding (“MOU”) with Shree Minerals Limited (“Shree”), with a view to forming a strategic alliance that has the potential to increase the iron ore pellet production of Grange’s Tasmanian Operations by 150,000‐ 300,000 tonnes per annum, over and above the current production rate of 2 million tonnes per annum.

Shree is an ASX listed company (ASX: SHH) with iron ore resources at its Nelson Bay River Iron Project, north of Grange’s Savage River operations. Shree has previously published indicated and inferred resources of:

**Ore Type **	Tonnes
Magnetite	7,800,000
Goethite Hematite	1,200,000

Under the terms of the MOU Grange would:

• Provide Shree with port and ship loading facilities at Port Latta for up to 400,000 tonnes of hematite per annum;

• Provide a marketing and sales service for the hematite;

• Process magnetite from Shree for pelletising at Port Latta, adding to the current production from Savage River.

Grange Managing Director and CEO, Russell Clark, said “This MOU is an exciting development for both Grange and Shree. With the existing infrastructure we have, there is an opportunity to assist Shree in the development of its project, and to allow Grange to increase its production at its Tasmanian Operations, leveraging existing downstream processing infrastructure with minimal capital cost implications. The potential benefits to the local economy are significant, with positive implications for both employment and the local economy.”

Shree Chairman, Sanjay Loyalka, said “This MOU facilitates an opportunity to realise synergistic outcomes from the Nelson Bay Iron River Project and Grange’s Tasmanian Operations to the mutual benefit of both companies, as well as providing enhanced economic benefits in North West Tasmania.”

‐ENDS‐

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For more information, please contact:

Investors: Media: Russell Clark Eliza Gee Managing Director & CEO Buchan Consulting Grange Resources Limited +61 3 9866 4722/ +61 432166431 + 61 8 9327 7901 egee@bcg.com.au

Or visit www.grangeresources.com.au

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