GALAN LITHIUM LIMITED — M&A Activity 2011

Dec 27, 2011

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ASX ANNOUNCEMENT

23 December 2011

ASX Release

Withdrawal of bid for Winmar Resources Ltd (ASX:WFE) (‘Winmar’)

Dempsey Minerals Ltd (ASX:DMI) (‘ Dempsey ’) advises that it does not intend to proceed with its announced takeover bid for all shares in Winmar.

On 23 November 2011 Dempsey announced its intention to make an off‐market takeover bid for all of the shares in Winmar. On 29 November 2011 Winmar announced that it had agreed to issue shares to PXSteel International (Asia) Corporation Limited (‘ PXSteel ’), subject to Winmar shareholder approval. Dempsey did not know of the PXSteel agreement and could not reasonably have been expected to know of it at the time it announced its intention to bid for shares in Winmar.

Winmar’s entry into an agreement to issue shares to PXSteel, although conditional on Winmar shareholder approval, is a prescribed occurrence which breaches an important condition of Dempsey’s bid. As a result Dempsey will not proceed with its announced bid for all shares in Winmar in circumstances where the contracts to acquire Winmar’s shares arising upon acceptances of Dempsey’s takeover offers would be subject to an already triggered material defeating condition.

For further information, please contact:

Nathan McMahon

Non‐executive Chairman Email: nathan@dempseyminerals.com.au Phone +618 9322 6283

__________________________________________________________________________________ Level 2, 38 Richardson Street, West Perth, WA 6005 PO Box 396, West Perth, WA, 6872 Ph. +61 8 9322 6283 Fax. +61 8 9322 6398 www.dempseyminerals.com.au