GRANGE RESOURCES LIMITED. — Capital/Financing Update 2009

Dec 15, 2009

16 December 2009

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RESTRUCTURING INITIATIVES COMPLETE

Grange Resources Limited ( Grange or Company ) is pleased to announce that the restructuring initiatives announced on 17 August 2009 are now complete following the placement of 99,800,000 ordinary fully paid shares at $0.29 to the Cornerstone Shareholders.

Key highlights of the restructuring:

• Significant reduction in liabilites and payment timing extended thereby improving the balance sheet;

• Positions Australia’s leading magnetite producer to capitalise on the promising future iron ore price outlook and enhanced future cash flow;

• Full participation by Cornerstone Shareholders, which include significant operators in the Chinese iron ore and steel sectors; and

• Working capital to continue with investment in Savage River operations and continued development of Southdown.

Grange Managing Director, Mr Russell Clark, said “As a result of the restructure, the Company is in a great position to take advantage of any iron ore price increase in the New Year. The Southdown project will also benefit, particularly now the Minister of the Environment has approved the main mine permit.”

-ENDS-

For further information, please contact:

Russell Clark Managing Director & CEO Grange Resources Limited + 61 8 9321 1118 Or visit www.grangeresources.com.au