GRANGE RESOURCES LIMITED. — Major Shareholding Notification 2010

Jul 26, 2010

Form 603

Corporations Act 2001 Section 671B

Notice of initial substantial holder

To Company Name/Scheme	HORSESHOE METALS LIMITED
ACN/ARSN	123 133 166

1. Details of substantial holder (1)

Name	GRANGE RESOURCES LIMITED & ASSOCIATES
ACN/ARSN (if applicable)	009 132 405

The holder became a substantial holder on $21/7/2010$

2. Details of voting power

The total number of votes attached to all the voting shares in the company or voting interests in the scheme that the substantial holder or an associate (2) had a relevant interest (3) in on the date the substantial holder became a substantial holder are as follows:

Class of securities (4)	Number of securities	Person's votes (5)	Voting power (6)
ORDINARY SHARES ("Ord")	3,922,313	3,922,313	7.20%
A\$0.20 OPTIONS	1,307,438	No voting rights are attached to the options	Grange and its Associates hold 5.58% of the options as at 21 July 2010 but the options do not have any voting rights

3. Details of relevant interests

The nature of the relevant interest the substantial holder or an associate had in the following voting securities on the date the substantial holder became a substantial holder are as follows:

Holder of relevant interest	Nature of relevant interest (7)	Class and number of securities
Grange Resources Limited & Associates	Relevant interest under subsection 608(1) of the Corporations Act 2001 (Cth)	Ord 3, 922, 313
Grange Resources Limited & Associates	Relevant interest under subsection 608(1) of the Corporations Act 2001 (Cth)	A\$0.20 OPTIONS 1,307,438

4. Details of present registered holders

The persons registered as holders of the securities referred to in paragraph 3 above are as follows:

Holder of relevant interest	Registered holder of securities	Person entitled to be registered as holder (8)		Class and number of securities
Grange Resources	Grange Resources	Grange Resources	Ord:	3,659,813
Limited & Associates	Limited	Limited		Options: 1,210,938
Grange Resources	Horseshoe Gold Mine	Horseshoe Gold Mine	Ord:	1,219,938
Limited & Associates	Pty Ltd	Pty Ltd	Options:	87,500

5. Consideration

The consideration paid for each relevant interest referred to in paragraph 3 above, and acquired in the four months prior to the day that the substantial holder became a substantial holder is as follows:

Holder of relevant interest	Date of acquisition	Consideration (9)		Class and number of securities
		Cash	Non-cash
Grange Resources Limited	20 July 2010	A\$0.20 per ord share		Ord: Options: 1,210,938	3,659,813
Horseshoe Gold Mine Pty Ltd	20 July 2010	A\$0.20 per ord share		Ord: Options:	1,219,938 87,500

6. Associates

The reasons the persons named in paragraph 3 above are associates of the substantial holder are as follows:

Name and ACN/ARSN (if applicable)	Nature of association
Horseshoe Gold Mine Pty Ltd (ACN 008 921 211)	Fully owned subsidiary of Grange Resources Limited Group

7. Addresses

The addresses of persons named in this form are as follows:

Name	Address
GRANGE RESOURCES LIMITED	Level 11, 200 St Georges Tce, Perth WA 6000
HORSESHOE GOLD MINE PTY LTD	Level 11, 200 St Georges Tce, Perth WA 6000

Signature

DIRECTIONS

• If there are a number of substantial holders with similar or related relevant interests (eg. a corporation and its related corporations, or the $(1)$ manager and trustee of an equity trust), the names could be included in an annexure to the form. If the relevant interests of a group of persons are essentially similar, they may be referred to throughout the form as a specifically named group if the membership of each group, with the names and addresses of members is clearly set out in paragraph 7 of the form.
• See the definition of "associate" in section 9 of the Corporations Act 2001. $(2)$
• See the definition of "relevant interest" in sections 608 and 671B(7) of the Corporations Act 2001. $(3)$
• The voting shares of a company constitute one class unless divided into separate classes. $(4)$
• The total number of votes attached to all the voting shares in the company or voting interests in the scheme (if any) that the person or an $(5)$ associate has a relevant interest in.
• The person's votes divided by the total votes in the body corporate or scheme multiplied by 100. $(6)$
• Include details of: $(7)$
• any relevant agreement or other circumstances by which the relevant interest was acquired. If subsection 671B(4) applies, a copy of $(a)$ any document setting out the terms of any relevant agreement, and a statement by the person giving full and accurate details of any contract, scheme or arrangement, must accompany this form, together with a written statement certifying this contract, scheme or arrangement; and
• any qualification of the power of a person to exercise, control the exercise of, or influence the exercise of, the voting powers or $(b)$ disposal of the securities to which the relevant interest relates (indicating clearly the particular securities to which the qualification applies).

See the definition of "relevant agreement" in section 9 of the Corporations Act 2001.

• If the substantial holder is unable to determine the identity of the person (eg. if the relevant interest arises because of an option) write $(8)$ "unknown".
• Details of the consideration must include any and all benefits, money and other, that any person from whom a relevant interest was
  acquired has, or may, become entitled to receive in relation to that acquisition. Details m $(9)$ discribed in the benefit is continuous to receive in relation to that acquisition. Details must be included even in the benefit is conditional
  the happening or not of a contingency. Details must be included of any benefit