IGO LIMITED — Capital/Financing Update 2007

Jul 25, 2007

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26 July 2007

ATLAS ACQUIRES ROYALTIES and NON Fe RIGHTS

Atlas Iron Limited [ASX Code: AGO] wishes to advise that it has reached agreement with Independence Group NL [ASX Code: IGO] and Western Australian Resources Ltd [WAR] to acquire ownership and full mineral rights of tenements E45/2285, E45/2286, E45/2380 and E45/2381 (refer to map attached).

Atlas exercised an option to acquire Iron Ore rights over these tenements in June 2006 and has since discovered the South Limb iron ore deposit. South Limb forms part of Atlas’ Pardoo Direct Shipping Ore Project, development of which was recently endorsed by the Atlas Board.

The key terms of the acquisition are:

• Allotment to IGO & WAR of a total of 1,460,000 Atlas shares

• Atlas acquires tenement ownership and all mineral rights

• IGO and WAR relinquish right to claw-back tenement equity and gross sales royalty

Atlas Managing Director David Flanagan said: “We are pleased to acquire the clawback rights and non-Fe rights over these tenements. It will help simplify the ownership structure of these tenements. This will allow us to focus on development of Pardoo in the optimal manner, without the complication of mining tenements held in Independence Group / Western Australian Resources’ name and meeting obligations imposed by the claw-back provisions. The acquisition of rights to all other minerals in this prospective area and the removal of a future iron ore royalty liability are added bonuses.”

Background Atlas Iron Limited

Atlas owns 100% of the iron ore rights to the Pardoo Project, located 75 kilometres from the Public access port of Port Hedland. The company is on target for the commencement of exporting iron ore by October 2008, shipping at a rate of 1 million tonnes per annum in its first year. Atlas is working to increase the underlying resource base sufficient to achieve a production rate of 3 million tonnes per annum by 2010.

On 24 July 2007 Atlas announced an 853 million tonnes at 37.2% Fe inferred resource on its Pardoo Magnetite Project. Atlas is now moving to complete a Pre-feasibility Study on its Pardoo Magnetite Project by August 2008.

For further enquiries, please contact: David Flanagan Managing Director 08 9476 7900

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----- Start of picture text ----- Map of Atlas’ Pardoo project illustrating the tenements subject to this agreement----- End of picture text -----