IONIC RARE EARTHS LIMITED — Capital/Financing Update 2008

Sep 2, 2008

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ASX RELEASE

3 September 2008

Ezenet enters into agreement giving exclusive rights to negotiate the acquisition of Malawi coal interests

Ezenet Ltd (ASX: EZE), through fully owned subsidiary E-Resources Pty Ltd has signed an agreement giving exclusive rights to carry out due diligence and elect to negotiate an acquisition of coal interests in Malawi.

As previously released, Ezenet has been pursuing and evaluating various mining opportunities. In April, 2007 Ezenet established E-Resources Pty Ltd to hold existing interests and progress new mineral investment opportunities

Under the agreement E-Resources has exclusive rights to undertake due diligence on and negotiate the acquisition of mining and exploration interests on the Mchenga Coalfield and the Ngana Goldfield in the Northern coalfield of Malawi. The exclusive period is 8 weeks and during this period E-Resources has the right to elect to acquire some or all of the interests on terms to be agreed upon.

E-Resources is presently assembling information and developing a programme to carry out the initial due diligence investigation.

Simon Watson Company Secretary

About Ezenet

Listed on the ASX in 1999, Ezenet Ltd (EZE) was originally established to provide a "plug and play" internet set top box that enabled low cost web access. In 2001, the company shifted its focus to supplying digital free-to-guest and on-demand pay movies to the Australian hospitality and healthcare industries. In 2003, 100%-owned subsidiary Ezestream Pty Ltd was established to operate Ezenet’s digital movie and internet business. In addition, Ezenet owns 18.2 million shares in Weatherly International plc, a London based, AIM-listed mineral company with copper assets in Namibia through the acquisition of Ongopolo Mining & Processing Limited. As at 2 September 2008, Ezenet’s shareholding in Weatherly International was valued at A$4.8m or 5.8 cents per Ezenet share.

EZENET LIMITED

2 Bulimba Road Nedlands Western Australia 6009 T: +618 9389 9345 F: +618 9389 9749 W: www.ezenet.com.au ACN 083 646 477 ABN 84 083 646 477