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MACH7 TECHNOLOGIES LIMITED Capital/Financing Update 2011

Mar 6, 2011

65285_rns_2011-03-06_0dc10105-148a-42e1-b4a9-4099c602a6b8.pdf

Capital/Financing Update

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ASX ANNOUNCEMENT

Option to Acquire Three Rivers West and North Tenements.

The Directors of Safety Medical Products Limited (“ Safety Medical ” or the “ Company ”) are pleased to announce that they have negotiated and finalized an option agreement to acquire key tenements in the Three Rivers Area of north western Australia from Brutus Constructions Pty Ltd (“ Vendor ”).

The Option Agreement is subject to regulatory approvals and final documentation.

The Vendor is the holder of the Tenements which are located South East of the Three River station in the Peak Hill goldfield, 200km to the North East of Meekatharra, Western Australia and comprise a total area of approximately 37 square kilometres.

The specific Tenements are EL 52/2605, which is granted, and EL 52/2656 under application and pending grant.

The Tenements are immediately adjacent to Exploration Licenses under option to Resource and Mineral Investments NL, described as the Three Rivers Project in their recent Interim Financial Report:

“The Project lies about 35 Km north of DeGrussa and 15 km northwest of the Plutonic Gold Mine. The tenements lie predominantly within Proterozoic sediments of the Bangemall Group; with large sections of the project area covered by recent alluvial sediments related to the Gascoyne River. RNI believes the area has potential to host significant mineralization.”

The payment to the Vendor for entering into the option with Safety Medical is the payment of $100,000 in cash and 10,000,000 fully paid ordinary tradable shares in Safety Medical.

The option is exercisable in writing on or before July 31 2011 by the Company giving written notice to the Vendor and paying the following consideration:

  • 30,000,000 fully paid ordinary tradable shares in Safety Medical;

  • 30,000,000 fully paid ordinary tradable shares in Safety Medical on the Company attaining a market capitalization of $40,000,000; and

  • 2% Net Smelter Royalty.

Safety Medical is continuing with its detailed review of the SecureTouch syringe project and is shortly to commence a PreFeasibility Study to examine the best approach to commercialise the project.

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Safety Medical Products Limited Level 24, St Martin’s Tower 44 St George’s Terrace Perth Western Australia, 6000 ACN 007 817 192 Phone: (08) 6211 5099 Fax: (08) 9218 8875 Website: www.safemed.com.au

ASX Code: SFP

SafetyMed® is a registered trademark of Safety Medical Products Ltd

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However it is also continuing to explore other opportunities and sees the Three Rivers option as a low cost option into an exciting new mineral province.

Yours sincerely

Simon Lill

Director

  • 7 March 2011

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