MGX RESOURCES LIMITED — Capital/Financing Update 2006

Nov 12, 2006

13 November 2006

The Manager Companies Australian Stock Exchange (Melbourne) Ltd. 525 Collins Street MELBOURNE VIC 3000

CAMBRIAN TO SELL IRON ORE STAKE

Cambrian advises that it has entered into an agreement to sell its 19.9% shareholding in Western Australian iron ore producer, Mount Gibson Iron Ltd, for gross proceeds of AUD\$98.8 million. The agreement is subject to registration formalities being completed.

The sale is in line with Cambrian's long term strategy of concentrating its investments in businesses where it is able to influence the development and growth of the enterprises via maintaining its position as a major or controlling shareholder. Accordingly, part of the proceeds from the sale of the holding in Mount Gibson will be used to further strengthen Cambrian's coal and energy divisions.

Cambrian acquired 109.7 million Mount Gibson shares after supporting Mount Gibson's efforts to consolidate the mid-sized iron ore producers in Western Australia though its takeover offer for Aztec Resources Ltd ("Aztec").

With this sale at AUD\$0.90 per share, and previous options transactions, Cambrian will realise a pre-tax profit of AUD\$36.4 million on the total funds invested in Aztec. These funds played an important role in Aztec's ability to redevelop the high grade Koolan Island iron ore mine and demonstrate Cambrian's strategy to provide both financial and strategic support to its investee companies.

Cambrian's CEO. John Byrne, commented: "Cambrian's business model is to acquire control of each of the companies that we invest in or to dispose of the investment at the appropriate time.

To apply this strategy in the development of a significant new force in the world iron ore trade would have diverted funds from Cambrian's successful coal business and emerging energy division "

27 Albemarle Street, London, W1S 4DW, United Kingdom Registered in England and Wales Company Number: 4010083 www.cambrianmining.com Telephone: +44 (0)207 409 0890 Fax: +44(0)207 491 2758

Australian Office: Level 9, 175 Collins Street, Melbourne, Victoria, Australia Telephone: +61 3 9639 1533 Fax: +61 3 9650 0066

"Cambrian has opportunities for significant growth in coal through our investments in Western Canadian Coal and Coal international, both of which are already in production. We also see the potential for the rapid expansion of our energy subsidiary, Xtract Energy, with its major Queensland oil shale project and its interest in a developing liquefied natural gas (LNG) and methanol project off the north west coast of Australia."

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For further information contact: Cambrian Mining Plc +44 20 7409 0890 Mark Burridge / John Byrne Parkgreen Communications +44 20 7493 3713 Cathy Malins / Annabel Leather