RNS Number:0047Q
AuIron Energy Ld
22 September 2003


AUIRON ENERGY LIMITED


22 September 2003


TAKEOVERS Panel REFUSES AUIRON ENERGY LIMITED APPLICATION

AuIron Energy Limited ("the Company") advises that the Australian Takeovers
Panel has today lodged with the Australian Stock Exchange ("ASX") the following
announcement.


Announcements are also available from:
The Company's website:                           www.auironenergy.com.au
The ASX website:                                 www.asx.com.au


The sitting Panel has decided to make no declaration or order in relation to the
application by Westchester Financial Services Pty Ltd regarding the meeting of
AuIron Energy Limited to seek approval by AuIron shareholders of the acquisition
by AuIron of the Yarrabee Coal Company Pty Ltd, in exchange for a substantial
interest in AuIron.

The meeting was held on Friday 19 September, and approved the acquisition and
the issue of shares in AuIron to the vendor of Yarrabee, which will hold 48% of
the shares in AuIron, with options to subscribe for more shares. The transaction
cannot proceed immediately, however, as AuIron and the vendors have undertaken
to the Panel not to complete it (or withdraw from it) without giving the Panel
notice.

Westchester submitted that unacceptable circumstances had arisen in relation to
the acquisition of Yarrabee for three main reasons:

(a) the notice of meeting and accompanying independent expert's report did not
    adequately analyse the value of the Yarrabee acquisition and particularly
    did not adequately assess the value of AuIron's other assets and the 
    alternatives to the Yarrabee proposal;

(b) the documentation regarding the acquisition did not comply with the 
    requirements of the London Stock Exchange's Alternative Investments Market
    leading to AuIron losing its listing on AIM; and

(c) no substantial shareholder notice had been filed in relation to in excess of
    5% of the shares in AuIron which are held by a nominee for Williams de Broe
    plc, a London stockbroker, mainly on behalf of its clients, and Williams de
    Broe had indicated that it would vote those shares in favour of the
    resolutions for the acquisition of Yarrabee.

The Panel will provide reasons for its decision as soon as possible. In the
meantime it advises that it was not satisfied that the notice of meeting and
independent expert's report were misleading or materially deficient, that the
loss of the AIM listing had any coercive effect on AuIron shareholders or that
there was any misuse of the votes attached to the Williams de Broe client
shares.

Once time expires for an application for review on Wednesday 24 September, the
sitting Panel will be prepared to allow the acquisition and share issue to
proceed.

The sitting Panel is made up of Jeremy Schultz, Marian Micalizzi and Alice
McCleary.

George Durbridge,
Director, Takeovers Panel
Level 47 Nauru House,
80 Collins Street, Melbourne VIC 3000
Ph: +61 3 9655 3553
george.durbridge@takeovers.gov.au


CONTACT DETAILS

Mr Jon Parker                        Mr Joe Fontana
Managing Director                    CFO & Company Secretary
AuIron Energy Limited
Phone:        61 (0) 2 9357 2044
Facsimile:    61 (0) 2 9368 1313
Email:        auiron@auironenergy.com.au
Website:      www.auironenergy.com.au

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