Atlas Iron Limited Update on Recommended Takeover Offer for FerrAus

Atlas Iron Limited is pleased to confirm the timetabore crushing machine speed control pricele for its recommended takeover offer for FerrAus announced on 27 June 2011. Atlas will open its bid for FerrAus in the week starting 5 September 2011.

In June 2011 Atlas and FerrAus executed a Bid Implementation Agreement, pursuant to which Atlas has agreed to offer FerrAus ordinary shareholders 1 Atlas share for every 4 FerrAus ordinary shares. This implied an offer price of A$0.858 per FerrAus ordinary share and represented a premium of 34% to FerrAus' closing share price on 24 June 2011. As announced on 25 July 2011, the Atlas takeover offer is no longer subject to the completion of the Subscription and the Iron Ore Assets Acquisition. Each FerrAus Director continues to recommend that FerrAus...