Acquisition(s)

Announcement Arakan Resources Limited Acquisition Arakan Resources Limited (Arakan) is pleased to announce the completion of the acquisition of Posit Coal Pty (Posit) through the issuance of 40,000,000 shares issued at $0.20 cents per share for a total consideration of $8,000,000 usd. Posit Coal has entered into a Joint venture with state enterprise Kyrgyz Kumor for the management and increase in production of the Kara-Keche thermal coal project in the Kyrgyz Republic. It is estimated that the Kara-Keche mine which is currently in small scale production of approximately 100,000 mtpa contains upto 100mt of coal. Posit has entered into the agreement to increase production to 1.5 mtpa over a 3 year period which will result in significant cash flows for the 50-50 joint venture between the company and State enterprise Kyrgyz Kumor. As part of this transaction Posit will appoint 2 new members to the board. Christian West, director of Arakan Resources Limited states "this is an important acquisition for Arakan and provides diversification both geographically and minerally. In addition it will provide exposure to cash flows which we believe will increase significantly over the coming years"
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