Jinchuan Nickel Moves to 11% of Allegiance by $38m Placement

    SYDNEY, April 30 /CNW/ -- Allegiance Mining NL ("Allegiance") (ASX Code:
AGM) is pleased to announce that it has entered into two agreements
("Agreements") with Jinchuan Group Limited ("Jinchuan") under which:

    * Jinchuan will subscribe for 48,123,044 fully paid ordinary shares in
      Allegiance ("New Shares") at an issue price of A$0.80 (80 cents) per
      share to raise A$38,498,435.

    * The issue of shares will extinguish all obligations under Jinchuan's A$5
      Million Subordinated Loan and thereby extinguish that loan.

    * Jinchuan will own a total of 11.03% of the issued shares in Allegiance.

    * Jinchuan and Allegiance have entered into a framework offtake agreement
      for all further metalliferous discoveries made in Tasmania.

    The Agreements are subject to and conditional upon statutory approvals by
the Provincial Government of Gansu Province and the Central Government of the
People's Republic of China.
    On finalisation, a Jinchuan representative will be invited to join the
Board of Allegiance Mining NL.
    The funds raised from the issue of the New Shares will be applied towards
the further development of the Avebury Nickel Project.
    David Deitz, Director and CFO said" These funds will put us in a very
strong financial position as we move closer towards production by the end of
the year. Tony Howland-Rose Chairman of Allegiance added" Jinchuan have been
very supportive of our project and have now asked for the rest of our nickel
in Tasmania. We welcome them as our major shareholder"

    A full copy of this announcement is available on the Allegiance website.

    CONTACT:  Tony Howland-Rose, Chairman

              +612 9397 7777 or
              +61 418 972 112


For further information:

For further information: Tony Howland-Rose, Chairman, +612 9397 7777 or 
+61 418 972 112

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