Mineralogy amending its offer to purchase common shares of Waratah Coal Inc. and challenging Waratah's shareholder rights plan

    BRISBANE, Australia, Oct. 24 /CNW/ - Mineralogy Pty Ltd. ("Mineralogy")
announced today that it is amending its offer (the "Offer") to acquire, at a
price of $1.41 per share, 50.1% of the common shares of Waratah Coal Inc.
("Waratah", TSX-V: WCI), on a fully-diluted basis and taking into account the
Waratah common shares owned by Mineralogy and its affiliates.
    The amended Offer will be for all of Waratah's outstanding common shares,
other than shares held by Mineralogy and any of its affiliates. Mineralogy is
also extending the period during which the Offer is open for acceptance until
5:00 p.m. (Toronto time) on December 3, 2008. A notice of extension and
variation will be mailed to shareholders on or about October 27, 2008 and will
be available on www.sedar.com shortly.
    "Mineralogy's offer provides an opportunity for Waratah's shareholders to
sell their shares at a price established prior to recent market declines. From
the end of trading on October 2 to the end of trading on October 23, the
S&P/TSX Venture Composite Index decreased by approximately 34.6%, yet our
offer price remains unchanged", said Professor Clive Palmer, Mineralogy's
founder and Executive Chairman. Professor Palmer added, "We strongly disagree
with Waratah's repeated allegations that Mineralogy's offer is opportunistic
and point out that, at $1.41 per share, our offer price exceeds the $1.05
closing price of the shares on the TSX Venture Exchange on October 23, 2008 by
$0.36. This represents a premium of approximately 34%."
    Mineralogy also announced today that it has applied to the British
Columbia Securities Commission for an order to cease trade the shareholder
rights plan, more commonly known as a "poison pill", adopted by Waratah's
board of directors in response to the Offer.
    "The decision of whether or not to tender shares to our offer is best
left to Waratah's shareholders. Our actions today are intended to help ensure
that Waratah's shareholders are not denied the opportunity to exercise their
discretion in deciding whether or not to tender their shares to the offer,"
said Professor Palmer.

    About Mineralogy

    Mineralogy is a privately-held Australian resource company controlled by
Professor Clive Palmer that is engaged in the exploration for and development
of mineral resources. Mineralogy has extensive experience in implementing
large-scale resource development projects in Australia. For more information
about Mineralogy, visit the company's website at www.mineralogy.com.au.

    Forward Looking Information

    This news release may contain forward looking statements, being
statements which are not historical facts, including, without limitation,
statements regarding the proposed acquisition of Waratah common shares by
Mineralogy and discussion of future plans and objectives. There can be no
assurance that such statements will prove accurate. Such statements are
necessarily based on a number of estimates and assumptions that are subject to
numerous risks and uncertainties that could cause actual results and future
events to differ materially from those anticipated or projected. Mineralogy
disclaims any intention or obligations to revise or update such statements.

For further information:

For further information: please contact Professor Clive Palmer, at +61
4090 44489, or send inquires to mineralogy@mineralogy.com.au.

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