Zinifex`s Offer for Allegiance Opens

Zinifex Limited (ASX: ZFX.AX) (“Zinifex”) announced an off market all cash takeover offer (the “Offer”) for all of the issued ordinary shares of Allegiance Mining NL (ASX: AGM.AX) (“Allegiance”) by its subsidiary Zinifex Australia Limited.

The Offer is now open and capable of acceptance following the dispatch of the Bidder’s Statement to Allegiance shareholders on 3 January 2008.

Under the two tiered Offer structure, Zinifex is offering Allegiance shareholders $0.90 cash per share. This Offer will be increased to $1.00 cash per share for all Allegiance shareholders if Zinifex obtains a relevant interest of more than 30% of Allegiance shares, or if the Allegiance Board of Directors recommends the Offer.

Zinifex’s Chief Executive Officer (elect) Andrew Michelmore said “Zinifex’s Offer is compelling for Allegiance shareholders, providing an immediate opportunity to realize a substantial all-cash premium for their investment.”

“As with any resources project, there are significant risks involved in commissioning and operating a single site mine such as Avebury. We also recognise that substantial additional investment will be needed to ensure that the full potential of the Avebury nickel project is realised.”

“We believe that Zinifex’s Offer recognises the value of Allegiance’s Avebury development project and offers an attractive and risk-free premium to Allegiance shareholders.”

For further information please contact:
Martin McFarlane
Group Manager – Investor & Community Relations
Tel: 61 417 543 638
Email: martin.mcfarlane@zinifex.com

Matthew Foran
Manager - Stakeholder Relations
Tel: 61 3 9288 0456 or 61 409 313 637
Email: matthew.foran@zinifex.com