US$45 Million Funding

RNS Number:9124J
Albidon Limited
13 December 2007


                                                                         Level 1
ALBIDON LIMITED                                                      62 Colin St
                                                               West Perth   6005
                                                               Western Australia
                                                                ARBN 107 288 755

                                                            Tel: +61 8 9211 4600
                                                           Fax:  +61 8 9211 4699 
                                                         Email: info@albidon.com
                                                                   ASX Code: ALB
                                                                   AIM Code: ALD



14 December 2007





US$45 MILLION FUNDING FROM JINCHUAN GROUP LIMITED, ZCCM INVESTMENTS HOLDINGS PLC
                              AND BARCLAYS CAPITAL



HIGHLIGHTS:



  * Albidon Limited has completed a placement with Jinchuan Group Limited 
    ("Jinchuan") and ZCCM Investments Holdings Plc ("ZCCM-IH") to raise US$25
    million at a price of US$2.95 (A$3.35/ �1.45) per share.



  * The Company has also secured a further US$20 million in financing from
    Barclays Capital ("Barclays") which has been provided on the same terms as
    their initial tranche of funding.



  * The above funding from Jinchuan, ZCCM-IH and Barclays fulfils the
    remaining funding required for development of the Munali Nickel Project in
    Zambia and will also ensure Albidon retains sufficient funds for
    exploration, increased drilling activities and business development
    activities.





Munali Nickel Project



The Munali Nickel Project (100% Albidon) is located approximately 60 kilometres
south of Zambia's capital city Lusaka. The Munali Project area comprises the
Enterprise Deposit and a number of other nickel prospects around the Munali
intrusion, the most advanced of which is the Voyager prospect along strike from
Enterprise.





US$15 Million Placement with Jinchuan



The Company is pleased to announce it has completed an agreement to place
5,084,746 shares at US$2.95 cents each to Jinchuan Group Limited ("Jinchuan") to
raise US$15 million (A$17 million). This placement to Jinchuan was done at a 24%
premium over the 30 day VWAP for the month of November for Albidon Shares.



Jinchuan is China's largest producer of nickel, cobalt and platinum group metals
and is a major producer of copper. The Jinchuan Group's current nickel
production is approximately 100,000 tonnes per annum, with a target to reach
150,000tpa by the year 2010. The investment in the Munali Project is a key part
of Jinchuan's strategy to meet this goal.





US$10 Million Placement with ZCCM-IH



The Company is also pleased to announce it has completed an agreement to place
3,389,831 shares at US$2.95 cents each to ZCCM-IH to raise US$10 million (A$11
million). This placement has been done at a 24% premium over the 30 day VWAP for
the month of November for Albidon Shares.



ZCCM-IH is an investment holding company which is listed on the Lusaka Stock
Exchange and quoted on the London and Euronext Stock Exchanges. The majority of
its investments are held in the copper mining sector of Zambia. The Company's
shareholders are the Government of the Republic of Zambia (GRZ) with 87.6%
shareholding and private share holders with 12.4%. ZCCM-IH holds equity
investments in many Zambian mining organisations including Equinox Minerals
Limited, Chambishi Metals Plc, Chibuluma Mines Plc, Kansanshi Mining Plc,
Konkola Copper Mines Plc, Luanshya Copper Mines Plc, Mopani Copper Mines Plc,
Maamba Collieries Limited, NFC Africa Mining Limited and Ndola Lime Ltd.  It
also holds an equity investment in a private power distribution company,
Copperbelt Energy Corporation Ltd.





US$20 Million Senior Debt Financing

The European Investment Bank ("EIB") and Barclays Capital ("Barclays") were
mandated to act as joint Lead Arrangers to provide a financing facility for
Munali of up to US$60 million, as announced in January of this year.

Barclays have advised that they have now received formal credit approval to
provide a further US$20 million in senior debt funding for the Project. Together
with the equity capital raising of US$25 million with Jinchuan Group and
ZCCM-IH, this completes the financing arrangements required for development of
the Munali Nickel Project.

The key features of this increased Senior Debt are as follows:

*  Further Loan amount of US$20 million.

*  Loan tenor of six years.

*  Loan is on the same terms as the previous tranche from Barclays Capital.

The funding is subject to satisfaction of customary due diligence by Barclays
and EIB.





Forward Programme

*  Complete the construction of the Munali concentrator plant - scheduled
   for mid Q2 - 2008

*  Continue development of the Enterprise Decline.  The target is to
   intersect the first production levels March 2008, in time for the first ore 
   into the concentrator in mid Q2 - 2008

*  Complete initial resource estimate on the Voyager prospect.



If you have any queries please contact the Chief Financial Officer, Nicholas Day
or Managing Director, Dale Rogers on +61 8 9211 4600 or email nickd@albidon.com.



Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen
+61 8 9480 2500.



Additional information may also be viewed on Albidon's website at
www.albidon.com










                      This information is provided by RNS
            The company news service from the London Stock Exchange
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