BUSINESS

Australian Zircon NL is a publicly company listed on the Australian Stock Exchange Limited.

ASX Code:AZC

The Company's prime asset is an interest in the Murray Zircon Joint Venture which operates the Mindarie Zircon Mine, located 148km east of Adelaide, South Australia. This is principally a zircon mine which will also produce titanium products. Murray Zircon also holds an exploration tenement portfolio covering over 11,000 km² within the Murray Basin.

In January 2004 the Company entered into a Joint Venture Agreement with Austpac Resources NL in respect of the WIM150 deposit, located in the western Victorian Murray Basin. Australian Zircon can earn an 80% participating interest by completing a Bankable Feasibility Study on the deposit.

The Company's main shareholder is DCM DECO metal GmbH. DCM is an international marketing and trading company, head-quartered in Austria.

HISTORY

The Company began life as Roehampton Resources NL, a listed gold explorer which was incorporated in Perth, Western Australia in March 1994. In 1996 the Company changed its name to Resource Development Corporation NL.

In June 1998 Resource Development Corporation NL entered into a joint venture with Steiner Holdings Pty Ltd (controlled by Mr David Clarke) to earn an interest in that company's mineral sands exploration leases in the South Australian portion of the Murray Basin. It changed its name to Murray Basin Minerals NL in late 1998 to reflect a change in strategic direction.

In October 2000 Steiner Holdings Pty Ltd was acquired subject to shareholder approval at a meeting called for later in 2000. The name then changed to Southern Titanium NL in late 2000. The Company most recently changed its name to Australian Zircon NL on 30 November 2004 to better reflect the Company's primary product.

Since 1998 the Company has successfully applied for and acquired several leases in the South Australian portion of the Murray Basin to complement the Steiner leases as well as leases in Victoria and New South Wales.

In January 2001 the company sold its remaining gold exploration interests to Quaestus Limited. The consideration of 5.4m shares in Quaestus was distributed gratis to certain of the Company's shareholders. The shares were issued at a ratio of 1:10 to the Company's shareholders with at least 20,000 shares (excluding the top 20 shareholders who did not participate), of 2:3 to shareholders with 15,000-19,999 shares and of 1:1 for shareholders with less than 15,000 shares.

Development of the Company's Mindarie mine commenced in 2006 with production of the first shipment in November 2007. Due to exchange rate rises and higher than expected costs, the mine was placed on Care and Maintenance in October 2009.

In November 2010, the Company signed an agreement with Orient Zirconic Resources (Australia) Pty Ltd which gave Orient Zirconic an option to enter into a joint venture with the Company over its Mindarie and/or WIM150 assets. In March 2011, Orient Zirconic elected to enter into a joint venture for the Company's assets except for WIM150.