RNS Number:0493M
Braemore Resources PLC
09 May 2005

9th May 2005



Braemore Resources Plc Signs Agreement to Acquire Western Australian based
Nickel Company



Braemore Resources Plc ("Braemore"), (AIM:BRR) has signed an agreement ("the
Agreement") to acquire Western Consolidated Nickel Pty Limited from Western
Australian based Atomaer Holdings Pty Limited ("Atomaer").



Western Consolidated Nickel Pty Limited ("WCN") (formerly Atomaer Technologies
Pty Limited) has an agreement with WMC Resources Ltd ("WMC") to conduct pilot
plant testwork and a definitive feasibility study, and to build and operate a
plant(s) using Atomaer process technology to extract and produce nickel from
sulphide tailings.

Historical records of plant metal balances indicate that approximately 350,000
tonnes of nickel metal are contained in sulphide tailings with grades of up to
0.5% Ni arising from flotation plants at nickel operations of WMC at Leinster,
Kambalda and Mt Keith over the last 30 years.

Christopher Lambert, Chairman of Braemore, commented:  "This acquisition will
position Braemore to become a significant global nickel producer.    Based on
current LME metal prices, the enlarged Group's in situ value of contained metal
is approximately USD $5.2 billion. We are now well positioned for future growth
and are pursuing bolt-on opportunities."

The acquisition of WCN by Braemore represents a substantial inventory of nickel
above ground, mined and milled, and a technology package with potential to
produce nickel product at less than US$1.00 per pound through brownfields
developments in one of the largest nickel provinces in the world.

The acquisition of WCN positions Braemore for potential growth as a medium sized
nickel producer with initial production of 10,000 tonnes to 20,000 tonnes of
nickel in a nickel sulphide product per year.

The Chairman of Atomaer, Mr David Humann, said that the Agreement with Braemore
follows a decision by Atomaer to place WCN in a position to fund the pilot plant
testwork, definitive feasibility study and development of commercial plants
through international capital markets.

Under the terms of the Agreement between Braemore and Atomaer,

(1)     Braemore will purchase all of the issued capital of WCN for a
consideration of 300 million ordinary shares and 305 million performance shares;

(2)     The performance shares may be converted to ordinary shares in Braemore
upon either:

(a)     WCN signing an exploitation agreement with WMC to proceed with the
development of the Project on the terms set out in the agreement with WMC; or

(b)     WCN proceeding with the development and mining of any other nickel
sulphide project introduced by Atomaer.

(3)     WCN will have the right to use the Atomaer technology package developed
for the nickel sulphide tailings under a technology license agreement with
Atomaer;

(4)     Braemore must complete a capital raising of GBP3 million within 120 days
to finance the testwork program, pilot plant and definitive feasibility study.

(5)     Atomaer will have the right to appoint 4 directors (including the
Chairman) to the Board of Braemore at completion; and

(6)     completion is subject to, amongst other things, due diligence and
approval of the Agreement by shareholders of Braemore.

Completion of the Agreement would result in Atomaer initially holding 54% of the
issued capital of Braemore.

Atomaer will continue with work on the nickel sulphide tailings project at
Leinster in accordance with the agreement with WMC while the transactions are
being completed.

The acquisition will be a reverse takeover within the meaning of the AIM rules
and, accordingly, the Company has requested trading in its shares on AIM to be
suspended pending publication of an AIM admission document.



                                     -ends-

For further information please contact:

Braemore Resources Plc    Nabarro Wells & Co Limited    Parkgreen Communications
Christopher Lambert,      Hugh Oram                     Justine Howarth

Chairman                  Director                      Director
+44 (0) 79 800 171 08     +44 (0) 207 710 74 00         +44 (0) 20 7493 3713












                      This information is provided by RNS
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