EDN Elkedra

    ELKEDRA DIAMONDS NL                                                       

                                                       Level 1, 130 Hay Street.

                                                                SUBIACO WA 6008

                                                        PO Box [insert details]

                                                     Telephone: +61-8-6380-2855

                                                     Facsimile: +61-8-6380-1644

                                                 E-mail: elkedra@elkedra.com.au

                                                   Web Site: www.elkedra.com.au

26 April 2007

Centralised Company Announcement Office

Australian Stock Exchange Limited

10th Floor, 20 Bond Street

Sydney, NSW 2000

Dear Sir/Madam,

CLARIFICATION:SPIN-OFF OF AUSTRALIAN URANIUM AND BASE METAL ASSETS

Due to a number of queries from shareholders following the announcement by
Elkedra Diamonds NL ("Elkedra") on Monday, 24 April 2007, the Directors wish to
clarify certain aspects of the pro-rata priority entitlement for Elkedra
shareholders in relation to the proposed spin off of Uramet Minerals Limited ("
Uramet").

As previously announced, Uramet intends to conduct an initial public offer ("
IPO") of 35,000,000 shares at 20 cents per share, to raise $7 million and apply
for listing on ASX. Elkedra currently holds and at the conclusion of the IPO
will retain 25,000,000 shares in Uramet which, at the conclusion of the IPO,
will be equivalent to 38.46% of the shares in Uramet. Subject to obtaining the
necessary approvals, Elkedra intends to make an in specie distribution of its
shares in Uramet to existing Elkedra shareholders within 12 months after a
successful ASX listing.

Of the 35,000,000 shares to be offered by Uramet, 8,750,000 shares will be
offered on a priority pro rata basis to Elkedra shareholders who on the record
date (which will be seven business days after lodgment of the IPO prospectus)
are either registered with an Australian address or are foreign registered
substantial shareholders with an interest of 10% or more in Elkedra ("Pro-Rata
Priority Offer").

There will be no requirement for an eligible shareholder to hold a minimum
number of Elkedra shares to qualify for participation in the Pro-Rata Priority
Offer. However, where a particular eligible shareholders' holding in Elkedra
results in an entitlement to apply for less than 2,500 Uramet shares (ie less
than a marketable parcel of shares - being $500 worth of shares), the Directors
of Uramet will retain discretion as to whether to accept or decline such an
application, having regard to factors including (without limitation) the need
to meet the spread requirements imposed by the ASX Listing Rules.

Further details in relation to Uramet's IPO will be set out in Uramet's
prospectus, which is expected to be lodged with the Australian Securities and
Investments Commission within the next fortnight and made available in order to
enable Uramet to conduct the offer. Uramet will apply for listing on the ASX
within 7 days of the date of the prospectus. Any person wishing to acquire
shares in Uramet will need to complete the application form accompanying the
prospectus. All eligible Elkedra shareholders will be sent a copy of the Uramet
prospectus together with a Pro-Rata Priority Offer application form. Any other
person wishing to obtain a copy of the prospectus should contact Uramet or its
Corporate Adviser, LinQ Corporate Pty Ltd following lodgment of the prospectus.

For and on behalf of the Board


M.D.J.Cozijn

Director/Secretary

END

Elkedra (LSE:EDN)
Historical Stock Chart
From Oct 2024 to Nov 2024

Elkedra (LSE:EDN)
Historical Stock Chart
From Nov 2023 to Nov 2024