AZR Aztec Res.

RNS Number:8575K
Aztec Resources Limited
23 October 2006

23 October 2006


Aztec Resources Limited

         AZTEC CLOSE TO AGREEMENT WITH AUSTRALIAN ROYALTIES CORPORATION

Aztec Resources Limited (ASX and AIM code: AZR) ("Aztec") is pleased to announce
negotiations are at an advanced stage over certain rights held by Australian
Royalties Corporation Pty Limited ("ARC"), the original vendor of 30% of the
Koolan Island Iron Ore tenements.

On 19 October 2006, Aztec announced that its banking syndicate examining the
provision of A$100 million in finance facilities to Aztec was not in a position
to finalise the facilities unless the risk of ARC exercising its repurchase
right was extinguished and ARC's caveats over 30% of the Koolan Island tenements
were removed.

Following extensive negotiations between Aztec and ARC, Aztec is pleased to
confirm that it is close to reaching agreement on commercial terms with ARC. On
the basis of progress made on Friday and over the weekend, Aztec believes that
those terms will be finalised and formal documentation will be able to be
executed during the course of today. Aztec will make a further announcement once
the arrangements with ARC have been completed and expects to be in a position to
do so before the start of trading on Tuesday, 24 October 2006.

Aztec Chairperson Ian Burston said the last few days had delivered fruitful
negotiations with ARC.

"Once arrangements with ARC are finalised, Aztec will then proceed to obtain
credit approval for its finance facilities and deliver another positive
milestone for Aztec shareholders," Mr Burston said.

Aztec is keeping the banking syndicate informed of the progress of its
negotiations with ARC, to ensure credit approval can be obtained as soon as
possible following completion of documentation with ARC.

Since a trading halt can only continue on the ASX for a maximum of two trading
days, Aztec has requested that its shares be suspended from trading on the ASX
as from today, Monday, 23 October 2006. This has been done to give Aztec time to
complete arrangements with ARC, to prepare an announcement of the terms of those
arrangements and to substantially complete the credit approval process.

In the meantime, Aztec will continue to keep the market informed of progress
with these matters.

For further information please contact:

Aztec Shareholder Information Line                Media Enquiries

Australian Callers 1800 602 244                   Purple Communications

International Callers: +61 8 6218 4220            Warrick Hazeldine

UK                                                Tel: +61 8 9485 1254

Fiona Owen, Grant Thornton                        Mob: +61 (0) 417 944 616

+44 (0) 870 991 2318                              E:whazeldine@purplecom.com.au


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