AZR Aztec Res.

RNS Number:0759L
Aztec Resources Limited
26 October 2006

Aztec Resources Limited ("Aztec" or "the Company")

26 October 2006

A$100 MILLION DEBT FINANCE FACILITY APPROVED

Aztec Resources Limited (ASX and AIM code: AZR) ("Aztec") is pleased to announce
it has received credit approval from the banking syndicate for its A$100 million
finance facility to fund the continued development of the Koolan Island Iron Ore
Project.

The banking syndicate comprises:

   * Westpac Banking Corporation;
   * Bank of Scotland International (Australia) Limited; and
   * The Bank of Tokyo-Mitsubishi UFJ Ltd.

The A$100 million facility will consist of:

   * a senior debt facility of $A54 million (to be drawn down in US$(1));
   * a cost overrun facility of $A10 million (to be drawn down in US$);
   * a working capital facility of A$30 million; and
   * an environmental bond facility of A$6 million.

As previously announced, the facility will be used to meet the balance of
development expenditure commitments and ongoing working capital requirements for
Aztec's Koolan Island Iron Ore Project.

Aztec Chairman Ian Burston said:

"Securing credit approval has been widely anticipated by the market and
represents a significant milestone in Aztec's development as an iron ore
producer. Securing a A$100 million finance facility is a major vote of
confidence in Aztec's Koolan Island Iron Ore Project and the Aztec management
team from a syndicate of large and well credentialled banks.

Aztec is now well positioned to deliver a high quality iron ore project to its
shareholders which is on track for the commencement of mining and stockpiling of
ore by the end of the year and first shipments in early 2007."

The first tranche of the facility of approximately A$20 million is expected to
be available for drawdown on Tuesday, 31 October 2006 subject to meeting typical
conditions precedent, including execution of formal facility documentation. The
remainder of this facility will be available for drawdown as soon as a condition
subsequent relating to the final environmental approval has been met. This
approval is expected to be obtained within the next two weeks.

Takeover Update

The credit approval provides a strong foundation to enable completion of
construction and commencement of operations at the Koolan Island Iron Ore
Project. Accordingly, Aztec directors have no reason to change their previous
recommendation and continue to recommend that shareholders REJECT the inadequate
offer from Mount Gibson.

Aztec Directors are of the opinion that the majority of Aztec shareholders
continue to support Aztec and its Directors' recommendation. Mount Gibson has
extended its takeover offer for Aztec four times and as at 25 October 2006, had
received acceptances of 1.65%(2) (excluding acquisitions and acceptances from
Aztec's previous major shareholder Cambrian Mining Plc).

Following receipt of the credit approval, Aztec has requested that the
suspension of trading in Aztec's shares be lifted with immediate effect.

Directors will keep shareholders informed of developments as they arise and
encourage shareholders, should they have any questions, to call the Aztec
Shareholder Information Line on 1800 602 244 (Australian callers) or +61 8 6218
4220 (International callers).

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
                                            Tel: +61 8 9485 1254
UK                                          Mob: +61 (0) 417 944 616
Fiona Owen, Grant Thornton                  E:whazeldine@purplecom.com.au
+44 (0) 870 991 2318 

--------------------------

(1) The senior debt facility and cost overrun facility will be drawn down in US$
and will repaid from Aztec's US$ revenues creating a natural hedge.

(2) Adjusting for the issue of 77.78 million shares to Australian Royalties
Corporation Pty Ltd, which was announced to the Australian Stock Exchange on 24
October 2006.



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

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