Letter to Shareholders

RNS Number:2053L
Aztec Resources Limited
30 October 2006

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

30 October 2006

                      Letter to shareholders

The Company advises that a letter has been mailed to shareholders today, the
content of which is set out below.

For further information please contact:

Aztec Shareholder Information Line
Australian Callers: 1800 602 244
International Callers: [phone]


Dear Shareholder

There has been significant speculation and commentary in the press recently
involving Aztec, its financial position and the status of the Mount Gibson
Offer.

I would like to take this opportunity to provide an update for you.
  * Aztec remains on track with its development of the Koolan Island Iron
    Ore Project. We still expect first production in December 2006 with the
    first shipment of iron ore scheduled for early 2007.
  * A Second Supplementary Target's Statement announcing credit approval for
    a A$100 million finance facility has also been sent to you with this letter.
    The granting of these facilities will ensure Aztec is well positioned to
    complete the development of the Koolan Island Project and commence
    operations on schedule.
  * On the basis of the above developments, Aztec Directors believe your
    company is better placed than at any other time in its history. Therefore,
    your Directors have no reason to alter their previous recommendation - that
    you REJECT the inadequate Offer from Mount Gibson.

On 26 October 2006, Mount Gibson announced that it had declared the Offer
unconditional and had extended the Offer to Friday 3rd November 2006. This does
not have any impact on your Directors' recommendation for shareholders to REJECT
the Offer.

As of 26 October 2006, Mount Gibson had only received acceptances for 1.68%(1)
of Aztec shares (excluding acquisition and acceptances from Aztec's previous
major shareholder, Cambrian Mining Plc). We thank you for your loyalty and urge
you to continue your support for Aztec in the face of the opportunistic bid from
Mount Gibson. We continue to remain focused on bringing the Koolan Island
Project into production for the benefit of all Aztec shareholders.

If you have any questions, please do not hesitate to call the Aztec Shareholder
Information Line on 1800 602 244 (Australian callers) or [phone]
(International callers).

Yours faithfully


Ian Burston AM
Chairman


(1) 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.
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