Neves Corvo Acqn Update

RNS Number:2140Z
Murchison United NL
29 July 2002

                                                      ASX, AIM and Media Release

                                                                    29 July 2002



NEVES CORVO ACQUISITION UPDATE

________________________________________________________________________________



Murchison United NL (ASX:MUR, AIM:MUU) Following shareholder approval at the
General Meeting on 10 July for the acquisition of a 49% interest in  Sociedade
Mineira de Neves Corvo, S.A. ("Somincor"), the Company has been working to
secure completion of the transaction.



In an announcement dated 10 July 2002 the Company advised that the acquisition
was expected to be completed by 31 July 2002 and that completion remained
conditional on, inter alia, the approvals, authorisations and consents of any
governmental authority or agency having been obtained.



The Board can now advise that despite the Company having completed an
underwritten issue to raise approximately A$64 million and agreeing the terms of
a US$35 million non-revolving facility with CIBC Capital Partners, it believes
that the necessary governmental approvals, authorizations and consents will now
not be obtained by 31 July 2002 as planned.



Consequently, the Placing Agreement entered into by the Company, Beeson Gregory
and Euroz Securities Limited to raise the A$64 million referred to in the
announcement dated 6 June 2002 has been terminated in accordance with its terms.



The Board continues to hold the view that this acquisition is in the best
interests of the Company and discussions are continuing with Rio Tinto and our
advisers in Portugal, Banco Finantia, to investigate all possible avenues for
completion of the transaction.



As a result of the termination of the Placing Agreement, the AIM Admission
Document published on 6 June 2002 with respect to the Company as enlarged by the
acquisition of a 49 per cent. interest in Somincor, is no longer valid.
Consequently the Company is now in contemplation of a reverse takeover for which
no AIM Admission Document has been published and trading in its Ordinary Shares
will be suspended in accordance with the provisions of Rule 13 of the AIM Rules.



Managing Director Paul Atherley commented "It is extremely disappointing that
after two years of effort the government approvals have not been forthcoming to
enable Rio Tinto to sell its minority interest in Somincor.



We have proceeded with this transaction on the sound advice that all necessary
approvals would be obtained. We have brought to the table a complete funding
package and have met all other requirements to enable completion.



We have sought urgent meetings with Rio Tinto and its advisers to obtain a clear
understanding of the situation and shall make a full release to the market once
this has been established."




For further information please contact:



Paul Atherley, Managing Director             Tim Blackstone
Murchison United NL                          Blackstone Business Communications
Telephone:     [phone]                [phone]
Facsimile:     [phone]                [phone]
Email:         [e-mail]         [e-mail]


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