Sale of Renison Bell

RNS Number:4366P
Murchison United NL
05 September 2003





                                                      ASX, AIM and Media Release
                                                                5 September 2003


Termination of negotiations with Allegiance Mining and sale of Renison Bell

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Murchison United NL ("Murchison" or "the Company") (ASX: MUR, AIM: MUU) today
announced that it had mutually agreed to terminate negotiations with Allegiance
Mining NL over the treatment of the Avebury Nickel deposit through the Renison
Bell mill.



As a result, the Directors expect that Renison Bell will be put up for sale
through a formal sale process. The Directors are of the view that given the
recent rise in LME tin prices to around US$5,000 per tonne against a flat
Australian dollar and the resurgence of the equity market raisings for junior
mining companies the potential interest in acquiring this well established
operation is now higher than it has been for several years.



Renison Bell is the world's largest producer of tin concentrates available for
toll smelting and has been in almost continuous operation for over 40 years. It
has a substantial inventory of tin resources, excellent infrastructure and was
restored to profitability during the March quarter at significantly lower tin
prices than those currently prevailing. The holding company Renison Bell Limited
has accrued revenue losses of over A$40 million.



The operations are currently on a care and maintenance programme funded by a
loan facility from the Tasmanian Government.



The Directors understand that an advisor is likely to be appointed to assist in
the divestment process of the operation on a going concern basis along with
Renison Bell's 50% interest in the Maroochydore Copper Project in Western
Australia.



Renison Bell Limited is a wholly owned subsidiary of the Company and was placed
into Voluntary Administration on 24 June 2003 with debts totalling approximately
A$42 million, A$22 million of which is owed to Murchison, A$5.2 million to
Government entities and A$14.8 million to trade creditors.



Renison Bell Limited has no bank debt and all creditors are unsecured. One
creditor holds a guarantee from Murchison and Renison Bell for an amount of
approximately $3.2 million. The Company is seeking to arrange a commercial
settlement of this obligation with this creditor.



The proceeds of any sale are expected to be applied to costs of the
administration, Renison Bell employee entitlements, government care and
maintenance funding and the balance to be distributed amongst creditors.



For further information please contact:



Paul Atherley, Managing Director
Murchison United NL
Telephone:       [phone]
Facsimile:       08 9321 7747




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