ACMC Director enters into iron ore purchase in WA.

Macarthur Minerals Announcement

10 February 2008

Macarthur Minerals Limited (TSXV-MMS) is pleased to announce it has entered into a Heads of Agreement with LPD Holdings (Aust) Pty Ltd, Mr Edward Kwok, Chairman and Managing Director of Australia China Metal Corporation Pty. Ltd., potentially worth CDN $110 million to assist in the development of the Lake Giles Magnetite iron ore and base metals project in Western Australia.

The agreement could result in LPD Holdings acquiring an 80 percent interest in Macarthur Minerals' wholly-owned subsidiary Internickel Australia Pty Ltd, which owns the 1,155 kmÂ² project located in the emerging Yilgarn iron ore province.

Macarthur Minerals Chairman and Chief Executive David Barwick said LPD Holdings' commitment to the project was a major boost for the company. "Having identified the iron ore sector as one with significant potential for exploration and mining, we are looking forward to working with LPD Holdings to ensure this potential becomes a reality," he said. "

Australia is a world leader in iron ore production and the Lake Giles project is well placed to serve seaborne markets, especially with Asian steel companies seeking to establish long-term supply arrangements."

Mr Kwok's interest in iron ore reflects his vested interest in Australia China Metal Corporation Pty. Ltd., which plans to establish a manufacturing facility in SE Queensland for the production of Ductile Iron pipes and fittings.

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