SOURCE: Australian Forest Industries Inc.

September 19, 2006 08:00 ET

Australian Forest Industries, Inc. Announces Signing of Definitive Agreements for Acquisition of Copper Projects

BAY CITY, MI -- (MARKET WIRE) -- September 19, 2006 -- Australian Forest Industries, Inc. (OTCBB: AUFI) announces the following.

1. On September 18, 2006 AUFI executed definitive agreements with:-

(a) Simba Mines Inc for the acquisition of its subsidiary Simbajamba Mines Limited for US$41,547,000

(b) Bongani International Group Limited (BIG) for the acquisition of its subsidiary Rockbury Properties Limited for US$38,453,000.

As provided in the original Letter of Intent covering this transaction, on closing AUFI will take over the outstanding loan balances between Simba Mines Inc and Simbajamba Mines Limited and between Bongani International Group Limited and Rockbury Properties Limited.

2. The drafting of documents for the next stage is in progress, viz

(a) The reverse stock split of the issued share capital of AUFI from 257,600,680 common shares to 501,249 common shares.

(b) The change of name of AUFI to Zebra Copper Inc.

(c) The sale of Integrated Forest Products Pty Ltd by AUFI to Australian Forest Industries Limited (AFIL).

3. Upon completion of the sale to AFIL, Colin W. Baird CFO, Anthony R. Esplin Vice President, Norman W. Backman COO and Roger K. Timms Vice President will resign as directors and be replaced by the following Board.

        Ian Egan                   CEO
        Chris Page                 Director
        Tim Price                  Director
        David Furlong              Director
        Teddy Lourenco de Almeida  Non-executive Director
        Luis Cupenala              Non-executive Director
        Mark Smyth                 Director/Treasurer/Secretary

  Michael B. Timms will remain as Chairman of the Company.
Forward-Looking Statements

This news release includes comments that may be deemed forward-looking within the meaning of the safe harbor provision of the U.S. Federal Securities Laws. These include, among other things, statements about expectations of future transactions or events, revenues, sales of products and performance. Forward-looking statements are subject to risk and uncertainties that may cause the company's results to differ materially from expectations. These risks include the company's ability to complete the transactions, which remains subject to a due diligence review by both parties, obtaining any regulatory approvals, having necessary financing in time to meet contractual obligations, developing appropriate strategic alliances, raising working capital, building a functional infrastructure, and other such risks as the company may identify and discuss from time to time. Accordingly, there is no certainty that the company's plans will be achieved.

Contact Information