Macarthur Minerals Limited
TSX VENTURE : MMS

Macarthur Minerals Limited

December 18, 2008 13:37 ET

Macarthur Minerals Limited: $5 Million Extension Fee Committed by Minmetals Mining to Partner LPD in $C100M Purchase of Further 50% Interest in Lake Giles Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 18, 2008) - Macarthur Minerals Limited ("MMS") (TSX VENTURE:MMS) announces that the right to acquire a 50% interest in Internickel Australia Pty Ltd ("Internickel"), between MMS and LPD Holdings (Aust) Pty Ltd ("LPD") has been extended until 27 February 2009 ("Extended Date").

MMS, LPD and LPD's investment partner Minmetals Mining Corporation Limited ("MMCL") have agreed to extend the acquisition date to allow MMCL, LPD and Internickel sufficient time to agree on documentation to entitle MMCL to acquire a 20% interest in Internickel from LPD and to assume the right (currently held by LPD) to ultimately acquire a further 50% interest in Internickel for CAD$100 million. LPD and MMCL have committed to MMS to use their best endeavours to finalise the required documentation by 23 December 2008.

If the further transaction documentation is not completed by 23 December 2008 MMCL has agreed to pay MMS a CAD$5 million refundable deposit by no later than 31 January 2009. On exercise of the right to acquire the additional 50% of Internickel the deposit shall be deducted from the total purchase price of CAD$100 million.

Subject to and following completion of the above arrangements, MMCL will hold 70%, LPD will hold 10% and MMS will retain a 20% interest in Internickel.

If the further documentation involving MMCL is not entered into and LPD does not exercise its current right to acquire the 50% interest in Internickel on or before the Extended Date, MMS shall retain its 70% interest in Internickel and LPD shall retain the remaining 30% interest.

On behalf of the Board of Directors,

MACARTHUR MINERALS LIMITED

David K. Barwick, President, Chairman & CEO

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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