Finders Resources Announcements

Finders Resources Limited
12 December 2007

FOR IMMEDIATE RELEASE: 12 DECEMBER 2007

Upon release of this announcement, Finders shares recommenced trading on the
ASX.
FINANCING OF A$15.8 MILLION FOR WETAR COPPER PILOT PLANT AND WORKING CAPITAL
Highlights
O Raising approximately A$ 15.8 million to be applied to the construction of a
heap leach SX-EW pilot plant for the Wetar copper project and additional
working capital
O Metals trading company Tennant Metals Pty Ltd to subscribe US$5 million for
shares at A$1.10 per share and provide a secured loan facility of US$5
million
O Placement of 4 million shares to institutional and sophisticated investors
at A$1.10 per share through Southern Cross Equities
O Production from pilot plant expected to commence July 2008 at 5 tonnes per
day of copper cathodes

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Finders Resources Limited ("Finders") is pleased to announce that it has entered
into agreements to raise a total of approximately A$15.8 million before
financing charges, to be applied to construction of a heap leach SX-EW pilot
plant for the Wetar Copper Project and additional working capital.
Production from the pilot plant is expected to be around 5 tonnes per day from
July 2008, as a precursor to full scale production of 20-25,000 tpa of cathode
copper from mid 2009. The current Wetar resource base of 248,000 tonnes of
contained copper (9.8Mt @ 2.5% Cu) in two low strip ratio deposits supports an
expected mine life of over 8 years at this production rate. However, Finders
believes there is excellent exploration potential on Wetar Island to delineate
further copper rich massive sulphide deposits and significantly expand the
current resource base and mine life.
The financing is in the form of a placement of 4 million shares at A$1.10 per
share through Southern Cross Equities, and an agreement with Tennant Metals Pty
Ltd (Tennant Metals), subject to formal documentation, whereby Tennant Metals
and its associated shareholder, Meridian International Capital Limited
(Meridian), will subscribe for US$5 million in shares at A$1.10 per share, and
will also provide a secured loan facility of US$5 million, in return for the
off-take rights for all copper production from the Wetar pilot plant, plus
off-take rights for 10% of copper production from the planned full scale mining
operation at Wetar.
Based on the current US$:A$ exchange rate of around 0.88, a total of around 9.16
million shares will be issued increasing Finders total issued share capital to
approximately 74.8 million shares. The expected 5.16 million shares to be
issued to Tennant Metals and Meridian will, when added to their existing
interests, give them a holding of approximately 9.5% in Finders' expanded share
capital base. Finders will apply for the new shares to be admitted to trading
on both the ASX and the AIM market.
Finders is the operator of the Wetar Copper and Ojolali Gold-Silver Projects in
Indonesia and holds an investment in Geopacific Resources NL, an ASX-listed
company.
Tennant Metals is an Australian domiciled, privately owned metals trading
company with a long history in Australian and international mining and trading,
tracing back to 1966. It has offices in Sydney, China and Taiwan, and agency
arrangements in South Africa, Turkey, Vietnam, Thailand, USA, Chile, Peru and
India.
Finders Executive Chairman Dr Russell Fountain said today: "This financing
represents a significant milestone for the Company in its move to producer
status. The funds will enable us to complete fast track development of the Wetar
Copper Project pilot plant, which will produce cash flows for the company from
mid 2008, and also allow us to continue an aggressive exploration program at
Ojolali, aimed at defining a start-up oxide gold resource.
Finders directors believe that the association with Tennant Metals will bring
significant benefits to the company as we move to producer status and also
welcome the continued strong support of Southern Cross Equities in this fund
raising."
Further Details on the Tennant Metals Debt Facility

The key terms of the US$5 million secured debt facility with Tennant Metals are
as follows:
? Availability subject to final due diligence by Tennant Metals and agreement
of final documentation;
? Available for drawdown up to 30 June 2008 and repayable on 31 December 2009
with earlier repayments only required out of any cash flow available for
debt service or proceeds received from the project financing of the full
scale development of the Wetar Project, or otherwise at Finders' option;
? Tennant Metals appointed to sell all of the off-take from the pilot plant
stage and then 10% of the full scale life of mine production for the Wetar
project.
For further information please contact:
Finders Resources Ltd:

Russell Fountain, Executive Chairman, +61 (0) 2 9211 8299

Chris Farmer, Managing Director, cbf@findersresources.com

Financial PR:

Doug Macdonald, +61 (0) 424 255 959, Capital Group (in Australia)

Paddy Blewer or Nick Elwes, 020 7457 2020, College Hill (in the UK)
RFC Corporate Finance Ltd (Finders' Nominated Adviser for the AIM market):

Rob Adamson, +61 (0)2 9250 0000

Stuart Laing, +61 (0)8 9480 2506, stuartl@rfc.com.au
Background:

Finders Resources Ltd, (Finders) first listed on AIM in March 2006, and on the
ASX, raising AUD 6 million, on June 8 2007.

Finders is the operator of the Wetar Copper (73% and earning), and Ojolali
Gold-Silver Projects (72% with option) in Indonesia, and holds an investment in
Geopacific Resources NL, an ASX-listed company with active exploration programs
for gold and copper in Fiji.

At the Wetar Copper Project, Finders has previously announced Measured,
Indicated and Inferred Resources at a 0.5% copper cut-off grade, of 9.8 million
tonnes at 2.5% copper for 248,000 tonnes contained copper in two deposits, Kali
Kuning and Lerokis. The company is planning to develop an open cut heap leach
SX-EW copper mining operation to produce 20-25,000 tonnes of cathode copper per
year from mid 2009. A key component of the feasibility study for this project is
the construction of a semi-commercial scale test heap and pilot plant, designed
to produce 5 tonnes per day of copper cathode from July 2008, with an estimated
capital cost of US$6.25 million.

At the Ojolali Project, Finders has previously announced Inferred Resources at
the Jambi Oxide gold deposit (3.2 Mt @ 1.0 g/t Au, 6.9 g/t Ag at a 0.5 g/t Au
cut-off, and including mining dilution) and Inferred Resources at the Tambang
Prospect (7.9 Mt @ 167g/t Ag and 0.7 g/t Au at a 1 g/t Au equivalent cut-off
using drilling data from a previous explorer).

Finders' believes that the Ojolali project has strong potential to generate
short-term cash flow through open pit CIL/CIP development of the gold resource
at the Jambi Oxide gold deposit. Other prospects have outstanding potential for
the discovery of additional resources using modern geophysical techniques to
optimize drill targeting.

For further information on results previously reported and a full resource
statement please visit our website www.findersresources.com
Competent Person Statement

The Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (the 'JORC Code') sets out minimum standards, recommendations
and guidelines for Public Reporting in Australasia of Exploration Results,
Mineral Resources and Ore Reserves. The information contained in this
announcement has been presented in accordance with the JORC Code and references
to "Indicated" and "Inferred Resources" are to those terms as defined in the
JORC Code.

Geological and Mineral Resource information in this announcement is based on
information compiled by Dr R Fountain who is a Fellow of the Australasian
Institute of Geoscientists and a Director of Finders. Dr Fountain has sufficient
experience that is relevant to the styles of mineralisation and types of
deposits under consideration and to the activity that he is undertaking to
qualify as Competent Person as defined in the JORC Code. He consents to the
inclusion in this announcement of the matters based on his information in the
form and context in which they appear.
This information is provided by RNS
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