Finders Resources: Convertible note facility to raise up to $1.5m

(16 January 2008)--Finders Resources Limited is pleased to announce that it has entered into a Convertible Note Facility Agreement (?Facility?) with Resource Capital Fund IV L.P. (?RCF?). Under the Facility, RCF has agreed to provide the company with US$1.5 million, of which US$1.0 million will be made available on satisfaction of certain standard conditions precedent with the balance to be made available, subject to further conditions precedent, on or before 15 March 2009.

The proceeds from the Facility will be used for working capital purposes.

Executive Chairman, Russell Fountain, said ?RCF is a significant investor in Finders and we welcome their continuing support through this Facility. The funds from this Facility will place the company in a better financial footing as we move through the commissioning phase of the Wetar Demonstration Plant. We now have over 15,000 tonnes of ore under irrigation in the test heap; the heap is percolating well, with initial take-up of copper into solution in line with our expectations, and copper cathode production expected to commence by the end of January. The Company continues to assess several proposals to acquire second hand plant for the full scale development of the Wetar copper project, which could significantly enhance the project?s economics.?

The Company has also entered into loan agreements with four directors, Messrs Russell Fountain, Christopher Farmer, Robert Thomson and Stephen de Belle lending a total of AUD$714,000 to the Company. Subject to shareholders? approval, these unsecured loans may be converted by the Company into Finders shares.

Stephen Lonergan, the only director of the Company not involved in the above loan arrangements, considers that after having consulted with RFC Corporate Finance Ltd. the Company?s nominated advisor in relation to the AIM market, that the terms of the loan transaction and share conversion are fair and reasonable insofar as its shareholders are concerned and are at least as favourable to the Company as arms length terms.

The Company also advises that an updated presentation is available on its website. The presentation includes an overview of current activities at the Wetar Project and recent images of the Wetar Copper demonstration plant.

Attention is also drawn to a new research report on Finders by Green Leader Equities Research which is now available on the company website.

Background on Finders Resources
Finders, listed on AIM and ASX, is the operator of the Wetar Copper (?92% 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 Project in Maluku province, as part of a definitive feasibility study, a demonstration SX-EW plant with 5t per day copper cathode capacity is being installed and is permitted to process 100,000t of ore from the Kali Kuning deposit. The Company is targeting commercial production of 20-25,000 tonnes per year cathode by early 2010, subject to accelerated schedules for engineering design work and project funding.

At the Ojolali Project in Jambi province, Finders controls what it considers to be a major new epithermal gold district, and has been undertaking an extensive exploration program comprising detailed drilling to establish and initial mining resource, supported by extensive surface geophysical and geochemical surveys. 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 iambi Oxide gold deposit. (end of edited release)