15 October 2012
The Manager
Company Announcements Office
Australian Securities Exchange
20 Bridge Street
SYDNEY NSW 2000

ASX ANNOUNCEMENT Suspension Update

On 1 October 2012 UXA Resources Limited's (ASX:UXA) ("Company") shares were suspended from official quotation on ASX as a result of UXA not lodging, with ASX by the due date, it's annual audited financial accounts for the financial year ending 30 June 2012. Under the ASX Listing Rules UXA's shares will remain suspended until such time as the financial accounts are lodged with ASX.
The remaining issues to be resolved before the finalisation of the full year accounts relate primarily to the refinancing of UXA's convertible note facilities. Finalisation of the Company's full year accounts is dependent on UXA refinancing the existing convertible notes which are discussed in below.

Convertible Notes

UXA currently has on issue two convertible notes with separate note-holders and with balances and expiry dates as follows:
1. $779,000 expiring 30 September 2015, and
2. $500,000 expiring 12 April 2014.
A detailed summary of the material terms of each convertible note can be found in Schedule 1 and
Schedule 2 of the Notice of Meeting plus Proxy lodged by UXA with ASX on 28 May 2012.
As a result of the failure to lodge the full year 2012 financial accounts with ASX and the resulting suspension of UXA's shares from official quotation, UXA is in default under both convertible notes and has advised the respective note-holders of the default. The consequences of a default under the convertible notes are that either of the note-holders may declare the face value of their respective convertible notes and any accrued interest to be immediately due and payable.
UXA has been in constant contact and negotiation with both note-holders and neither note-holder has advised the Company that it intends to call in their respective convertible notes at this time. The Company is currently working with both note-holders to explore all options.

Funding Arrangements

The Company is undertaking a number of capital raising initiatives, including the potential sale of assets to fund working capital and reduce or eliminate entirely the Company's debt. UXA has been approached to consider selling certain assets and is currently considering the sale of all or part of the GAA Wireline contracting business and certain exploration tenements. RB Milestone Group, LLC has been selected to advise the Company with regards to its financing options in North America.

43a Fullarton Road Kent Town SA 5067 Australia T: +61 8 8363 7970 F: +61 8 8363 7963 E: info@uxa.com.au W: www.uxa.com.au
The Company expects it will take 1 - 2 months to finalise its planned capital raising and asset sale activities and submit its annual financial accounts to the ASX, as required for the resumption of trading. Given that discussions with potential investors are incomplete, remain on-going and are commercial in confidence, UXA is not yet able to provide the market more details at this time. However, the Company plans to release updates and announcements as additional information becomes available.
The directors remain confident that UXA will be able to raise additional funds in the foreseeable future. Unless the note-holders declare their respective notes due and payable, UXA's directors are of the opinion that the Company will be able to meet its debt obligations as and when they fall due.

Exploration and GAA activities

In the meantime, day-to-day operations are continuing as usual at UXA. Drilling at Nabarlek is the Company's current exploration focus, and results will be announced in the coming weeks. The GAA Wireline Business is also fully operational, fulfilling its contracts in Qld, SA, WA and the USA and continues to perform much better than this time last year.
UXA plans to release all necessary statements as soon as they are available, and subsequently send the ASX an official request to lift the trading suspension once the refinancing activities and the annual audited financial accounts are completed. The directors acknowledge that a forth- coming resolution has taken longer than anticipated, and wish to thank shareholders for their patience in this matter.
Most importantly, UXA aims to have its suspension from the official list lifted as soon as possible so share trading can resume and has concentrated its attention on achieving that end.
The Company will provide a further update to the market as soon as it is in a position to do so. On behalf of the Board
Graham Seppelt Company Secretary Ph: 0419 035 297

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