Update Regarding Proposed Downstream Offer for Extract Resources

SOUTH PERTH, Australia, Jan. 6, 2012 /CNW/ - Extract Resources Ltd (ASX/TSX/NSX: EXT) ("Extract" or the "Company") notes the announcement on the London Stock Exchange by Taurus Mineral Limited ("Taurus"), an entity owned by CGNPC Uranium Resources Co., Ltd. ("CGNPCURC") and the China-Africa Development Fund ("CADFund"), advising that offer documentation has been posted to shareholders of Kalahari Minerals PLC ("Kalahari"). The Kalahari offer will remain open for acceptances until February 2, 2012, unless extended by Taurus.

As previously announced (ASX release December 9, 2011: "Proposed downstream cash offer for Extract by CGNPC-URC and CADFund"), Taurus has been granted relief by the Australian Securities and Investments Commission to acquire an interest of more than 20% of Extract's shares provided that, among other conditions, Taurus makes a downstream offer for Extract. Offer documentation must be dispatched to Extract shareholders within four weeks of Taurus having received acceptances of the Kalahari offer in respect of more than 50% of the voting rights in Kalahari.

Extract's Independent Directors are continuing to review all available opportunities to maximise shareholder value, and intend to make a recommendation in relation to the proposed Taurus offer for Extract if and when such an offer is made to Extract shareholders.

Copies of the Taurus announcement and the Kalahari offer document are available on Kalahari's website: www.kalahari-minerals.com.

About Extract Resources

Extract Resources Ltd is an international uranium exploration and development company whose primary focus is in Namibia. The company's principal asset is its 100%-owned Husab Uranium Project which contains the fourth largest uranium only deposit in the world. Extensive exploration potential also exists for new uranium discoveries in the region. Extract Resources is listed on the Australian (ASX), Toronto (TSX) and Namibian (NSX) Stock Exchanges. 

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