Abra Mining Limited (“AML”) listed on the Australian Stock Exchange in April 2005 to explore and develop substantial base metal lead-silver-(zinc) and copper-gold mineralisation at the Company’s 100% owned Abra Deposit and surrounding Mulgul Project area. This project is located within a Proterozoic sedimentary basin province in central Western Australia that shares many characteristics with Proterozoic clastic, sediment-hosted, base metal terrains worldwide.

Since listing on ASX the Company has expanded its tenement holding in the Mid-West region and AML now holds title to or is earning interests in tenements with an area of more than 2,850 km2 (the South Bangemall Projects and Havelock Project). Positive results from AML’s drilling programmes at the Mulgul Project during 2005-2008 reinforce the potential for the definition of a significant base metal mine at Abra and for the region to emerge as a new major Proterozoic base metals (lead-silver-zinc-copper-gold) province.

Based on the results of drilling to 25 April 2008 (40 effective coreholes) AML had identified identified an Indicated and Inferred Resource estimate in the Abra deposit of 93 million tonnes at 4.0% lead and 10 g/t silver (2.5% lead cutoff) and 14 million tonnes at 0.6% copper and 0.5 g/t gold (0.4% copper cutoff) within 100%-owned mining lease M52/776. Further to the resource study, drilling confirmed that the Abra deposit remains open in most directions, representing the most significant minerals discovery in the region to date.

Mineralisation intersected at drillholes at Genie and Hyperion prospects, each more than 2 kilometres distant from the Abra deposit, suggest that Abra represents only part of a major base metals mineral system. As there is no surface expression of this extensive mineralised system, geophysical surveying has proved to be the most effective technique for drill target generation, especially at Abra where the deposit is characterised by coincident magnetic, gravity and electrical geophysical anomalies.

The current drilling programme, which commenced in June 2007, has returned outstanding assay results from several drillholes demonstrating that significant base metals mineralisation continues to the north of the previously known Abra deposit, in positions at least 60 metres closer to the surface than previously intersected.

The aims of AML’s ongoing drilling programme are to:

• Determine the limits to the Abra polymetallic deposit with particular focus on exploring higher grade targets/extensions to the north and south
  
• Test targets peripheral to Abra
  
• Enable increased confidence in resource definition studies by infill drilling

During 2008 substantial expenditure will be allocated to accelerated work programmes at the Abra deposit including prefeasibilty studies and for regional exploration throughout the South Bangemall Project areas.

Recent scoping studies into mine development at the Abra deposit indicate that the project holds potential for development using large scale underground cave mining and producing lead-silver and copper-gold concentrates.

Therefore, to most practicably realise early metal production from mining at the Abra deposit the Company signed a Letter of Intent to enter into a Joint Venture with Hunan Nonferrous Metals Holdings Group Co., Ltd (“HNG”) over Mining Lease 52/776 (“M52/776”) which covers the 100% owned Abra lead-silver-(zinc)-copper-gold deposit.

The Letter of Intent contains the following key elements which will be embodied in a formal Joint Venture Agreement between Abra and HNG (subject to Due Diligence by HNG).

• Following approval by shareholders at a General Meeting which was held on 10th December 2007 and subject to relevant Government approvals, Abra will make a placement of 10 million shares to HNG at $0.34 per share.
  
• Subject to all necessary approvals Abra will grant an option to HNG to purchase 10 million shares at $0.39 each, exercisable on execution of a Joint Venture Agreement (referred to below).

Subject to Due Diligence by HNG by 30th April 2008

• Abra and HNG will enter into an unincorporated Joint Venture with respect to the Mining Lease 52/776.
  
• HNG will fully fund all requisite feasibility study works and programmes. The final study is to be to a standard reasonably acceptable to Abra.
  
• If the study is positive HNG will fund the project through to production and HNG will recover a portion of the cost from Abra’s share of production in an amount and at a rate yet to be agreed.
  
• The capital costs will be for a plant and associated infrastructure capable of producing at a rate of 6 million tonnes per annum or other throughput rate mutually agreed.
  
• Abra warrants not to enter into any binding arrangements with any other party prior to the expiry of the Due Diligence period.

The Letter of Intent signed with HNG is an important step towards the development of the Abra base metal deposit.  It was subsequently determined that Hunan Nonferrous Metals Corporation Limited ("HNC"), rather than HNG, would adopt the intentions attributed to HNG in the Letter of Intent.

HNC is a joint stock company incorporated in the People´s Republic of China ("PRC") and listed on the Hong Kong Stock Exchange.  As at 7 May 2008, it had a market capitalisation of approximately A$1.48 billion.

HNC (together with its subsidiaries) is the largest integrated producer of nonferrous metals, excluding aluminium, in China, as measured by production volume.

HNC has a vertically-integrated and centralised production chain that includes upstream exploration, mining and ore processing as well as midstream smelting and downstream refining and value-added processing.  It is the largest producer of cemented carbides, zinc and antimony in the PRC (as measured by production volume), as well as a major producer of products such as lead, silver, indium, tantalum and niobium.

During April 2008 HNC advised the Company that they are satisfied with with their due diligence.

On 13 May 2008 HNC announced that it intends to make a proportional takeover offer for 70% of the shares in AML which HNC does not currently own.  At that date HNC owned 17.8% of the Abra shares.

Under the Offer, HNC will offer $0.83 cash per Abra share for 7 of every 10 Abra shares not held by HNC.  On 19 May 2008 HNC´s Bidder´s Statement was submitted to the Australian Stock Exchange.