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    7 October 2008

                            Union Resources Limited                            

                     1 for 5 Non-Renounceable Rights Issue                     

The following announcement has been made on the Australian Securities Exchange
("ASX"). In addition, a prospectus (the "Prospectus") relating to the
non-renounceable rights issue (including ASX Appendix 3B) was also released to
the ASX. The prospectus was today lodged with the Australian Securities &
Investments Commission (ASIC).

Union Resources Limited ("the Company") previously advised on 16 September that
it will undertake a one (1) for five (5) non-renounceable rights issue at
$0.011 (1.1 cents) per share to raise up to approximately $2.0 million.
Shareholders will be offered the opportunity to purchase one share for every
five shares held by them as at the record date of 16 October 2008. Shareholders
will also receive one free attaching option for every five shares applied for,
expiring 31 December 2010 and exercisable at $0.02 (2 cents) per option. The
offer under the rights issue is not underwritten.

As previously advised, funds raised from the rights issue will be expended
solely on the Namibian Sandpiper Phosphate Project ("the Project"), whilst
funds allocated for working capital which will be used to fund the Company's
general administrative expenses. The funds raised will be used for:

 1. undertaking confirmatory sampling (including acquisition of gravity cores
    and grab samples) and subsequent geo-statistical analysis;
 2. undertaking sampling for process testing and geotechnical assessment;  
 3. undertaking a dredging assessment;
 4. payment of the US$500,000 cash settlement sum to the vendor of the Project;
 5. working capital generally; and
 6. expenses of the rights issue.
   
The proposed timetable for the rights issue is as follows*:

1. Lodge Prospectus with ASX                              7 October          
                                                                           
2. Application to ASX for quotation of Shares              (Tuesday)         
(Appendix 3B)                                                                
                                                                             
Notice to Shareholders containing information in        9 October 2008       
Appendix 3B                                                                  
                                                          (Thursday)         
                                                                             
Shares trade "Ex" the entitlements issue on the           10 October         
ASX                                                                          
                                                           (Friday)          
                                                                             
Record Date to identify Eligible Shareholders             16 October         
and to determine Entitlements under the                                      
Prospectus                                                (Thursday)         
                                                                             
 1. Despatch of Prospectus and Entitlement and            21 October         
    Acceptance Form ("Opening Date")                                         
                                                          (Tuesday)          
 2. Advise ASX that despatch completed                                       
                                                                             
Closing Date                                             12 November         
                                                                             
                                                         (Wednesday)         
                                                                             
Securities quoted on a deferred settlement basis         13 November         
                                                                             
                                                          (Thursday)         
                                                                             
ASX notified of under-subscriptions                      17 November         
                                                                             
                                                           (Monday)          
                                                                             
Despatch Share Holding Statements                        20 November         
                                                                             
                                                          (Thursday)         
                                                                             
Expected commencement of trading of new shares           21 November         
on ASX                                                                       
                                                           (Friday)          

*The dates shown in the timetable are indicative only and, subject to the ASX
Listing Rules and the Corporations Act 2001, the Company reserves the rights to
change any date, including to extend the closing date or to close the offer
early without prior notice.

The distribution of the Prospectus in jurisdictions outside Australia may be
restricted by law and persons who come into possession of the Prospectus should
seek advice on and observe any of these restrictions.  Failure to comply with
these restrictions may violate securities laws.  Applicants who are resident in
countries other than Australia should consult their professional advisers as to
whether any governmental or other consents are required or whether any other
formalities need to be considered and followed.

For further information contact:

Australia: Union Resources Limited
Mr John Lemon - Company Secretary
Phone: +61 7 3833 3833

London: Hanson Westhouse Limited
Bill Staple or Martin Davison
020 7601 6100

Bankside Consultants
Simon Rothschild or Louise Mason
020 7367 8888



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