ASX and Media Reelease: 22 Ju
uly 2010 ASX code: RXM Dem
merger Tax Co
ost Base
e Appo
ortionm
ment We re
efer to Rex M
Minerals Limited’s (Rex) a
announcemeent to the Australian Stocck Exchange (ASX) of 15 JJune 2010 th
hat confirrmed the dem
merger of itss former subsidiary Whitee Rock Mine
erals Limited (White Rockk) to the sharreholders of Rex. Shareholders receeived one Wh
hite Rock forr every threee Rex shares held prior to
o the demergger. This announcement advises Reex Sharehold
ders of a rea sonable apportionment of the cost bbase in their Rex shares betwe
een their exissting Rex shaares and their new sharees in White R
Rock. of 30 April 20
010 in relatioon to the Wh
hite Rock dem
merger statees at paragra
aph 6.1 that Rex is Rex’s Explanatory Statement o
seekin
ng a Class Ru
uling from the Australian Taxation Offfice (ATO) to
o confirm the
e tax implicattions for sha
areholders off the demerger. This Claass Ruling haas not yet isssued. Assum
ming the ATO confirms the availabilityy of demerge
er relief for the White
e Rock demerger (and thiis will be advvised by a lettter to shareholders once
e this has beeen confirme
ed), the tax cost base implications for Rex Sharreholders are
e explained aas follows. Subse
ections 125‐880(2) and (3) of the Incom
me Tax Assesssment Act, 1997 require
es Rex sharehholders to re
easonably apporrtion the costt base of theeir Rex shares between thheir new shaare interests in White Roock and their existing share intere
ests in Rex haaving regard to the markket value of bboth the Rex shares and tthe White Roock shares ju
ust after the demerger. An ind
dependent vvaluation of W
White Rock immediately after the de
emerger on 1
15 June 20100 has valued White Rock at a preferrred value off $16,974,98
86. The varia
able weighteed average price of Rex’s shares that traded on th
he ASX on 15
5 June 2010 w
was $1.295 eequating to aa market valuation of Reex of $148,13
34,351. Having regard too the above information, a reasonable apporttionment of the shareho
olders’ existinng cost base in their Rex shares is 89..72% to Rex shares and 10.28% to White R
Rock shares. White
e Rock Market V
Value % $ 16,974
4,986 10.28% Rex $ 148,13
34,351 89.72% TOTALL $ 165,10
09,337 100.0% For exxample, a shaareholder who purchase
ed 3,000 sharres in Rex for $1 each prior to the de merger wou
uld apportion
n their cost b
base as follow
ws: Co
ost base appo
ortionment Sha
ares held Cost basee per share White
e Rock (10.288%) $
$308.40 1,000
0 (1 for 3) 30.84 cennts (1 for 3) Rex (8
89.72%) $2
2,691.60 3,000 3
89.722 cents Total $3
3,000.00 N/A N
N/A Paragraph 6.15 off Rex’s Explan
natory Statement of 30 A
April explains the cost ba
ase implicatioons if the AT
TO does not confirrm the availaability of dem
merger relief. For Co
omment and
d Further De
etails Rex Minerals and its projeects please vvisit our website www.reexminerals.co
om.au or con
ntact: For more informattion about R
Steven Olsen (Managing Direcctor) Med
dia enquiries to: or Am
mber Rivamon
nte (Compan
ny Secretary)) Ian H
Howarth, Colllins Street M
Media Phone
e: 03‐5337‐44000 Phon
ne: 0407 822
2 319 or 03 99223 2465 E‐mail: info@rexm
minerals.com
m.au Email: ian@collin
nsstreetmeddia.com.au