Mineralogy increases offer price and receives support of the board of directors of Waratah Coal Inc.

Mineralogy Pty Ltd. announced that it is amending its offer to acquire all of the common shares of Waratah Coal Inc. by increasing the offer price to $1.60 per share and extending the offer to remain open for acceptance until 11:59 p.m. (local time) on December 15, 2008, among other things.

Mineralogy also announced that it has entered into an agreement with Waratah pursuant to which Waratah has agreed to support the amended Offer. Waratah’s support will include a recommendation from its board of directors that Waratah shareholders accept the amended Offer. The support agreement also contains, among other things, provisions for a $2.7 million break fee, non-solicitation of competing offers, notification by Waratah to Mineralogy of the receipt of any alternative proposals from third parties and a right on the part of Mineralogy to match any such proposal.

Concurrently, shareholders of Waratah holding common shares and in the money options and warrants exercisable to acquire common shares that represent, in the aggregate, approximately 17% of Waratah’s outstanding common shares, on a fully-diluted basis, have signed agreements pursuant to which they have agreed to tender to the Offer the shares held by them and shares to be received by them upon the exercise of such options and warrants. Mineralogy already holds approximately 16% of Waratah’s outstanding common shares, on a fully-diluted basis.

“We are very pleased that we have been able to obtain Waratah’s support for our offer”, said Mineralogy’s founder and Executive Chairman, Professor Clive Palmer. He added, “The Amended Offer price is 13.5% higher than Mineralogy’s original offer price, and represents a 28% premium to Waratah’s closing price on the TSX Venture Exchange at Friday’s close. This premium and the positive recommendation of Waratah’s board provide compelling reasons for shareholders to accept our offer.”