Haranga Resources (ASX: HAR) has
inked a memorandum of understanding to secure 5 million tonnes per annum of
export rail capacity for iron ore produced from its Selenge Project in
Mongolia.

This deal is a major step in the development of the Selenge Project, where
recent metallurgical results of the ore and the techno-economic assessment by
ProMet Engineers delivered a base case net present value of over US$1 billion,
with substantial upside potential.

The agreement was executed with both the Mongolian Railway Authority and the
Mongolian Government Ministry for Road, Transportation, Construction and Urban
Development.

Both bodies will support the allocation of up to 1 million tonnes per annum for
export rail capacity for the Selenge Project once mining has begun, with the
total 5 million tonnes per annum to be allocated from 2015 onwards.

As part of the agreement, Haranga will share Feasibility Study results on any
proposed new rail infrastructure, including any rail track and
loading/unloading facilities, to be constructed for Selenge.

In return, the Mongolian Railway Authority and the Mongolian Government
Ministry for Road, Transportation, Construction and Urban Development will do
their best to enable Haranga to obtain all the required licences and operating
permits to build and operate any new rail infrastructure and facilities.

Selenge – located in major iron ore province

Haranga has defined an exploration target of 160 to 320 million tonnes for the
Selenge Project, which is located in the heart of a premier iron ore province
and has access to the main trans-Mongolian rail line and nearby rail spurs.

Selenge comprises four major iron ore prospects within 10 kilometres of each
other, and is strategically located near to the 304 million tonne Eruu Gol
mine, which currently exports over 3 million tonnes of magnetite concentrate
per annum.

The company is prioritising its current drilling program to increase the
Resource inventory from the current 32.8 million tonnes at 24.4% iron, based on
initial drilling at Bayantsogt only.

An aggressive program is underway with nine drill rigs turning on the project.
Drilling will continue through until December 2012.