1 November 2013 Frieda River Copper Gold Project - New Partner, New Vision Highlands Pacific Limited today announces a new joint venture partnership for the Frieda River Copper Gold Project in Papua New Guinea which will see Glencore Xstrata plc (Glencore) exit the project and PanAust Limited (ASX:PNA) emerge as an 80% partner with a new vision to develop Frieda. PanAust will take up to a A$10 million placement in Highlands and will also relinquish any claw back rights regarding Exploration Licence EL 1312 in the Star Mountains.

Details of the Frieda transaction and a Share Placement Agreement between PanAust and Highlands Pacific are outlined below and in PanAust's ASX announcement released today.

Frieda River Joint Venture

PanAust has entered into a share sale agreement with Glencore under which PanAust will acquire
Glencore's interest in the Frieda River joint venture by acquiring all of the shares held by Glencore in Xstrata
Frieda River Limited (XFRL).
PanAust and Highlands Frieda Limited (Highlands Frieda) have agreed that the two parties will hold interests of 80% and 20% respectively in the Frieda River joint venture on completion of PanAust's acquisition of the shares in XFRL and that any previous disagreement between XFRL and Highlands Frieda relating to earn