Ahmedabad, 13th May 2010: Gujarat NRE Mineral Resources Limited (GNMRL) is offering Rights issue of 23,86,58,243 Equity Shares of Re. 1/- for cash at a premium of Rs. 4/- per Equity Share (i.e. at an issue price of Rs. 5/- per Equity Share) aggregating to Rs. 119.33 crores (approx.) to the existing shareholders of the Company.

GNMRL enjoys controlling stake in Gujarat NRE Coke Ltd (GNCL), the largest independent met coke producer in India, with 33% holding. This enables GNMRL inturn to hold controlling stake in Gujarat NRE Coking Coal Ltd (GNCCL), the Australian subsidiary of GNCL. GNCCL listed on the Australian Securities Exchange (ASX), with market capitalisation of more than A$ 650 million owns and operates two coking coal mines in Australia of high quality premium-hard coking coal resources of over 560 million tonnes.

GNMRL through its Australian wholly owned subsidiary Gujarat NRE Oil Ltd has 90% stake in two onshore exploration blocks namely EP457 and EP458 covering an area of 10640 sq. km in the highly prospective onshore Canning Basin, Western Australia.

Addressing the media Mr Arun Kumar Jagatramka, Chairman and Managing Director, GNMRL said, “GNMRL is the fountain head of the Gujarat NRE group. The company is unique since it is focussed on all the three prime sectors of energy critical to India’s economic growth, namely, coking coal, met coke and oil & gas”. “The met coke market as well as that of coking coal becoming stronger with increased demand and steep rise in prices due to constrained global supply, would boost GNCL stake holder’s wealth in days to come and also benefit the GNMRL shareholder immensely”, added Mr Jagatramka.

Speaking specifically on the rights issue, Mr Jagatramka said, “This rights offer is being made with a view towards giving an opportunity to the loyal investors of Gujarat NRE group, many of whom have been with us since the inception. The idea is very simple – to accord an opportunity to these investors to bless the child in its infancy. Let me reiterate again, long term investors in our group have benefitted the most. We, at Gujarat NRE, believe in creating wealth and sharing it with our stake holders. Gujarat NRE Coke Ltd (GNCL), the flagship company of the group which is listed on BSE & NSE with a market capitalization of over Rs.4500 crores, has a history of constantly rewarding the shareholders – with 6 bonuses in last 7 years and has constantly paid dividends on the enhanced equity base. GNCL has delivered over 100% compounded annual return to an investor in the last decade, ie. if a person would have invested Rs. 1 in this stock on January 3, 2000, his value of investment on December 23, 2009 would have been Rs.106.” informed Mr Jagatramka.

Last year the board of directors of GNMRL, in an endeavour to benefit the shareholders, announced bonus issue to non-promoter share holders in the ratio of 1:1. This rare action of corporate governance of making the share holders the real beneficiary of the bonus issue had not only reduced the cost of shareholding of the non-promoter shareholders by half, but also led to a very little dilution in equity capital of the Company even after a liberal Bonus issue, it also allowed wider participation of the non-promoter shareholders.

“I would hence invite the Gujarat NRE family to participate in the rights offer as we take another leap in Our Quest for Energy…Our Quest for Growth” said Mr Arun Kumar Jagatramka.

For more information please contact:

Mr Sutirtha Roy at +(91) 98790 19880