SYDNEY, Australia, July 4 /PRNewswire/ --

Allegiance Mining NL (ASX Code: AGM) is pleased to advise that Allegiance 
has received A$33,040,000 from Jinchuan as payment for 41,300,000 fully paid 
ordinary shares at an issue price of A$0.80 following approval for the 
transaction from the Chinese Provincial and Central Government authorities.

Near mine surface exploration at Avebury has focused on extending the
current resources, particularly along strike in the East Avebury - Saxon
areas and in the Bintje area. An intensive underground infill drilling
program designed to convert Inferred Resources to Indicated Resources has
also commenced.

The surface exploration drilling has returned significant mineralised
intercepts beyond the limits of the current resource in all of the targeted
areas. The underground resource infill drilling program is expected to finish
in November 2007 with an updated Resource Estimate by December 2007.

East Avebury - Saxon Drill results have confirmed that the Saxon Resource
mineralisation extends eastwards:

- Drillhole A180 intersected: 6.0 metres @ 0.7% Ni and 12.0 metres @ 0.7%
      Ni.
    - Drillhole A182 intersected: 1.0 metres @ 5.0% Ni and 3.0 metres @ 2.4%
      Ni from a larger zone of 14.0m @ 1.2% Ni.



Further drilling is planned and resource extensions are likely.

Similarly, drilling to the west of the East Avebury Resource has
confirmed the continuity of mineralisation a further 100m beyond the previous
resource boundary. Intercepts :

- Drillhole A187 intersected: 1.0 metres @ 1.3% Ni
    - Drillhole A190 intersected: 10.6 metres @ 0.8% Ni



Bintje

Two drill holes have intersected mineralisation in the Bintje area
immediately east of the Avebury:

- Drillhole A186 intersected: 15.0 metres @ 0.9% Ni including a high
      grade zone of 2.0 metres @ 2.4% Ni.
    - Drillhole A121 intersected: 3.0 metres @ 0.7% Ni and 5.0 metres @ 1.1%
      Ni.



Chairman, Tony Howland Rose said "We are well pleased with our drilling
progress, two underground rigs are employed on drilling out prior to mining
and for both exploration and resource up-grade purpose. Three surface rigs
have been active over the past four months and the results are most
encouraging. We are at present "scoping out the Province" in order to
ascertain optimum mine life and with potential plant expansion in mind. The
additional drilling data released today would, subject always to infill
drilling, be expected to increase the resource by about 1.2m tonnes/0.9%
nickel in due course. This could potentially add an additional 10,000 tonnes
of nickel metal to the present resource."

David Deitz, Director added "the capital injection by the Jinchuan Group
Limited together with approval for bank finance is indeed a pleasant
milestone. Allegiance is delighted to have Jinchuan as our major shareholder.
The funding now in place completes this phase of our capital raising
programme".

For Further Information Contact:
    Tony Howland-Rose
    Chairman
    +61-2-9397-7777 or +61-418-972-112



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