Ashapura Minechem

Ashapura Minechem Ltd has informed that the members at the 26th Annual General Meeting (AGM) of the Company held on September 18, 2007, inter alia, have accorded to the Board of Directors of the Company ("The Board"), for capitalization of 78,742,826 standing to the credit of the General Reserve and / or Securities Premium Account of the Company, as may be considered necessary by the Board, for the purpose of issue of 39,371,413 Bonus Shares of Rs 2/- each, credited as fully paid up to those holders of the existing Equity Shares of the Company, whose names appear in the Register of Members, on such date as may be decided by the Board in this regard, in the proportion of 1 Equity Share for every 1 existing Equity Share held by them as on the said date and that the Bonus Shares so issued and allotted be treated for all purposes as an increase of the nominal amount of the Equity Capital of the Company held by each such member / person and not as income.

Resolved Further that pursuant to SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, and the Company's Employee Stock Option Scheme (ESOS), the consent of the members of the Company be and is hereby also accorded to the Board of Directors to further capitalize a sum not exceeding Rs 12,75,524/- standing to the credit of General Reserve and / or Securities Premium account of the Company for issue of maximum of 637,762 Equity Shares as Bonus Shares, in the ratio of 1:1, to the Employees of the Company against the options exercised by them from time to time within the valid period of the Scheme.