2.5m of yellow tail, page-3

Australis takes interest in Yellowtail Kingfish project
10:31, Monday, 8 January 2007

Sydney - Monday - January 8: (RWE Australian Business News) -
Australis Aquaculture Ltd (ASX code: AAQ) has acquired 2.5 million
shares representing 10 per cent of the issued capital of Western
Kingfish Ltd (WKL), a company created to develop production capability
in Yellowtail Kingfish at Jurien Bay, WA.
Aquacultural assets include a sizeable land-based marine fish
hatchery and grow-out facility in Jurien Harbour, as well as a nearby
sea bed lease with 10 inshore sea pens which are licensed to produce
Yellowtail Kingfish.
An advanced application for production via additional submerged
offshore sea pens and/or a novel onboard tanker-ship production unit is
pending approval.
WKL's initial investment of $6 million commenced on January 1.
Australis has obtained its interest by providing WKL access to
its extensive US fish marketing network of 160 wholesale distributors
and over 600 supermarkets, plus a species-specific licence to use its
patented recirculation technology in Australia and in JV with Australis
in the US.
Australis does not anticipate contributing any significant
monies during WKL's development period.
The company has the exclusive first right to jointly develop
US-based kingfish production with WKL.
Australis will also act as WKL's exclusive fish selling agent in
North America, providing Australis with an additional revenue stream, as
well as product and market experience in Yellowtail Kingfish prior to
its investment in a proposed Yellowtail production facility in the USA.
The transaction requires Australis shareholder approval.
Shares in Australis Aquaculture fell 3c to 60c this morning.