Released on May 31, 2011

Bradken Ltd., Newcastle, Australia, has announced an initiative to raise $100 million to establish a metalcasting facility in Xuzhou, China, and fund two U.S. foundry expansions announced earlier this year.

The publicly traded company said it will undertake a placement of approximately 18.7 million new ordinary shares to raise up to $162 million. Bradken intends to use the proceeds to fund $100 million of growth capital, including launching the Chinese metalcasting facility and expanding the U.S. plants, $20 million to lower costs and improve margins and $38 million to continue doing business as usual.

In February, Bradken announced it would spend $18.1 million to expand the capabilities and capacity of its Amite, La., metalcasting facility and $23 million to expand the casting and inspection areas of its Tacoma, Wash., plant.

According to the terms of the share-placement plan, Bradken said its eligible shareholders may subscribe for shares at the issue price, up to a value of $10,000. The price of the shares issued is expected to be equal to the company’s existing ordinary shares. Bradken has requested a trading halt to be placed on its shares until the placement has been completed. The company will not be seeking shareholder approval for the issue of new shares.