TEXT-Zinifex says Allegiance shareholder accepts bid

(Following is a release by Australian zinc miner Zinifex Ltd ZFX.AX)

SYDNEY, Feb 11 - Zinifex Limited (ASX:ZFX) through its subsidiary Zinifex Australia Limited ("Zinifex") has acquired a substantial interest in Allegiance Mining NL ("Allegiance") (ASX:AGM) after Allegiance's largest institutional shareholder, Lion Selection, accepted into the Zinifex Offer.

Lion Selection accepted late on Friday for its total remaining holding of just over 5 per cent of Allegiance shares.

Zinifex CEO Mr Andrew Michelmore said the Lion Selection acceptance provided an independent confirmation that in the current market Zinifex's $1.00 all cash Offer represented fair value for Allegiance shares.

"We believe this sends a clear signal to other Allegiance investors that Zinifex's Offer represents fair value and provides certainty in the current volatile market."

On Friday, Zinifex's Offer for Allegiance was extended by two weeks to allow more time for Allegiance shareholders to become better informed about the true value of their shares.

The Offer is scheduled to close at 7.00pm on Friday, 22 February.