Annax drilling reports - Sopokomil, North Sumatra

Herald's 71% owned subsidiary, International Annax Ventures Inc. (IAX), reports as follows:

Sopokomil Prospect - Anjing Hitam zone

The Company is pleased to announce assay results from holes SOP36D on line 9570N, SOP33D (extended) on line 9700N at the Anjing Hitam zone and SOP38D at the north end of Anjing Hitam, Sopokomil at its Dairi Project in North Sumatra.

Hole North East Dip/Azimuth From To Width Zinc% Lead% Silver Description

(mag) (m) (m) (m) (ppm)

SOP33D 9700 5086 62.5/074 o 314.4 316.3 1.9 23.3 15.2 16.3 MMH

SOP36D 9570 5157 77o/072O 361.0 372.4 11.4 16.3 8.4 13.0 MMH

SOP38D 10000 4975 51.5 o/249 o 38.1 41.5 3.4 6.7 14.9 32.2 MMH

SOP41D 9475 5225 87.5o/250o 369.0 375.6 6.6 Results awaited MMH

MMH = Main Mineralised Horizon

Hole SOP33D, on section 9700N, previously drilled to 299.7m, was deepened to Jehe carbonate unit basement and hit a 1.9m high grade base metal zone. This increases the downdip extension on this section to about 350m, albeit at narrow width.

Hole SOP38D was drilled on 10000N, at the north end of Anjing Hitam and encountered a 3.35m MMH zone of high Pb>Zn sulphide. The Upper Mineralised Zone in this hole is oxidised.

The LF70 rig has just completed hole SOP41D at 9475N, on the Anjing Hitam zone, and has obtained a massive sulphide intercept of 6.6m with estimated typical Zn/Pb grades. This extends the strike a further 100m SE.

The LF70 rig will drill two further holes from the present site on 9475N.

Sopokomil Prospect - Other drilling

The small Edson diamond rig is being used to drill other positions extending away from the Anjing Hitam Zone. Hole SOP37D was drilled at the edge of the Dang Takkas zone, on a major UTEM geophysics anomaly to the SW, but failed to intersect significant sulphides.

Hole SOP39D, on 10400N, and targeting both massive sulphide and carbonate hosted MVT type mineralisation, hit the interpreted main horizon but in a fault zone. A 3m section has blocks of massive sulphide and is correlated with an intercept in the 1998 hole SOP5D with 5.2m assaying 6.3% Zn, 3.5% Pb.

A 22m zone of sphalerite bearing brecciated dolomite can also be correlated with the latter hole, where 10m assayed 6.2% Zn, out of a 26m intercept @ 3.5% Zn.

Hole North East Dip/Azimuth From To Width Zinc% Lead% Silver Description

(mag) (m) (m) (m) (ppm)

SOP37D 9600 4250 76 o/070 o No significant mineralisation

SOP39D 10418 5005 60 o/250 o 41.0 44.0 3.0 Results awaited JSZ MVT

134.0 156.0 22.0 Results awaited JSZ MVT

JSZ = Julu Sedex Zone, MVT = Mississippi Valley Type

The Edson rig is currently drilling a downdip hole on 10400N and will then move to the northern extension of the Julu Sedex Zone to drill holes at 12000N and 12300N. (*)