Drilling update on Dairi zinc/lead project

Herald's 71% owned subsidiary, International Annax Ventures Inc reports the following:

Assay results for hole SOP 34D are now available and continue to demonstrate the strength of the Anjing Hitam system.

The results are:

Hole North East Dip/Azimuth(mag)From(m) To(m) Width(m) Zinc% Lead% Silverppm Description

SOP34D 9570 5156 -87?/253? 287.5 311.18 23.68 17.6 11.8 13.9 MMH

MMH = Main Mineralised Horizon

Hole SOP35D, targeting the zone 60m up dip from SOP34D and only 40m down dip from the projection of the blank 1999 hole SOP21D, obtained a 5.5m MMH massive sulphide intercept. This smaller intercept has helped to define the apparent sharp western up dip edge of the mineralised zone. Hole SOP36D is being drilled to target the MMH about 120m down dip from the SOP34D intercept.

In view of recent drilling success, it has been decided to continue drilling the Anjing Hitam zone further south-east. A fan of 3 holes will be drilled from a site at 9480N, 5225E. A larger capacity drilling rig has been taken to site to facilitate this deeper drilling.

Several other regional targets will also be tested concurrently using the original drilling rig.

Formal resource estimation of the Anjing Hitam zone will not be carried out until the present program's conclusion and an accurate drill collar and topographic survey is completed.

As previously stated, all analysis is of halved core samples and is being carried out at Intertek Testing Service's laboratory in Jakarta using a multi-acid digest and AAS average ore grade finishing. Material from three of the current program holes is being check assayed at Amdel Ltd's laboratory in Adelaide, Australia.

In addition, a total of 123 specific gravity (SG) determinations have been obtained from representative samples of the MMH, giving an average value of 4.44. Systematic SG determination of each assay sample is now standard practice.

Yours faithfully, M P Wright, Executive Director (*)