Drilling update on Dairi zinc/lead project

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

The Company is pleased to announce the following results from the latest drilling on line 9570N at the Anjing Hitam zone at its Dairi Project in North Sumatra.

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

(mag)

SOP35D 9570 5156 -75?/252? 255.39 260.92 5.53 15.4 8.7 12.4 MMH

SOP36D 9570 5157 -77?/072? 361.04 372.42 11.38 Assays awaited MMH

MMH = Main Mineralised Horizon

Hole 35D intercepted the MMH at about 70m up dip from the previously reported SOP34D.

Hole 36D, on the same section and about 115m down dip from SOP34D, has intersected the MMH over a 11.4m interval, with typical massive sulphide mineralisation. It has a faulted upper contact. Please refer to the attached cross section of 9570N.

This new drill rig will now move to deepen hole SOP33D on line 9700N, which ceased just short of the anticipated location of the MMH due to the previous rig's failure. After this, it will be moved to a site at 9480N to drill a fan of 3 holes.

Yours faithfully, M P Wright, Executive Director