Herald Resource Limited : Dairi Zinc/Lead project update

Australian based mining company Herald Resorces Limited's 71% owned subsidiary, International Annax Ventures Inc. which is listed in Canadian Venture Exchange (CDNX) reports as follows:

Sopokomil Prospect - Anjing Hitam Zone

SOP 43D, the third hole at the southernmost section drilled to date (9475N), has now been completed with an intercept of 9m of typical pyrite/sphalerite rich massive sulphide mineralization. This hole was intended to intersect the target at 100m downdip from hole SOP 41D (6.6m grading 15.6% Zn, 9.1% Pb). However, excessive drill stem deviation resulted in the intercept only being about 40m east of hole 41D, and therefore possibly still near the western edge of the Anjing Hitam trend.

Plans for completion of at least one hole targeting the zone on Section 9300N, have been postponed due to end of year shutdown. Further drilling is warranted at the southern extension and downdip, the mineralization remaining open in these directions.

The available data from hole 43D is tabulated:

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

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

SOP43D 9475 5255 -85?/71? 381.5 390.3 8.8 Assays-----awaited MMH

MMH = Main Mineralised Horizon

A ground control survey is currently underway as well as a structural geological interpretation. When results of this work and final assays are at hand, a resource estimate will be undertaken for planned release in January. Metallurgical testwork is also currently underway.

Sopokomil/Other Drilling

Holes SOP44D and 45D were drilled in the Bongkaras sector of the sedex trend located 2.5 - 3km NW of the Anjing Hitam zone. Similar to holes SOP 13D and SOP 17D, drilled to the SE, a broad sedex zone was encountered in hole SOP 44D with 3 mineralized horizons intercepted, including a best of 8m of intercalated sulphide and shale with significant assays. The just completed hole SOP 45D located 460m NW of Hole 44D, intersected a 6m zone containing massive sulphide mineralization. It is considered highly significant that potentially economic mineralization has now been intersected in the 4 north-western-most holes; SOP 13D, 17D, 44 D and 45D - drilled over a strike of about 1500m. The distance between hole 45D and the southernmost holes at Anjing Hitam is approximately 3000m.

This data from these two holes is tabulated below:

Hole North East Dip/Azimut From To Width) Zinc% Lead% Silver Des (mag.) (m) (m) (m) (ppm)

SOP44D 11990 4200 -66o/244o 140.8 148.9 8.1 6.0 2.9 5.7 Sedex

SOP45D 12350 3920 -64o/246o 99.0 105.0 6.0 Assays-----Awaited Sedex

Hole SOP 40D was completed downdip of Hole SOP 39D on section 10,500N. A similar result to the updip hole SOP 39D was obtained with the sedex zone being severely affected by thrust faulting and only minor sulphide present in a mylonite/gouge zone. The carbonate-hosted mineralized zone was also relatively weaker in this hole.

Dairi Project is a joint venture between Herald and Indonesian publicly listed state mining company PT Aneka Tambang Tbk (Antam) which hold a Seventh Generation Contract of Work over 22,030 Ha in Dairi regency, North Sumatra. The recent addition of the adjacent Parongil KP increased the project's exploration area by 13,640 Ha.

Herald's subsidiary Annax International Ventures holds a majority interest of 70-80% and Antam with 20-30% in a company named PT Dairi Prima Mineral to develop Dairi Zinc/Lead project. (alex)