Herald to recommence exploration in Meluak gold project

The following is an excerpt from Herald Resources Limited?s Quarterly Report September 2003 released on October 29, 2003.

MELUAK GOLD PROJECT
Herald 26% via Corona Gold Ltd

CORPORATE
Project owner Corona Gold Ltd has raised $560,000 from the following:
- $260,000 via a priority rights issue to Herald shareholders at 1 cent each
- $300,000 via a placement to Macquarie Bank Ltd at 15 cents each

Macquarie Bank also retain the right to subscribe for a further $1.4M of shares at 20 cents and underwrite future issues totaling $10M.

The present shareholding structure of Corona Gold is thus as follows:
Herald Resources Ltd 10,000,000 shares (26%)
Herald shareholders 26,356,988 shares (69%)
Macquarie Bank Ltd 2,000,000 shares ( 5%)

EXPLORATION
Following the funding of Corona Gold above, low-key work is about to recommence.

A program of continued reconnaissance, followed by further gridding and sampling and a ground geophysics survey is intended. Subject to approval, this will be followed by a program of RC and diamond drilling using a track mounted multi-purpose rig. Some preliminary metallurgical testwork will also be carried out.

The Company considers Meluak to be an outstanding example of a high-sulphidation, epithermal gold occurrence which is in a similar structural setting and with a similar high degree of silicification as Newmont?s Martabe gold district (also in Sumatra) where the Purnama Deposit has currently reported resources of 66.7Mt @ 1.74g/t Au, 21.5g/t Ag containing 3.7Moz gold and 46Moz silver. (*)

Editor?s note: Meluak is 125km north of Herald?s Dairi zinc/lead project. Herald, an Australian listed miner, was granted a SIPP permit (Prospecting Permit) in January 2003, to explore an area of 10,620ha in the Meluak district of the Regency of Gayo Lues, Nanggroe Aceh Darussalam Province.