Macquarie Bank to provide funds for Herald?s Dairi project

The following is a release from Herald Resources Limited to the Australian Stock Exchange.

RE: DAIRI PROJECT ? CONVERTIBLE FUNDING FACILITY

November 26, 2003 -- Herald is pleased to announce that it has accepted an offer of finance from Macquarie Bank Ltd to provide funds for the completion of the Bankable Feasibility Study (presently in progress) on the high-grade Dairi zinc-lead project, where reserves presently stand at 6.3mt @ 23% zinc equivalent.

The finance facility is for a total of $3m, and is repayable (to the extent that it has not been repaid or converted into ordinary fully paid shares as detailed below) by the end of 2006.

Under the facility, Macquarie will have the right for 3 years from the drawdown date to apply for up to $3m of ordinary Herald shares at a price of $0.93 per share. In that event, any proceeds received by Herald will be applied first against any outstanding facility amount. (end of release)

Editor's note: Dairi project is located in North Sumatra. Herald has 80 percent stake in PT Dairi Prima Mineral, which runs the project, with state miner PT Aneka Tambang Tbk holds the remaining 20 percent.