NEWS RELEASE - drilling update on Dairi zinc/lead project

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

Hole 34, collared at 9570N, 5156E, and inclined 87o to 253o mag., has encountered a well-mineralised zinc/lead massive sulphide intercept from 287.5-311.2m, a thickness of 23.7 metres. The estimated true width of the intercept is 20.5 metres.

This successful intersection demonstrates a further 130m SE extension of the Anjing Hitam mineralised zone, and perhaps even more importantly suggests that the trend is continuing past blank Hole 21, drilled in 1999 at 9536N, 5074E, and which was previously thought to represent a southern cut-off of the mineralisation.

A downhole EM (DHEM) geophysical survey being carried out concurrently, suggests downdip continuation on section 9800N and with extension of the trend to the SE. In addition, reinterpretation of the 1999 UTEM geophysical survey, aided by the DHEM survey and drilling results, also suggests that the interpreted massive sulphide zone should continue considerably further to the SE.

The rig is currently drilling hole 35, updip from 34. A larger drilling rig is being mobilised and this will enable the trend to be followed beneath rising topography.

Exercise of warrants

Herald has exercised 2,000,000 warrants (options) at C$0.23 per share in the capital of its subsidiary, International Annax Ventures Inc. (IAX), taking its holding to 14,708,124 ordinary shares, representing 71.48% of IAX's presently issued capital.

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