Release: Dairi project ? metal price sensitivity

The following news release was filed by Herald Resources Ltd. to the Australian Stock Exchange on 12 January 2004:

RE: DAIRI PROJECT ? METAL PRICE SENSITIVITY

Given the significant rises in base metal prices in recent months, Herald has received a number of requests from shareholders and investors enquiring as to the financial effect of these rises on the projected cash flows of the high grade Dairi zinc/lead project.

In order to keep the market fully informed, the table below shows the key findings of the Dairi Pre-feasibility Study, (completed July 2003), comparing results obtained by using the original metals prices versus those at present.

As the table indicates, the project is very sensitive to metal prices, and the economics are dramatically improved when using today?s metal prices.

All amounts are in US$ and figures are project totals.

Yours faithfully,
M WRIGHT
Executive Director

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