Release: Further encouraging drilling results in the Mt Muro region

22 March 2004 -- The Directors of Straits Resources Limited have pleasure in announcing the results of recent drilling at the 70 percent owned Mt Muro property in Central Kalimantan, Indonesia.

Four rigs are currently operating in two project areas to the west of the plant as outlined in Figure 1. Work is continuing to define gold and silver resources prior to a potential decision to proceed to reserve definition drilling to support the recommencement of operations.

Tumbang Lahung
Drilling has started in the Tumbang Lahung region, a new area just 12 kilometers west of the Mt Muro minesite, with encouraging results received from the first four holes drilled.

The Tumbang Lahung region is a high level volcanic centre characterised by numerous veins occurring within a 4 by 4 kilometer area of volcanic spires and silica caps.

Drilling has commenced on the outcropping east-west trending Botol Vein and other vein systems in the district. The Botol Vein is thought to extend over a length of 600m and trenching has yielded anomalous results. The vein dips south at 45 degrees and the first four holes were drilled on two sections 50 meters apart at shallow depths into the veins.

The holes all intersected vuggy quartz veins varying in thickness between 2 and 6 m. The quartz veins are predominantly oxidised and broken in the upper portions and associated with significant sulphides lower down. Ten holes have been completed so far and results for the first seven have been received. Results received include:

? BOTD001 2.5m @ 26.6 g/t Au, 119 g/t Ag from 32 m
? BOTD002 2.4m @ 5.7 g/t Au, 63 g/t Ag from 36 m
? BOTD003 6.5m @ 9.3 g/t Au, 135 g/t Ag from 28 m
? BOTD004 4.7m @ 7.9 g/t Au, 44 g/t Ag from 36 m

Juking Sopan
Drilling has continued at the Juking Sopan region 22 kilometers to the west of the Mt Muro minesite and to-date a total of 91 holes have been completed. Results received todate (following those reported in the December 2003 quarter activities report) have yielded further encouraging intersections along the steeply dipping Tasat Vein including:

? JUS050 5.0m @ 4.5 g/t Au from 116 m
? JUS060 6.0m @ 3.0 g/t Au from 79.4 m
? JUS063 7.8m @ 13.8 g/t Au from 16.0 m
? JUS067 0.4m @ 19.6 g/t Au from 34.1 m
? JUS071 5.7m @ 6.3 g/t Au from 64.0 m
? JUS073 0.6m @ 38.5 g/t Au from 27.2 m
? JUS077 4.2m @ 6.7 g/t Au from 112.6 m
? JUS078 3.0m @ 10.0 g/t Au from 10.2 m; 3.8m @ 9.0 g/t Au from 17.8 m
? JUS083 2.7m @ 1.5 g/t Au from 105.3 m; 4.1m @ 5.4 g/t Au from 115.0 m

Mapping, sampling and drilling continues to extend the vein system both along strike and at depth. The Tasat Vein has now been drilled over 800m of its 1,000m strike on roughly 80m centres. Mineralisation with variable grades is hosted in banded epithermal veins, hydrothermal breccias and fault zones.

Regional sampling has continued to define numerous highly prospective vein outcrops with excellent sample results. A number of these targets are now being drill tested including the Guning Serai and Tenan vein systems. (end of release)