Release: Herald Resources board recommends "accept" $2.25 cash offer

(23 January 2008)--The Directors of Herald Resources Limited today announced they have unanimously recommended, in the absence of a superior proposal, that shareholders ACCEPT the all cash takeover offer from PT Bumi Resources via its wholly owned vehicle Calipso

The Calipso Offer is $2.25 cash per Herald share and is subject to PT Bumi shareholder approval at a meeting to be called for that purpose on 29 January 2008 and a 50.1% minimum acceptance condition, among a number of other conditions. Further details of the Offer are contained in the Bidder?s Statement and Supplementary Bidder?s Statements.

At this time, Calipso has advised the market that it has acquired 38,770,180 ordinary shares in Herald and has received acceptances for a further 76,445 shares, representing in total 19.65% of Herald?s issued shares.

In Herald?s Target?s Statement, Directors stated that in their opinion, the Company has value in excess of the value represented by the Offer.

However, the Directors also said that after consideration of the market conditions and the uncertainty surrounding forestry approval for the Dam Project being granted in the short term, they believe acceptance of the Offer is in the best interests of Herald shareholders at this time.

The $2.25 Offer, being a cash offer, provides Herald shareholders with certainty in a time of high volatility in world financial markets.

Regardless of the ?Accept? recommendation to shareholders, Herald reiterated that it was still engaged in discussions with interested parties with a view to attracting a higher offer for Herald shares.

?Our focus is on maximising returns to Herald shareholders,? said Mr Allen. ?This includes a process of encouraging a higher offer for their shares.?

?We are currently in discussions with a number of interested parties, involving management presentations and visits to the Dairi project site in Sumatra. We hope to be in a position to report back to shareholders on these discussions before the expiry of the Calipso Offer?.

?Shareholders who intend to accept the Calipso Offer should hold off accepting until near the end of the Offer period.?

Herald?s formal response to the Calipso Offer is contained in the attached Target?s Statement which is being sent to shareholders today.

Herald shareholders are encouraged to read the Target?s Statement in full and to consult their financial and other professional advisers as necessary.

Herald is being advised by Euroz Securities Ltd and Blakiston & Crabb on this offer. (end of release)