Release: Herald Resources: Dairi project update

July 5, 2005 ? Diamond drill hole, SOP166D, has intersected massive sulphides at the Lae Jehe prospect from depths of 506.04m - 513.00m and 513.46m - 514.90m with additional bands of sulphides between 522.95m ? 525.75m. Assay results for these intersections are awaited.

The massive sulphides in SOP166D are 170m along strike, to the north, from drill hole SOP60D which intersected 17.7m at 10.6% Zn, 5.0% Pb and they are also 100m down dip from SOP59D which intersected 15.3m at 6.2% Zn, 3.3% Pb which included 6.0m at 10.0% Zn, 5.6% Pb. The newly intersected massive sulphides will extend the previously announced inferred mineral resources at Lae Jehe. These were estimated at 8.2Mt at 7.7% Zn and 4.1% Pb, and have not been included in the Dairi Feasibility Study based solely on the Anjing Hitam deposit situated 1.5 km away (Reserves of 6.6Mt at 15% Zn, 9% Pb).

All widths reported are downhole intervals. The estimated true widths of these intersections are approximately 90% of the downhole intervals. (end of release)

Editor's note: Dairi project is located in North Sumatra. Australian mining firm 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.