Release: Herald Resources: Exciting new drill results ? Basuki Lode

The following is a release from Australian mining firm Herald Resources Limited to the Australian Stock Exchange on November 17, 2004 regarding its Dairi zinc-lead project in North Sumatra.

DAIRI PROJECT
(Herald 80%; PT Aneka Tambang 20%)

Concurrently with finalizing the Bankable Feasibility Study on the high-grade Anjing Hitam deposit, Herald has been conducting small exploration programs on different styles of mineralization known to be present at the Dairi Project.

The latest target selected was the Basuki Lode trend, where a two hole diamond program has now been completed in the central part. The Basuki Lode is located about 1.5km NW from Anjing Hitam.

The first diamond drill hole, drilled roughly perpendicular to strike, obtained the following high grade intercept:
Hole SOP164D 19m @ 29.4% Zn
from 30m depth, underlain by 23m @ 4.07% Zn. The above was in a broad zone of limonitic/hematitic clays with a zone rich in hemimorphite (zinc silicate mineral). The hole bottomed in dolostone, encountered between 70-86m.

The second hole SOP165D, drilled obliquely from the same collar location, was aborted at 52m because of drilling difficulties. Assays for this hole are not yet available. Core recovery in both holes was patchy in parts.

The zone is probably a faulted, strongly altered dolostone with secondary enrichment of zinc and lead. It may represent a deeply weathered, fault fractured and karsted dolostone where descending metal rich solutions have precipitated metals derived from the leaching of since-eroded sedex-type massive sulphides.

The Basuki trend is defined by a 700m long geochemical anomaly. Mineralisation where exposed has been previously trenched and channel sampled by Herald, producing significant zinc and lead values. (e.g. up to 35% Zn, 27% Pb) The one previous drill hole that intersected the zone, SOP15D, obtained an intercept of 10.5m @ 6.3% Zn, 6.5% Pb and 156g/t Ag, also in oxidised material. This hole is about 200m north of SOP164D.

We have previously announced results from Sinar Pagi, located about 15km NW of Anjing Hitam. Sinar Pagi is a quartz breccia style of mineralization that has yielded high lead and silver drill results (9m @ 11% Pb, 129 g/t Ag, 15m @ 8.4% Pb, 64 g/t Ag).

The Basuki Lode results, plus those from Sinar Pagi, clearly demonstrate the enormous potential of the Dairi region. In addition to the Sedex style resources already present at Anjing Hitam (8m tons @ 15.8% Zn, 9.6% Pb) and Lae Jehe (8m tons @ 7.7% Zn, 4.1% Pb), at least two other styles of mineralization with substantial grades and widths are indicated. (end of release)