Release: Herald Resources: Update on Bumi takeover bid

(7 January 2008)--By now you may have received, or will shortly receive, the Bidders Statements relating to PT Bumi Resources Tbk?s hostile and unsolicited offer (the ?Offer?) for your shares in Herald Resources Limited.

The Board of Herald reiterates its previous advice that you TAKE NO ACTION in relation to the Offer until your Directors make their formal recommendation in the Target?s Statement to be sent to you on or around 22 January 2008.

You will then have at least 14 days in which to make your decision regarding the Offer, as it MUST remain open for at least one month following dispatch of the Bidder?s Statement.

Your Directors are currently evaluating the Offer and holding discussions with third parties with a view to maximising value for Herald shareholders.

The Directors will keep you fully informed of developments as they occur and will notify you of their recommendation on the Offer to give you sufficient time to make an informed decision regarding the Offer.

For further information in relation to the Offer please contact the undersigned at Herald on (618) 9322 2788 or michael.wright@herald.net.au (end of release)