Straits? Mt Muro gold project update

The following is an excerpt of Straits Resources Limited Quarterly Report for the period ended September 30, 2004 on the company?s Mt Muro Gold Project in Central Kalimantan.

Mt Muro Gold Project
Straits - Contract of Work 70 percent

Drilling has continued throughout the quarter concentrating on the Tumbang Lahung area (Botol vein) and completing initial drilling at Juking Sopan. A progressive resource calculation has been completed at Tumbang Lahung which has defined 178,800 tons of ore at 14.5 g/t gold and 183 g/t silver (containing 100,000 oz?s of gold equivalent). At Juking Sopan resources have been upgraded by 16,000 oz gold equivalent from the previous quarter. Total resources at Mt Muro summarised now stand at 433,000 oz gold equivalent.

Mt Muro Resources September 30, 2004 (at a 1.4 g/t gold equivalent cut-off and 60:1 Ag/Au eq value)

Detailed planning for extraction of these resources is underway. As outlined previously, the plan is to restart operations as soon as possible in 2005.

Juking Sopan
A further 8 drill holes have been completed by the end of the September quarter and the resource has been refined to include all the current drilling. No further drilling is planned in the short term.

Tumbang Lahung
A further 46 drill holes have been completed so far at the Tumbang Lahung area 12 km west of the Mt Muro mine site. Further high grade gold and silver intercepts were made at the Tagape splay on the Botol vein with very consistent high grade assays being intercepted within the shoot. The splay trends north-south and dips at 80 degrees to the west with a thickness of between 0.5 and 8m and a strike length of approximately 100m.

Exploration continues in the Tumbang Lahung area to define further high grade shoots especially at Soan and Sukang.

Significant results are shown below:

(end of report)