HERALD RESOURCES PROMISING FUTURE IN BASE METALS

HERALD RESOURCES KEY INFORMATION MAY 2004 Issued capital-shares 62.5M -options 0.5M Market capitalisation: A$45M Major shareholders: Management 26% ANZ Nominees 22% ANZ Nominees 22% National Nominees 10% Macquarie Bank Ltd 4% Cash $3.5M Unused Credit Lines $3.0M

HISTORY & MAJOR DEVELOPMENTS HERALD RESOURCES 1948 LISTED ON ASX 1983 DIVERSIFIED INTO MINERAL EXPLORATION 1986 DEVELOPED MONTAGUE MINE (WA) 1990 DEVELOPED COOLGARDIE MINE (WA) 1994 DEVELOPED SANDSTONE MINE (WA) 1995 DEVELOPED LYNAS FIND MINE (WA) (AS MANAGER) 1998MADE MAJOR ZINC/LEAD DISCOVERY AT DAIRI PROJECT DAIRI PROJECT 2002 RE-OPENED COOLGARDIE MINE 2003COMPLETED DAIRI PRE – FEASIBILITY STUDY 2004DAIRI BANKABLE FEASIBILITY STUDY TO BE COMPLETED

HISTORY (continued) HERALD RESOURCES - PRESENT MANAGEMENT WITH HERALD FOR LAST 20 YEARS YEARS - NEW MINE DEVELOPED EVERY 4 YEARS ON AVERAGE

SHARE PRICE DATA HERALD RESOURCES

HERALD RESOURCES DAIRI LEAD/ZINC PROJECT DAIRI

HERALD RESOURCES DAIRI PROJECT HERALD 80% PT ANEKA TAMBANG 20%

HERALD RESOURCES DAIRI PROJECT TYPICAL COUNTRYSIDE

HERALD RESOURCES BASE CAMP

HERALD RESOURCES DAIRI PROJECT RESERVES & RESOURCESZoneCategoryTonnesZnLeadSilverReserves Anjing Hitam Probable6.3mt16%10% Resources Lae Jehe Inferred8.2mt7.7%4.1%6g/t BasecampInferred0.8mt7.2%4.3%5g/t

DAIRI PROJECT GRADE OF LARGE ZINC PROJECTS HERALD RESOURCESDAIRIPROJECT Source: International Zinc Assoc 1999

HERALD RESOURCES PROJECT ECONOMICS DAIRI PROJECT

PRE – FEASIBILITY STUDY FINDINGS JUNE 2003 Zn = $885/t Pb = $520/t HERALD RESOURCES Reserves 22% Reserves (Zn 22% Treatment rate1mt per annum Total revenuesUS$904M Net operating pre-tax cash flowUS$228M Capital costsUS$83M Total cash operating costs30 cents/lb DCF calculations (pre – tax) 10%US$61M IRR31% ROE52% Payback period2.5 years

FEBRUARY 2004 METAL PRICES Zn = $1,040/t Pb = $740/t HERALD RESOURCES Reserves 22% Reserves (Zn 22% Treatment rate1mt per annum Total revenuesUS$1,124M Net operating pre-tax cash flowUS$385M Capital costsUS$83M Total cash operating costs30 cents/lb DCF calculations (pre – tax) 10%US$151M IRR58% ROE109% Payback period1.8 years

DAIRI PROJECT CONCENTRATE DETAILS HERALD RESOURCES Zinc Lead Zinc Lead ANNUAL CONCENTRATES 240,000 t pa 130,000 t pa PRODUCED CONCENTRATE GRADE 56% 61.5% PAYABLE METAL 135,000 t pa 80,000 t pa

HERALD RESOURCES PRODUCTION & TRANSPORTATION DAIRI PROJECT

HERALD RESOURCES DAIRI PROJECT ANJING HITAM SECTOR CROSS SECTION 9700N

HERALD RESOURCES DAIRI PROJECT CONCEPTUAL MINE LAYOUT

HERALD RESOURCES DAIRI PROJECT

HERALD RESOURCES DAIRI PROJECT PLANT & ANJING HITAM MINE LOCATION

HERALD RESOURCES PORT OF BELAWAN

HERALD RESOURCES EXPLORATION POTENTIAL DAIRI PROJECT

HERALD RESOURCES DAIRI PROJECT LEAD IN STREAM SEDIMENTS LAE JEHE BASECAMP ANJING HITAM SINAR PAGI

HERALD RESOURCES  SINAR PAGI Previous assays up to 60% Lead 40ozs/t Previous assays up to 60% Lead 40ozs/t Silver over 200m strike Silver over 200m strike  LAE JEHE Existing Resources of 8m/t at 12% combined Zn/Pb Existing Resources of 8m/t at 12% combined Zn/Pb open along strike and down dip open along strike and down dip  BASUKI LODE Previous assay up to 35% Zinc over 800m strike Previous assay up to 35% Zinc over 800m strike DAIRI PROJECT EXPLORATION TARGETS

HERALD RESOURCES INDONESIA ~ A GOOD PLACE TO INVEST?? INVESTMENT CLIMATE LAST 12 MONTHS ~ STOCK EXCHANGE UP 60% MINING TITLE ~ CONTRACT OF WORK SYSTEM LOCATION, LOCATION!! ~ DAIRI REGION VERY STABLE ~ NO ILLEGAL MINERS ~ DAIRI REGENCY 2003 AWARD

HERALD RESOURCES  PRE-FEASIBILITY SHOWS DAIRI IS VIABLE  FINALISE DAIRI BANKABLE FEASIBILITY STUDY (BFS)  AGRESSIVELY EXPLORE DAIRI IN PARALLEL WITH BFS  FINALISE AGREEMENTS WITH FINANCIERS & SMELTERS PARTIES SMELTERS PARTIES DAIRI PROJECT 2004 DEVELOPMENT PLANS

HERALD RESOURCES COOLGARDIE GOLD PROJECT COOLGARDIE

HERALD RESOURCES COOLGARDIE GOLD PROJECT (CGP) HERALD 50% MPI MINES 50%

HERALD RESOURCES COOLGARDIE GOLD PROJECT GOLD PLANT

HERALD RESOURCES COOLGARDIE GOLD PROJECT

HERALD RESOURCES  PRODUCTION FOR – 80,000 ozs  RESERVES 31 DECEMBER ,000 ozs  RESOURCES (EXCL OF RESERVES) 620,000 ozs  CASH OPERATING COSTS OF APPROXIMATELY $450/oz  HERALD HAS GOLD HEDGING AT $600 PER OUNCE  ONGOING EXPLORATION COOLGARDIE GOLD PROJECT

HERALD RESOURCES HERALD 44% PUBLIC 56% JAGUAR MINERALS LTD SPRINGFIELD WILSON RIVER BALFOURKINTOREMT DAVID PROPOSED JAGUAR MINERALS FLOAT

HERALD RESOURCES MELUAK GOLD PROJECT MELUAK MARTABE DAIRI

HERALD RESOURCES HERALDPUBLIC MACQUARIE BANK CORONA GOLD LTD MELUAK GOLD PROJECT 69% 5% 26%

HERALD RESOURCES MELUAK GOLD PROJECT Fe/SILIC BOULDERS 1KM BELOW SOURCE

HERALD RESOURCES MELUAK GOLD PROJECT SULPHIDIC/SILICA BRECCIAS, ACID SULPHATE CLAYS. ORIGINIAL ASSAYS 27.5g/t Au, 69g/t Ag, 5.1% Cu

HERALD RESOURCES MELUAK PROJECT SOIL GEOCHEMISTRY

HERALD RESOURCES COMPANY STRATEGY FINALISE & BANK DAIRI ZINC/LEAD  FINALISE & BANK DAIRI ZINC/LEAD PROJECTINTO “COMPANY MAKER” PROJECT INTO “COMPANY MAKER”  CONTINUE EXPLORATION IN PARALLEL WITH BFS WITH BFS  COOLGARDIE GOLD PRODUCTION TO PROVIDE CASH FLOW FOR NEXT 1-2 YEARS PROVIDE CASH FLOW FOR NEXT 1-2 YEARS  ASSESS SIGNIFICANCE OF MELUAK GOLD DISCOVERY DISCOVERY  COMPLETE JAGUAR MINERALS SPIN OFF  REWARD SHAREHOLDERS WITH DIVIDENDS WHEN CASHFLOWS PERMIT WHEN CASHFLOWS PERMIT

HERALD RESOURCES PROMISING FUTURE IN BASE METALS